The budget, delivered by federal treasurer Josh Frydenberg, included a number of measures intended to introduced to temporarily lower living costs while also laying up a long-term economic strategy.

Read more: What the 2022 budget means for a regular Illawarra family

Drivers in the Illawarra will benefit from the temporary cut to the fuel tax as prices soared to above $2 a litre in early March.

Low and middle income earners will also benefit from the one-off cash payment of $420 as part of their 2022 tax return and pensioners, welfare recipients, veterans and concession card holders will receive an automatic one off payment of $250.

Aged care workers will see two payments of $400.

Business Illawarra executive director Adam Zarth said the temporary boost would flow to businesses.

"When you see even a relatively small amount of money going into people's pockets, that's money that goes back into the economy," he said.

Prospective home buyers will also be able to access cheaper home loans, however with the scheme capped at houses worth less than $800,000 and the median home price in the Illawarra at over $1 million, the scheme may be of limited benefit locally, said Debra Murphy, CEO of RDA Illawarra.

"We have seen a shift in our economy over the last two years from COVID, supply chain issues and sea changers," she said.

"There is no doubt we are facing significant pressures on our cost of living and housing affordability. Unfortunately, there is no silver bullet answer to these sizeable economic shifts."

Member for Whitlam and shadow assistant treasurer Stephen Jones said Labor would review the cap on the scheme and build more houses directly.

When it comes to big ticket roads and rail projects, Illawarra residents hoping for a fast train will have to catch the Sydney to Newcastle express, funded with $1 billion.

Locally, the planning for the future Picton bypass was allocated $95.6 million and $352 million will go towards the Milton Ulladulla Bypass.

Ms Murphy said it was great to see progress on Picton Road but that there were other projects in the region that were also worthy of funding.

"Illawarra stakeholders have long-advocated for Picton Road and other infrastructure funding and while it's great to see some planning commitments, it would be even better to see some nearer term actions on building the required infrastructure."

Mr Zarth concurred.

"It is fantastic to see the campaign run by our bi-partisan, industry-led Picton Road Motorway Coalition continue to yield funding for this crucial project that will keep our Port and our industrial base open, employing and growing."

Mr Jones welcomed funding for the Picton bypass and the Illawarra Women's Health Centre's Trauma Recovery Centre.

"That's great news but there's not a cent of new money for aged care, nothing for an independent anti-corruption commission. There's too many missed opportunities."

Businesses are being encouraged to put on more apprentices with an extension of wage subsidies for apprentices and while this will increase the pipeline of skilled workers in the medium term, Ms Murphy said this would only partly address skills shortages.

"Economic migration is essential to keeping us competitive and innovative and ... could assist with skill shortages now," she said.

With the Illawarra expected to host future industries such as hydrogen hub, renewable energy and redevelopment of the CBD, Graeme Gulloch, managing director of Waples Marketing Group, said ensuring the region had the right balance of skills was critical.

"Support for education and training providers and programs to make sure that we can get as many of our local young people and local businesses ready to be part of these projects is a clear opportunity."

Greens candidate for Cunningham Dylan Green said a permanent increase in income support is needed.

"The Greens want to see all income support recipients get $88 a day, with no strings attached," he said.

"A one-off payment is not going to cut it."

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