’Shrubbery’ figures deliver $800m hit to NSW Budget

Shrubs and flowers have delivered an unexpected $800 million hit to the NSW Budget. See why.

NSW Treasurer Daniel Mookhey has revealed a revaluation of trees, shrubs and flowers in parks will cost NSW $800 million.Picture: NCA NewsWire

It sounds like a plot from Yes Minister or Utopia but it’s no laughing matter for the state budget – a revaluation of trees, shrubs and flowers in parks will cost NSW $800 million.

The Saturday Telegraph has been told Treasury beancounters are scratching their heads at the figure, which follows an audit of vegetation assets in Centennial Park and across public school playgrounds.

At schools, the cost of replacing “soft landscaping” such as shrubs, plants, flowers and even turf was revalued by the Department of Education to more than $2.2 billion.

It is understood the revised benchmark relates to the price of replacing the flowers and shrubs soaring from $30 per square metre to $150 per square metre. The price has increased as a result of the rising cost of gardening materials and labour.

The increase in the valuation of landscaping – which pushes up the depreciation expenses – comes despite the addition of 28 new schools between 2018-2019 and 2022-2023 under the former government.

A River Red Gum in the front garden of the former home of playwright Patrick White at Centennial Park. A revaluation of trees in Centennial Park has seen these biological assets rise from more than $204 million in 2022 to more than $295 million.

Adding to the financial burden is the revaluation of trees in Centennial Park – the first time the biological assets have been audited in the past five years. The change resulted in value of the biological asserts rising from more than $204 million in 2022 to more than $295 million.

The Centennial Park and Moore Park Trust valued “over mature trees” last time, with “semi-mature and mature” trees valued this time around.

The exercise has led Treasurer Daniel Mookhey to draft a directive on the way future revaluations are carried out, instead of individual government agencies undertaking the work in three and five year cycles.

Last year the state also incurred hundreds of millions of extra depreciation charges.

“Most people would struggle to believe that we would ever have to replace the trees at Centennial Park, so it will come as a surprise that audit rules mean we have to budget for such a scenario,” he said.

“For too long, agencies have been left to manage routine accounting challenges like this with little guidance from the Treasurer. So the NSW Treasury and I look forward to working with the Audit Office and the public service to develop clear and consistent guidance about how to account for the value of our assets during times of high inflation.”

The budget will be delivered on June 18.

Mr Mookhey has already said it will have to be one of “must haves” rather than “nice to haves”.

The trees in Centennial Park provide a home to animals, including a family of powerful owls. The revaluation of trees, shrubs and flowers in schools and parks across NSW has resulted in an expected $800 million hit to the NSW Budget. Picture John Grainger

It sounds like a skit out of a Monty Python movie, but a revaluation of trees, shrubs and flowers in schools and parks has resulted in an expected $800 million hit to the NSW Budget.

The Saturday Telegraph has been told Treasury beancounters are scratching their heads at the figure, which follows an audit of vegetation assets in Centennial Park and public school playgrounds.

At schools, “soft landscaping” such as shrubs, plants, flowers and even turf was revalued by the NSW Department of Education to more than $2.2 billion – a seven-fold increase on its earlier value of $2 billion.

NSW Treasurer Daniel Mookhey says he is looking forward to working with the Audit Office and the public service to develop clear and consistent guidance about how to account for the value of NSW assets. Picture: NCA NewsWire

It is understood the revised benchmark relates to the price of replacing the flowers and shrubs soaring from $30 per square metre to $150 per square metre.

The price is understood to have increased as a result of the rising cost of gardening materials and labour.

The increase in the valuation of landscaping – which pushes up the depreciation expenses – comes despite the addition of 28 new schools between 2018-2019 and 2022-2023 under the former Coalition government.

The 2024-25 NSW Budget will be delivered on June 18.

Mr Mookhey has already said it would have to be one of “must haves” rather than “nice to haves”.

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