New spending to ease the housing crisis and boost health and education outcomes will be key features of Treasurer Daniel Mookhey’s second budget today.
But he will also use his budget speech to rue recent changes to GST distributions, costing $11.9 billion over four years and plunging the state’s finances into deficits for the foreseeable future.
The 2024/25 budget bottom line is expected to dip $3.6 billion into the red, upending hopes from December for a $490 million surplus.
This year’s deficit has also worsened slightly to $9.7 billion, from $9.6 billion.
The alternative to deficits would have meant hurting families or businesses, Mr Mookhey will say.
“Helping families is our most important mission during NSW’s worst cost-of-living crisis in a generation,” his speech reads.
“That is why the Government is carefully absorbing the $11.9 billion cut.
“We refuse to respond to the (Commonwealth) Grants Commission’s absurdity by imposing austerity on NSW. That would lead to misery,” his speech reads.
Large states have helped fund smaller states since the dawn of federation but the government has argued the latest hit to NSW’s slice of the GST is disproportionate and a “rip-off”.
Eyes will be on the state’s net debt position, last forecast to reach $110 billion or 13 per cent of the state’s economy by June 2026.
Numerous funding announcements have already been unveiled by the government including $650 million to house essential workers and $3.4 billion to upgrade hospitals and health facilities.
About $1.4 billion has been set aside for new schools and upgrades in regional NSW across four years while the new Rental Commissioner will scoop up $8.4 million to crack down on dodgy agents and rental law breaches.
On the revenue side, more landlords and businesses will face land tax while licence fees for jet-skiers and boaters have been hiked.
NSW BUDGET 2024/25 – WHAT WE KNOW SO FAR
HEALTH
- $3.4 billion to upgrade hospitals and health facilities, including nearly $1 billion for capital works in regional and rural areas
- $274 million to boost staffing at new and upgraded hospitals
- Nearly $112 million for mental health services, including funds for community teams to work in targeted areas
- $40 million to improve health services for children, including extra pediatric staff
- $15.1 million for an upgrade to paramedics’ systems to help them find the most suitable emergency departments
- $6.3 million to examine the feasibility of a NSW “health locum agency” to bring down the cost of hiring temporary staff
EDUCATION
- $1.4 billion for new schools and upgrades in regional NSW across four years
- $1.08 billion for minor works and other upgrades and refurbishments in public schools
- $190 million for urgent repairs on TAFE campuses and a further $16 million to continue fee-free training for apprentices and trainees
- $83.1 million to retain expert TAFE teachers
HOUSING
- $450 million to build apartments for essential workers such as nurses, paramedics, teacher and health care staff
- Nearly $254 million for extra planners and technology to speed up assessment of development applications
- $200 million to buy 120 dwellings and accommodate 500 health workers in regional and rural areas
- $200 million for infrastructure in council areas that meet or beat their shares of state housing targets
- $8.4 million to the Rental Commissioner to target dodgy agents and breaches of rental laws
- Extra income of an expected $1.68 billion over four years due to changes to land tax thresholds for investment properties and businesses
AGRICULTURE
- $946 million for biosecurity protection, including funding to control feral pigs, fire ants and Varroa mite
LAW AND JUSTICE
- $230 million in emergency domestic violence funding, including money for better victim support and extra court resources
- $14.2 million for NSW Police’s forensic evidence and technical services command
EMERGENCY SERVICES
- $189.5 million to guarantee 286 existing firefighter jobs
Top image: Leaders discuss today’s budget (Bianca De Marchi/AAP PHOTOS)
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