The NSW government has committed $3.4 billion to TAFE across the state to help train tradies and get them through their studies and onto job sites.
"(This is) the single biggest injection in TAFE's budget in more than a decade," Treasurer Daniel Mookhey told reporters on Sunday.
The funding comes as construction sites across Australia face a skills shortage but a growing demand for housing.
The state government estimates the construction industry will need more than 30,000 workers over the next five years to cope.
The investment includes $40 million to ensure 23,000 construction workers can get their apprenticeships done for free.
"We need as many people to complete construction TAFE as possible to help us build, build and build," Mr Mookhey said.
Currently, some courses are deemed "fee-free" under a joint initiative between the NSW and federal governments, while other diplomas can cost up to $25,000.
The funding will also be used to convert casual TAFE workers to permanent, attract more staff and upgrade facilities across the state.
As NSW embarks on its big build, the government has allocated $145 million over four years for the state's Building Commission.
The commission will be able to hire more prosecutors, investigators, inspectors and educators to ensure that the standards of residential construction are lifted.
Housing is set to be a key theme of the state budget to be handed down on Tuesday.
"The reason why is because we haven't built enough homes for people to live in, and so in each budget, we're taking the opportunity to make further progress," the treasurer said.
"Today is about making sure we have the workforce to help us build."
The budget will also be focused on the essential services and the future of the economy, including investment in TAFE, hospitals and schools.
But Mr Mookhey has flagged that, despite the ongoing cost of living pressures, there likely won't be any cash sweeteners in the budget.
"We well and truly accept families are recovering from one of the biggest cost-of-living crises in more than a generation," he said.
"What people will see on budget day is that with interest rates coming down, with real wages going up, we are beginning to see a bit of a recovery in household finances."
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