$5bn childcare fund under review by Minns government
A $5bn childcare fund is on the chopping block, with the Minns government set to review the proposed spend for new centres over the next 10 years.
NSW
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It was billed by former treasurer Matt Kean as a way to woo women back to work, but it is understood the Minns government will review a $5bn childcare fund that was to pay for new centres over the next 10 years.
The package had been the first time the state had intervened in childcare, which had been run by the federal government through fee subsidies.
The state government has traditionally been responsible for preschools.
Despite being legislated, The Sunday Telegraph understands the Minns government is considering changing the use of the fund after this year as it reviews some of the key policies of the former Coalition government.
The repurposing of the fund is among a raft of overhauls the Minns government is undertaking as it moves to plug a budget hole while also funding its own election commitments such as public sector wages.
Housing will be a key theme of the budget, with both renters and those seeking find affordable homes to be helped.
And, despite questions over the fate of the Sydney Metro West, work is continuing on the $25bn project both on the ground and behind-the-scenes, with the latest discussions revolving around the prospect of a station at Rosehill instead of Silverwater or Camellia.
“Camellia is too toxic while a station at Silverwater would have to be built too far underground to make it feasible,” a source close to the project said.
However, discussions are also still under way about a station at Zetland as part of a future possible extension.
The Minns government has been pushing a narrative of having walked in to a budget disaster left by an excessive and reckless former Coalition government.
Warning of “tough choices” ahead, Treasurer Daniel Mookhey has already dumped a raft of projects and initiatives of his predecessors from Active Kids, Creative Kids and First Lap sport and swimming vouchers to overhauling the body responsible for managing the state’s rail assets including property, trains and infrastructure – the controversial state-owned Transport Asset Holding Entity of NSW (TAHE).
The government has also confirmed it will suspend contributions to a $15bn fund set up by former treasurer Dominic Perrottet to service future debt – the NSW Generations Fund (NGF) – in a move that will slash gross debt by more than $7bn.
It is understood the broad profile of the upcoming budget will mirror that of the half-yearly budget review delivered in February, which flagged a deficit for 2023-24 of $6.5bn with a modest surplus in 2024-25.
The biggest hit to the budget will be wages, which make up 47 per cent of expenses with the teachers pay deal costing $1.4bn over four years.
However, the government this week declared it would be hiking coal royalties in a move that will raise an extra $2.7bn.
Despite setting the scene for a pauper’s budget, there will be some sugar hits.
Along with housing initiatives, it is understood the upcoming budget will also include several cost-of-living measures along with the the fulfilment of election pledges such as toll relief.
$3BN FOR SYDNEY’S ‘FORGOTTEN’ HOSPITALS
Four of Sydney’s most neglected hospitals will be overhauled as part of a $3bn budget health cash splash to build and fix health services in the greater western suburbs.
More than 50,000 health care workers will also see an increase in their after-tax take-home pay, with the Minns government overhauling the salary packaging of Health Services Union award workers.
Despite the Minns government branding the budget to be in “repair” mode, it wants to reassure voters this will not be in lieu of its election commitments
Dubbed “the forgotten hospital”, Fairfield Hospital has not had a major redevelopment since it opened in 1989, with staff grappling with outdated equipment, broken airconditioning and with medical records still being handwritten.
The government has confirmed its election pledge to spend $550m on upgrading the hospital will be in the state budget on Tuesday, September 19 as part of what it has described as one of the largest recent investments in western Sydney health infrastructure.
The budget will include an additional $400m to build the $700m Rouse Hill Hospital – the first new adult public hospital in Western Sydney in more than 40 years.
The hospital will include an emergency department, maternity services, ambulatory and outpatient care and medical imaging services.
Another $350m will go towards a major redevelopment of Canterbury Hospital, the first to be undertaken since 1998.
The budget will confirm the $1.3bn promised for the new Bankstown-Lidcombe Hospital, which will be built on a new site.
It will be the first major investment since the two hospitals merged in 1997.
The government has also set aside $120m for additional beds at Blacktown and Mt Druitt Hospitals.
As well as investing in hospital infrastructure, the government has also confirmed it deliver better salary packaging for HSU health workers by increasing their share of tax savings from 50 to 70 per cent.
The move will benefit allied health, health and security assistants, administration staff, cooks, patient transport staff, paramedics, sterilisation technicians, tech assistants and telephonists, with the government hopeful it will also help in the recruitment of more workers.
In the case of a cleaner earning $54,483 per year, the change will result in an increase in after-tax take-home pay of $753.36 per year – or about $14.99 per week.
Despite the challenges of the upcoming budget, Premier Chris Minns said the investment in health care in western Sydney was critical in meeting the needs of the region’s growing communities.
“The thousands of people moving into these growth areas every year deserve world class healthcare,” he said.
A recent petition conducted by Fairfield City Council revealed how Fairfield Hospital lacked health specialists, had no electronic medical records and limited maternity services despite being in one of Sydney’s fastest growing regions.
Health Minister Ryan Park said families in greater western Sydney had a right to equitable healthcare.
“That’s why we’re committed to delivering the essential services our community deserves and expects all while building the healthcare infrastructure to meet the need of these growing
communities into the future,” he said.
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