The European settlement of New South Wales began in 1788 as a convict economy, with human capital hired out to private entrepreneurs, and government and the military dominating the colony.

[8][9] Successive commodity booms (and busts) in whaling, sealing, wool, gold and wheat characterised the 19th century and fostered a thriving colonial capitalism.

At the time of Federation in 1901, New South Wales was a free-trading state (as opposed to protectionist) with a broad revenue-base including income tax.

This situation reversed during World War II (1939-1945) when the Commonwealth took responsibility for the collection of income tax.

Following the war, the states attempted to re-enter the income-tax field but were rebuffed by High Court rulings (Income Tax decisions).

The loss of income-tax collection meant NSW became totally dependent on Federal Government funding in order to deliver the services it was constitutionally entitled to do (e.g. health, primary/secondary education, transport).

[4] The state boasts a highly trained multilingual workforce, with more than half of its residents aged 15–74 tertiary qualified, and 22% of the population speaking another language than English at home.

[16] DPI is concerned about foreign biotypes of wheat pathogens carrying virulence genes not yet a burden for Australians, including Ug99.

[18] Cattle, sheep and pigs are the predominant types of livestock produced in NSW and they have been present since their importation during the earliest days of European settlement.

New South Wales produces a large share of Australia's hay, fruit, legumes, lucerne, maize, nuts, wool, wheat, oats, oilseeds (about 51%), poultry, rice (about 99%),[19] vegetables, fishing including oyster farming, and forestry including wood chips.

[24] Australia's largest and most valuable Thoroughbred horse breeding area is centred on Scone in the Hunter Valley.

Uncinula necator), Downy Mildew (Plasmopara viticola), and Gray Mold (Botrytis cinerea) are common fungal diseases of grape here.

[31] (In fact the first known example of any anthelminthic resistance in the country was against thiabendazole (TBZ) in Haemonchus contortus of sheep in the Northern Tablelands, reported by Smeal et al., 1968.

[31]) The committee found that by the late '70s bendazole resistances were common in H. contortus, Trichostrongylus colubriformis, and Ostertagia circumcincta spp.