NSW sets up authority & funds $80m innovation drive

The New South Wales government will establish a new Investment Delivery Authority and commit nearly $80 million in innovation funding through the 2025-26 Budget.

Investment Delivery Authority

$17.7 million has been allocated to create the Investment Delivery Authority, which is tasked with accelerating approvals for major private sector projects in NSW. The Authority is expected to manage around 30 large-scale projects annually, potentially facilitating up to $50 billion in investment each year.

The government aims to address concerns from the business community regarding the complexity and length of the current approval process for major investments in NSW. The new entity will coordinate across government agencies to eliminate red tape, expedite development permits, and streamline access to essential utilities such as power.

The Investment Delivery Authority will comprise senior departmental leaders in the Premier's Department, Treasury, Department of Planning, Housing and Infrastructure, and Infrastructure NSW. It will provide recommendations to key ministers, including the Treasurer, the Minister for Planning and Public Spaces, and the Minister for Industry and Trade.

Eligible projects considered for fast-tracked assistance must exceed $1 billion in value, be able to commence development quickly, and align with government priorities outlined in various state policies. Sectors expected to benefit include hotels, data centres, renewable energy, and commercial property development.

Premier Chris Minns said:

"The fact is major projects from the private sector are getting bogged down in red tape, which is making it harder to do business in NSW when we should be doing everything we can to get things moving.

"Our state is open for business and this change will encourage more people to bring their best ideas to life in NSW, all backed by our government.

"We've made great progress with the Housing Delivery Authority. This reform is a big signal that NSW is not just open for business—it's serious about being a global leader in innovation, industry, and investment."

Treasurer Daniel Mookhey added:

"We have listened to what we are being told, loud and clear: everything in NSW is awesome, except for how long it takes to get major projects done.

"We are creating a way to address the blockages, speed up the process and ensure NSW is properly open for business.

"The Investment Delivery Authority is the turbocharger to drive economic growth across the state."

Minister for Planning and Public Spaces Paul Scully commented:

"Lifting productivity growth is a critical issue for NSW and we recognise the challenges businesses and investors face when it comes to bringing their projects to life.

"The Investment Delivery Authority, supported by the Investment Taskforce, will identify and clear barriers that businesses may face, while advising on reforms that promote investment, competition and productivity in NSW."

Innovation Blueprint

Alongside the Authority, the government announced nearly $80 million in new funding to support the state's Innovation Blueprint, which is intended to position NSW as a leader in technology and business growth. This funding will be allocated to several initiatives, including $38.5 million to further develop Tech Central—the country's largest technology hub—and $20 million for emerging technology commercialisation, with a focus on housing and energy.

Other measures include $6 million for the Minimum Viable Products Ventures programme, $6 million to assist manufacturing businesses in adopting new technologies, and targeted funds for initiatives such as supporting female founders and tech leaders in regional areas.

Minister for Industry and Trade Anoulack Chanthivong said:

"With this nearly $80 million of funding, we will ensure we nurture, grow, and support the next Afterpay, Atlassian, and Canva from the early stages through to the most vulnerable periods of a startup's life cycle – particularly just before the jump to commercialisation.

"The funding package will allow Tech Central - the largest tech innovation ecosystem in the country – to flourish as a melting pot for groundbreaking innovation, research, and lifestyle.

"We also understand that the best and brightest tech ideas aren't just born in the inner city of Sydney, so we are providing startup support to our future tech superstars right across the state."

Kate Pounder, author of the Pounder Review and former Chair of the Tech Council of Australia, stated:

"This significant investment in innovation will cement NSW as a world leader in the tech sector.

"Most hearteningly, this money will also go where it is needed most – to female founders, and those from diverse cultures and backgrounds, as well as our budding tech giants living and working in Western Sydney and regional NSW."

Daniel Hunter, CEO of Business NSW, described the measures as "a game-changing step forward for New South Wales," adding:

"With a clear plan to streamline approvals and coordinate government agencies, the new Investment Delivery Authority is exactly what NSW needs to turn ambition into action.

"Coupled with the Innovation Blueprint and nearly $80 million in new funding, this initiative will help transform breakthrough ideas into global enterprises—fostering the next Atlassian or Canva right here in our backyard."

Industry response

Carly Wishart, Managing Director, Corporate and International at AirTrunk, commented:

"Streamlining planning and approval processes for development permits and power allocation is essential if Australia is to capitalise on the data centre growth opportunity and become a smart economy. If Australia is to be a leading digital economy and build its own artificial intelligence capability, then it must have the necessary digital infrastructure and renewable energy needed to support it. AirTrunk welcomes the NSW Minns Government announcement in recognising that the race to build AI infrastructure is a global one and speed to build is the critical factor. We look forward to working with the Investment Delivery Authority to hasten planning processes, ensuring that NSW and Australia get the productivity boosting benefits of AI."

Craig Scroggie, CEO & Managing Director of NEXTDC, said:

"In today's geopolitical environment, trust and sovereignty are economic assets. As a Five Eyes nation, Australia is uniquely positioned to lead the next industrial era, and New South Wales is stepping up to that role. The Investment Delivery Authority is about execution. It reflects a deep understanding of the five pillars now shaping global AI infrastructure: speed, scale, security, sustainability, and sovereignty.

"Speed and scale are the new currency of global leadership. The Authority creates a faster path from planning to execution - reducing friction, aligning government, and providing the regulatory certainty private capital requires. NEXTDC has over $15 billion in AI infrastructure projects planned across NSW - including AI factories, high-density data centres, and mission-critical operations centres. This reform allows us to build the digital backbone of the future - faster, and at global scale.

"AI infrastructure has outgrown traditional planning systems. These aren't just data centres - they're sovereign-scale assets designed to power the AI era. Conventional frameworks are now facing first-of-a-kind scale challenges. This reform clears the path for accelerated approvals and long-term certainty - unlocking the investment required to deliver national capability and positioning NSW as a global destination for next-generation digital infrastructure."