NSW budget: state to shout you lunch, pay for the movies
Every adult in NSW will receive $100 in vouchers to use on dining, entertainment and recreation.
Every adult in NSW will receive $100 in vouchers to use on dining, entertainment and recreation in a bid to stimulate the hospitality and cultural sectors still suffering from the impacts of the COVID-19 pandemic.
The scheme, costing $500m, will involve four digital vouchers worth $25 each, two of which will be redeemable at restaurants, cafes and other venues where food is served. The remaining vouchers will be for use at art galleries, cinemas, amusement parks and theatres, the Treasurer’s office said.
Known as Out & About, the scheme was designed by Restaurant and Catering Australia, an industry group which submitted proposals on the initiative to governments across the country in August.
A trial of the initiative, revealed exclusively by The Australian a fortnight ago, will be launched in December. It will be limited to Sydney’s CBD before being deployed elsewhere in the new year, officials said.
Treasurer Dominic Perrottet said the purpose was to stimulate the economy during the difficult post-Christmas shopping period.
The state is currently losing $400m a week due to the ongoing effects of the restrictions, a hefty sum but one that has been revised down from $1.4bn recorded weekly during the height of the pandemic.
“We want to encourage people to shop and spend with businesses multiple times, to get out and about and support their local community safely,” Mr Perrottet said.
The vouchers will be issued digitally through Service NSW and will be single-use, meaning they cannot be combined to increase their value. “We want to encourage people to open up their wallets and contribute to the stimulus effect,” Perrottet said.
The only other stipulations will be to limit the use of the vouchers so they cannot be spent on cigarettes, alcohol, gambling or general retail products.
They will likely be restricted to use on weekdays to prevent overcrowding.
Businesses that want to participate will have to be registered as COVID-safe.
The scheme is modelled on a British initiative, known as Eat Out to Help Out, which provided diners with roughly $18 off their meals and was similarly restricted to use early in the week. It is one of numerous stimulus measures already announced by Mr Perrottet ahead of the release of the budget papers, which are expected to outline unprecedented levels of borrowing as a means of financing the state’s economic recovery.
Owing to the economic climate, the cost of servicing these debts will be cheaper than under ordinary economic conditions. Treasury officials have forecast that the servicing costs of these loans will average 3.2 per cent of total revenue over the forward estimates. They also expect the state budget to return to surplus by 2025.
“Public spending is not a permanent solution,” Mr Perrottet said. “We will generate momentum in the short term, then reinforce our finances with the discipline that has defined our time in office.”
While Mr Perrottet has declined to specify the amount the government intends to borrow, he said it would be largely paid off using capital accrued in the state’s sovereign wealth fund, known as the NSW Generations Fund.
The fund is currently seeing annual returns of 4.5 per cent and is forecast to be valued at $70bn by 2030.
The proceeds of asset sales, such as the government’s 49 per cent stake in the WestConnex motorway, and coalmining royalties are likely to be channelled into the fund to increase its value further.
More Coverage
Labor to invest $573mn in female health
Improved access to birth control and treatments for UTIs, menopause and endometriosis will reform care for a health area ‘shrouded in shame and stigma’.
‘Unique’ AUKUS deal earns Trump approval
President Donald Trump has flagged his support for the complex defence arrangement with Australia after the Albanese government delivered a $798m payment.