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Good afternoon! And a big thank you to Mary Ward, who has been guiding you through the NSW Budget thus far.
I'm state political reporter Lucy Cormack and I will be taking you through all the ins and outs of the fiscal excitement this afternoon.
If you're just joining us, Treasurer Dominic Perrottet has finished presenting the 2020/21 state budget to the lower house, revealing a historic $16 billion budget deficit.
The state’s debt will peak at $104 billion in 2023/2024 and the budget will not return to surplus until 2024/2025. NSW has not had a budget in the red for almost a decade. But it's not all bad news.
There will be lots more to come, as our steely-eyed economics and political reporters probe the budget papers. I hope you can stay with us.
NSW has 'golden opportunity' to spend: Perrottet
By Mary Ward
Treasurer Dominic Perrottet has used his budget speech to reflect on the stimulus measures already implemented by the state government during the coronavirus pandemic.
"When the pandemic broke, we made a conscious decision: to put the economy before the budget," he said.
In 2019-20, NSW recorded a deficit of $6.9 billion. For 2020-21 the state has forecast a deficit of $16 billion.
"This isn’t just increased spending: forecast revenue is down by $25 billion over five years," the Treasurer said.
"Net debt is expected to peak at $104 billion at June 2024. But despite the increase in borrowing, the cost of debt has never been lower."
Mr Perrottet stressed low interest rates presented the "golden opportunity" to restart the NSW economy, outlining a number of expenditure programs.
"But make no mistake: public spending is not a permanent solution," he added, noting "stimulus today does not mean stimulus forever" and flagging $12 billion in fiscal-repair measures over the next four years.
He concluded his speech with a recognition that the state had endured an undeniably hard year: "For many people the end of the year cannot come fast enough. But I believe we will look back on 2020 as the year that forged our resolve to build a better future. This year has shown us what we are capable of."
This is Mary Ward signing off, but Lucy Cormack will be continuing our coverage.
'A year forever etched in our memories': Treasurer
By Mary Ward
Treasurer Dominic Perrottet has started his budget speech to Parliament reflecting on the past year in NSW, noting that today, November 17, is exactly one year since the first known coronavirus case was detected in China.
"As many in NSW were gearing up for Christmas, no one knew what the year ahead had in store," he said.
"Catastrophic fires. Destruction of homes. Loss of life. A global pandemic. The world economy grinding to a stop. And a million Australians out of a job. It’s a year that will be forever etched in our memories."
Mr Perrottet said the state came into the pandemic with "a budget to weather any storm", with today's budget focusing on building on the state's response so far.
Bushfire recovery, social housing to receive budget boost
By Mary Ward
While we wait for the Treasurer to speak, here are some of the budget measures freshly announced today (as opposed to these ones which we had already heard about).
- Replacing stamp duty with an annual land tax on new property transactions, injecting as much as $11 billion into the state’s economy over four years.
- An $812 million investment in new social housing.
- Larger payroll tax savings than previously reported. The rate is to be reduced from 5.45 per cent to 4.85 per cent, which will deliver businesses savings on average of $34,000 a year over the next two years. The change will cost $2.1 billion in revenue to the state.
- $29.6 billion on its COVID-19 response over the next five years, with an assumption a vaccine will be available from mid-2021.
- A commitment of $4.4 billion to bushfire response and recovery measures after the horror summer fires, as well as $4 billion on drought.
You can get across today's budget by reading state political editor Alexandra Smith's wrap here.
NSW to phase out stamp duty as state records $16b deficit
By Alexandra Smith
Treasurer Dominic Perrottet will undertake the state’s biggest tax reform in decades with stamp duty to be phased out to boost the economy as NSW records a historic $16 billion budget deficit.
In his fourth budget handed down on Tuesday, Mr Perrottet said replacing stamp duty with an annual land tax on new property transactions would be a key stimulus measure, injecting as much as $11 billion into the state’s economy over four years.
NSW Treasurer Dominic Perrottet has handed down his fourth budget.Credit:Louise Kennerley
"This is the reform we need to implement," Mr Perrottet said.
The state’s debt will peak at $104 billion in 2023/2024 and the budget will not return to surplus until 2024/2025. NSW has not had a budget in the red for almost a decade.
Public sector wages flagged as big budget saver
By Mary Ward
In addition to stimulating the economy with payments and funding, the NSW government has also already flagged some savings to be made with its 2021 budget. Here are the couch cushions they are lifting to find some cash.
Public sector wages
Coal royalties
- The budget will also see $1.5 billion in coal royalties diverted to a sovereign wealth fund rather than used for recurrent spending in recognition that coal revenue will decline as renewables surge.
- The fund will be used to offset the government's anticipated high levels of debt.
Westconnex and NSW Lotteries
Tutors and mental health nurses to form part of education and health budget spend
By Mary Ward
As mentioned earlier, a number of budget measures have already been announced. Here is what we already know is being sent to the education sector.
There will be a $337 million spend on school tutors in 2021 to help students struggling after months of home learning. The fine print:
- $306 million to provide small group tuition for eligible students across every NSW government school, including primary, secondary and schools for specific purposes (SSP);
- $31 million for non-government schools with the greatest levels of need to provide small group tuition
The government is also spending $120 million for a free preschool program for more than 44,000 three- to five-year-olds, while NSW Health will see $46.8 million towards 100 school-based nurses to support mental health.
After Westconnex, no other major asset sales in budget: Perrottet
By Mary Ward
After announcing earlier this month the NSW government will sell its remaining stake in the WestConnex motorway, Treasurer Dominic Perrottet has said there will be no other major asset sales in today's budget.
The governments intends to sell the remaining 49 per cent of the 33-kilometre motorway after an extensive scoping study that began in March. The multibillion-dollar asset is expected to draw interest from around the globe.
Mr Perrottet told Nine News on Monday evening there would be no further major sales to fund the state's $100 billion infrastructure spend.
"That doesn't mean the agenda stops. It's a combination of both asset recycling and debt financing, this is what's going to get our state through it, and that strong fiscal management off the back of it," he said.
with Tom Rabe
What the opposition is saying
By Mary Ward
Restaurant vouchers, loans for building repair and gene therapy funding
By Mary Ward
Several budget measures have already been announced ahead of Treasurer Dominic Perrottet's speech at noon. Our state politics team has collated them into this handy list.
As for the latest announcements, here are the three very different packages that were revealed this morning.
The centrepiece of today's budget will be the $500 million Out and About scheme, which will give every adult in NSW four $25 vouchers to spend separately on dining and entertainment to encourage visits to struggling cafes, restaurants and cultural institutions.
Meanwhile, apartment owners forced to replace flammable cladding on 225 high-risk buildings across NSW will be able to access interest-free loans as part of a $1 billion government program over the next three years aimed at helping to resolve the crisis.
- Finally, there will be a $49.6 million funding boost for new cell and gene therapies, including funding for CAR T-cell therapy for people with certain types of cancer and gene-based therapies for spinal muscular atrophy.
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2020-11-17 01:52:00Z
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