NSW budget 2018: What it means for you
COST of living is expected to be front and centre of tomorrow’s NSW budget, with Treasurer Dominic Perrottet planning to mix the state’s record infrastructure splurge with tax cuts, free apprenticeships and baby bundles for new families.
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COST of living is expected to be front and centre of tomorrow’s NSW budget, with Treasurer Dominic Perrottet planning to mix the state’s record infrastructure splurge with tax cuts and concessions.
Having already revealed a cut to payroll tax for NSW businesses, Mr Perrottet says the government’s last budget before the 2019 election will attempt to address the state’s rising cost of living.
“Infrastructure is always there and continuing, at the same time, we’ve got a clear focus of making sure we’re meeting people where they are, cost of living is front and centre,” Mr Perrottet said ahead of tomorrow’s budget.
“In the last two budgets we’ve substantially cut tax, business taxes and stamp duty taxes, and that will continue.”
The government will lift the payroll tax threshold from $750,000 to $1 million by 2021/22, returning a projected $881 million to NSW businesses.
Mr Perrottet has also promised to cut 10 of the most common parking fines by 25 per cent, as well as setting aside $157 million for a new parents package to reduce the initial costs faced by new parents.
Despite bracing for a significant hit to stamp-duty revenue, caused by a cooling housing market paired with government first-home buyer concessions, Mr Perrottet said he had no intention to alter policy settings.
“The increase in first-home buyers is significant, and if that means the budget of NSW loses some revenue, as a result of young people getting the keys to their first home, then that’s a great thing,” he said.
“That’s why we run a surplus.”
Stamp-duty revenue represents around nine per cent of government revenue. Aside from cost of living measures, Mr Perrottet said health and education were going to also feature heavily in the budget.
“We want to have the highest quality healthcare and the best education system in the country and they’re always, to me, the foundations of a good budget,” he said.
An extra $1 billion will also be spent on recruiting more doctors and allied health workers across the state.
The government will also make a multi-billion dollar commitment to the state’s police over the next four years, with $118 million set aside to build six new police stations.
The budget will also feature close to $3 billion in roads funding, including a commitment to build the first section of the F6 extension.
NSW BUDGET 2018: WHAT’S IN IT FOR YOU
APPRENTICESHIPS
Apprenticeships will be free in NSW under a $285 million plan to fund 100,000 positions, the Daily Telegraph revealed today.
The program is designed to relieve financial pressure on apprentices and ensure a strong pipeline of skilled workers for large-scale infrastructure projects.
The government believes it will also support businesses who pay for apprentices’ training.
INFRASTRUCTURE
Western Sydney roads are set to get a facelift with more than $2.6 billion set aside for road projects over the next four years.
The multibillion-dollar funding will be spent on road upgrades in western and southwestern Sydney with more than $780 million to be spent in 2018-19.
Henry Lawson Drive will get a $100 million facelift, with construction works also planned for Bringelly Road, the Northern Road, Campbelltown Road and the M4 motorway.
TAX
NSW will cut taxes to save small businesses $881 million over the next four years.
The Berejiklian government will lift the payroll tax threshold in Tuesday’s budget from $750,000 to $1 million by 2021-22.
Nearly 40,000 firms will save up to $5,450 each on payroll bills next financial year and up to $13,600 per business in 2021-22.
Ultimately 5000 companies won’t face any payroll tax - saving them roughly $50 million in red tape costs on top of the tax relief, according to the NSW Business Chamber.
HEALTH
Nearly 1400 nurses, doctors and health workers will be employed in NSW hospitals.
Premier Gladys Berejiklian and Treasurer Dominic Perrottet say the “record” $1 billion in new recurrent funding will bring the 2018-19 health budget to $23 billion.
The extra 950 nurses and midwives, 300 doctors and 120 allied health workers will be in hospitals and health services across the state.
PARAMEDICS
Almost $1 billion will be pumped into the NSW ambulance service to employ hundreds of new paramedics and call centre staff across the state.
750 new paramedics and call centre staff will be added to the service, with the first 200 due to be deployed within the next 12 months.
BABY BUNDLE
A newborn essentials hamper worth $150 will be given to every new mum to ease financial strain on new parents.
Items such as nappies, a change mat, sleeping bad, thermometer and children’s book will be included as part of the $157 million ‘baby bundle’.
EDUCATION
MORE than $6 billion will be spent over the next four years building new schools and upgrading existing ones.
The money from the upcoming state Budget includes 10 new schools and 10 new upgrades, and bout 900 new full-time science and maths teachers will be employed in NSW public schools.
The positions will be created in areas of population growth, including Sydney’s northwest and southwest.
“Teachers are the engine that drives our education system, so it is essential that we not only recruit them, but continue to offer comprehensive support to teachers throughout their careers,” Education Minister Rob Stokes said.
AIRCONDITIONING
UP to 1000 NSW public schools will be fitted with airconditioning in one of the biggest upgrades to classroom amenity standards in the state’s history.
More schools than ever before in NSW’s hottest areas will automatically be airconditioned under the plan, and other schools will have a better chance of getting the amenity.
In addition, every new school and every existing school being upgraded will be airconditioned.
STAMP DUTY
There’s heightened desire that the budget does something on the stamp duty front.
Last financial year, NSW residential and commercial property buyers paid a total $9.8 billion in stamp duty after a record 228,000 sales, with stamp duty accounting for 28 per cent of all state tax revenue.
BUSES
MORE than 2000 extra bus services a week will be added to Sydney in a bid to tackle the growth pains stretching the city’s transport network.
Under the plan, the government will purchase 400 new and replacement buses while also employing 70 new drivers.
ENERGY
A new service to switch households to cheaper energy bills has been announced.
As part of the government’s attempt to reduce the cost of living, households will be able to take their bills to Service NSW, who will do the admin work of finding the cheapest deal and switching providers.
The pilot program, which could save around $1000 on an average energy bill, will be rolled out in five locations across NSW in coming months.
DRIVERLESS CARS
NSW could soon be home to more driverless cars, with the state government setting up a special $10 million fund for more trials of the technology.
The kitty will allow governments, universities, the private sector and start-ups to join forces and test driverless technologies in NSW’s cities and regions.