Treasurer Daniel Mookhey says Budget focus will be on ‘fixing the fundamentals’

Tuesday’s State Budget will contain no cash splashes or new handouts, with the Treasurer saying ‘Band-Aid solutions’ no longer ‘cut it’.

There will be no cash splashes or new handouts, with Treasurer Daniel Mookhey declaring his Budget will be about “fixing the fundamentals” such as housing.

While cost of living has been an ongoing problem, Tuesday’s Budget will show there has been relief for families, with real wages going up and the government expecting more growth.

While critics will argue Labor has no money to offer any cost-of-living relief after lifting the public sector wages cap, Mr Mookhey claims “Band-Aid solutions” no longer “cut it” over the longer term.

Instead, the government was focused on fixing things like the toll contracts, providing free-free apprenticeships and addressing the housing affordability crisis, the latter being a key theme of the Budget.

There will also be more money for schools, hospitals and “the basics” in what would be a “steady as she goes” Budget.

NSW Treasurer Daniel Mookhey in his office at Parliament House ahead of Tuesday’s Budget. Picture: Jonathan Ng

“We are focused on the fundamentals, the type of reform that’s necessary to keep things affordable in the long-term” Mr Mookhey said.

“What I hear (from families) is they want to see things get better. Band-Aid solutions won’t cut it any more. We need deeper reform to these problems that have been built up over many, many years and will take years to resolve.

“A classic example is housing. This housing crisis has taken years to develop and we acknowledge that we need to build more homes to improve affordability.

“We are doing as much as we can to get more homes built.”

Easing the housing crisis remains the state government’s key focus. Picture: Bayside Council

Mr Mookhey said the Budget would show wages growth combined with interest rates going down would help the local economy, with the extra “purchasing power” helping local businesses.

“Businesses need to invest more, but will only invest more if consumers buy more, and the Budget will show we’ve made progress there,” he said.

As for services such as transport, Mr Mookhey acknowledged the rail system “needs to be more reliable”.

“We are not pretending it is where it needs to be,” he said, although pointing to the $97 million he allocated in his first Budget to deal with a maintenance backlog.

“We need to do a better job,” he said.

The budget will also include $452m to fix a bus shortage, including more school buses.

Privately, Labor MPs know time is running out to fix train and bus services before the next election.

Mr Mookhey acknowledged the rail system needed to be ‘more reliable’. Picture: NewsWire/Nikki Short

While the wages disputes had been difficult, Mr Mookhey said abolishing the cap had been necessary to fix workplace shortages such as in the classroom.

On Donald Trump, the Treasurer said “geopolitical factors” and “global uncertainty” were factors considered when drafting the Budget.

“We are transitioning from a cost-of-living inflation crisis to low growth,” he said.

“We need the economy to grow faster.

“We obviously have to take into account a lot of change, but we think we have the balance right to deal with the uncertainty.”

This included looking more domestically for growth, he said.

Charlie and Amelia Jane Burfitt with their children (l to r) Cecilia, 8, Lucia, 10 months, Raphael, 6, Evelyn, 2, Joseph, 5, and Jude, 3. Picture: Supplied

Glenbrook father-of-six Charlie Burfitt said he hoped the Budget would contain measures to help families with the cost of living, although also rejected cash splashes and handouts as a solution, saying there needed to be ‘smart spending” rather than “over- spending”.

Mr Burfitt, who moved to the Blue Mountains for “space and affordability” said he wanted to see “meaningful relief” in areas such as tolls and car registrations, improvements to train services, and help to allow a parent to look after their young children at home.

He and his wife Amelia had taken turns as to who stayed at home, but said most families did not have a choice but to go back to work as soon as they could and put their children into childcare.

The Burfitts’ day begins at 5am with both parents sorting breakfast before the six kids are piled into the car and the older siblings are dropped off at preschool and primary school.

Mr Burfitt, who works as a lawyer in the CBD, says he spends almost two hours commuting to work, noting that trains were increasingly delayed “or cancelled”.

The pick-ups occur in the afternoon, with son Raphael also attending various therapies.

“There is a lot of money being spent on out-of-home care for kids to help both parents work, but Amelia needs to be home not just to manage Raph’s myriad of therapies, but also help the other kids,” he said.

“I think people acknowledge it would be nice to be home, but that it’s a luxury they can’t afford, which is tragic because what they are doing at home – whether mum or dad – is an investment in the future of the state.”

Originally published as Treasurer Daniel Mookhey says Budget focus will be on ‘fixing the fundamentals’