NSW Budget analysis: It will never get better than this for Gladys after record surplus

GLADYS Berejiklian should take a minute to look around the room at Budget lockup and reflect: it will probably never get better than this.

It won’t get much better than this for Treasurer Gladys Berejiklian after she hands down the NSW Budget. Picture: Phillip Rogers

GLADYS Berejiklian should take a minute to look around the room at Budget lockup and reflect: it will probably never get better than this.

It was only last year I was tapping out a yarn saying ­“tomorrow’s budget surplus will be a record $2.1 billion”. It turned out to be $2.8 billion.

Today the Treasurer’s office is giving us the story that the 2015-16 surplus will be $3.4 billion. No doubt today there will be a forecast for smaller ­surpluses in future years ­because of a drop in stamp duty revenue. But who can say definitively that drop will eventuate? As far as the economics of this government goes, this could prove a golden term. Don’t forget, we still have the partial leasing of Ausgrid and Endeavour Energy to come — to reap at least ­another $10 billion for government. And, so the government argument goes, there is a natural pump-priming of the economy from all the infrastructure the government is building.

With all this money splashing about and housing affordability being one of Sydney’s biggest issues, I am told there is no change in the Budget to the first home buyers scheme and I have to ask why. Ms Berejiklian has refused to rule out changes. The scheme, as it is, only gives buyers of newly constructed homes a stamp duty concession if the house is worth up to $650,000. Surely Berejiklian could’ve lifted the threshold and, even if she did not want to dig into her surpluses to pay for it, she should scrap the $5000 payment for everyone building new homes or units, as this is no longer necessary.

All in all, though, it’s a big day for Gladys today and a confirmation that when it comes to the economy at least, NSW is killing it. But there’s a reason why Berejiklian appears nervous in the lead-up to days like today. Because it’s also her audition for the Premier’s job down the track.