22 June | NSW Budget Summary
OVERVIEW
At midday today NSW Treasurer Dominic Perrottet handed down his fifth Budget.
The Treasurer said this Budget was about leaving NSW in a better place for future generations. To see the Treasurer's full speech click here.
NSW has recovered all 270,000 jobs lost during the pandemic and added 36,000 more. The forecasted deficit of $7.9 billion is smaller than the $16 billion deficit the Treasurer had predicted in November last year. This forecast will now bring the Budget back to a surplus of $466 million in 2024-25.
Record Infrastructure Pipeline
Today the NSW Government has committed to a $108.5 billion infrastructure pipeline over four years. This is a significant amount of funding compared to the $110 billion 10-year infrastructure program from the Federal Government. Spending includes:
$12 billion for the Sydney Metro West
$3.1 billion for the More Trains, More Services program to modernise the rail network
$2.7 billion for the M6 Stage 1
$2.1 billion in new capital expenditure to deliver 44 new and upgraded schools
$2 billion for the Great Western Highway upgrade
$1.9 billion for WestConnex
$1.3 billion for the new Intercity Fleet
$1.3 billion for the Northern Road upgrade and the M12 Motorway
For the full list of infrastructure investments click here (page 17).
Stamp Duty Reform
As part of last year's Budget, the NSW Government proposed changing the NSW tax system to allow property buyers to either pay stamp duty in full when purchasing a home, or pay a smaller annual land tax.
Last week the Treasurer released a progress paper on his proposal, which predicts that the proposed reforms would result in the annual incomes of NSW residents increasing by more than $10 billion in the long-term, and injecting $11 billion back into the economy over the first four years.
The revenue earned from stamp duty for the 2021-22 financial year is a whopping $9.379 billion. Regardless of this huge figure, the Treasurer says, "while stamp duty might be the number one revenue source the NSW Budget receives, it doesn't make it a good tax," and hasn't changed his mind that stamp duty should be reformed.
Digital Restart Fund
Last year the Treasurer announced a $1.6 billion investment into the Digital Restart Fund. In today's Budget, an additional $500 million has been allocated, bringing this investment to a total of $2.1 billion.
The Digital Restart Fund invests in projects that use modern methodology. To see if your project is eligible for funding click here.
BUDGET HIGHLIGHTS
Planning, Industry + Environment
$1.1 billion to kick start work on the new Bradfield City Centre
$490 million to drive incentives for residents to purchase electric vehicles
$380 million allocated to aid construction of renewable energy plants
$356 million to phase out single-use plastics and to roll out organic waste bins
$108 million to rehabilitate old and disused mine sites in NSW
Health
$10.8 billion over four years for health infrastructure investment across metropolitan and regional NSW
$109.5 million for child and adolescent mental health
$82.8 million boost for palliative care services
$50 million to treat severe neurological disorders
$21.6 million to build specialist cardiac capacity for heart patients
Treasury
Forecasted deficit of $7.9 billion
$2.7 billion over 4 years to give public servants a 2.5% pay rise
Transport
$12 billion over four years for Sydney Metro West
$3.1 billion over four years for the More Trains, More Services program to modernise the rail network
$50 million for Stage 2 of the Parramatta Light Rail
Education
$2.1 billion to fund 44 new and upgraded schools, including Gregory Hills PS, Westmead PS and Marsden Park HS
$150 million to retain the free preschool program, saving families $4,000 per year per child
$8 million to delivery free books to children in order to improve literacy rates
Customer Service
$14 million to support and expand the current cost of living measures and programs
$50 million for $100 vouchers for 500,000 residents to dine on Friday's in the CBD
Stronger Communities
$259.6 million to build 250 new homes and renovate 7,000 homes for indigenous families
$56.1 million to appoint eight extra local court magistrates
$60 million to support women and children who experience domestic and sexual violence
Regional NSW
$67 million to upgrade racetracks
$63 million for drought strategy
$36.4 million for mental health support in regional NSW
$7.7 million to boost ADHD and Behavioural sport in Regional NSW
Premier and Cabinet
$260 million for cultural exhibitions and institutions
Up to $12 million per year for paid leave for women who suffer miscarriages, stillbirth or a premature birth
For full details on the 2021-22 NSW Budget please click here.
