Homebuyers, public workers biggest winners in NSW budget as renters miss out

Bill rebates for NSW residents have been increased and extended as part of an $8.2 billion boost to cost of living measures, though renters have been left high and dry.

Australia’s largest state economy is bracing for pain after being warned “tough choices” need to be made ahead of the NSW state budget.

When Treasurer Daniel Mookhey hands down his first budget on Tuesday afternoon he is expected to lay bare the dire state of the state’s finances.

Facing a mountain of increasing state debt, soaring living costs and ailing essential services, he will cut existing voucher programs for families and spend more on retaining key worker positions.

While all will be revealed within hours, here’s what we know so far.

NSW Treasurer Daniel Mookheyis handing down his first budget on Tuesday. Picture: NCA NewsWire/ Nikki Short

WINNERS

Residents of regional NSW

Regional NSW’s health services, roads and public transport routes will receive a major boost in the 2023 Budget, with $3.8 billion to be spent on health, $1.4 billion for schools and $1.8 billion in other new investments.

Of this, $390 million will be spent on an emergency road repairs fund for urgent road and pothole repairs and $217.5 million on increasing water supply and quality.

Nearly $440 million will be spent on recruiting 500 paramedics to rural and regional areas, and the incentive payment for healthcare workers to move out of the cities will be doubled, from $10,000 to $20,000.

Homebuyers

Funding for the NSW First Homebuyers Assistance Scheme has been increased by nearly $300 million, with the state government now contributing $998 million towards stamp duty discounts across four years. There is no change to eligibility, but the funding has been increased as a result of demand, with 84 per cent of first homebuyers in the state eligible for some sort of discount under the scheme.

Public sector workers

Promising to boost the pay of public sector workers was a policy commitment that played a key role in Labor’s election success.

Premier Chris Minns has promised at least a 4 per cent wage increase to workers, along with a 0.5 per cent boost to superannuation.

The pay rises have been budgeted to cost $2.5bn, with wage negotiations for teachers costing a further $1.8bn over the next four years.

Previously they were estimated to cost about $618m during the 2023-24 financial year and will be paid for through budget savings and productivity gains.

A four-year $3.6bn Essential Services Fund (ESF) has also been established to fund wages increases for essential workers like nurses, paramedics, firefighters, teachers and other frontline workers.

Labor’s uplift to public sector wages has come at a budget cost of $618m. Picture: NCA NewsWire/ David Swift

Bill payers

The government will spend $1.3 billion over the 2023-24 financial year on rebates and other relief measures for energy bills. In conjunction with the federal government, up to 1.6 million households will be eligible for a $500 rebate automatically applied to bills before July 1, 2024, and about 300,000 small businesses will be eligible for $650 in energy bill relief.

Additionally, the cap on Energy Accounts Payment Assistance crisis support payment for households experiencing financial distress has been increased by up to $500.

Another $100 million has been set aside by the Minns government for other bill relief measures in the 2024-25 financial year.

From July 1, 2025, concession card holders will also be able to access higher energy rebates. The Low Income Household Rebate and Medical Energy Rebate will increase from $285 to $350, the Family Energy Rebate will go from $180 to $250, and the Seniors Energy Rebate will rise from $200 to $250.

Amid fears of risks to energy security, and a push to extend the life of Australia’s largest coal-fired power plant Eraring, the government has injected $1bn into Restart NSW.

The cash will be used by the Energy Security Corporation for projects like investing in community batteries and virtual power plants that will allow communities to pool electricity generated from rooftop solar.

The Transmission Acceleration Facility will also receive $800m to speed up construction in the Central-West Orana Renewable Energy Zone.

Women

A further $34.3m has been committed to women’s health centres in Sydney, the Hunter, the Central Coast, Illawarra, Lismore and South Coast.The NSW government will also spend $5.8 million on a Future Women’s Jobs Academy to help increase women’s participation in the workplace. A new Working Women’s Centre will be established in conjunction with the Federal Government to help women navigate sexual harassment at work, underpayment, wage theft and parental leave.

Teachers and students

Another $3.5bn over four years will be used to build or upgrade more than 60 new schools in Sydney’s western suburbs. The funding will go towards building new schools in 18 suburbs and upgrading facilities in nine areas.

A four-year $14.5m Football in Schools Program has also been minted and delivered in schools and at the training facilities at A-League clubs. About 40,000 students are expected to participate each year.

A whopping $3.5bn has been committed to build and upgrade more than 60 schools across the state. Picture: NCA NewsWire/ Damian Shaw

NSW’s public health system

$3bn has been promised to upgrade and build new hospitals in western Sydney, with the ultimate goal of creating 600 new hospital beds.

The funding includes $400m to build Rouse Hill Hospital, $550m for the first major redevelopment of Fairfield Hospital and $1.3bn to construct the Bankstown-Lidcombe Hospital on a new site.

The government has also committed $572m over four years to permanently hire 1112 nurses and midwives who were initially hired during Covid but only funded until June 2024.

Students studying health

The government has allocated $121.9m for university students studying health to receive a $4000 scholarship for each year of study.

Applications will open on January 1, 2024, and 12,000 students across medicine, nursing, paramedicine and midwifery are expected to benefit. Current students can also apply for a one-off $8000 payment upon graduation.

Childcare users

Families with three-year-olds in long daycare preschool programs will be able to access $500 in fee relief for each child.

The $64m program is committed for the next two years and accompanies a further $22m to support early childhood workers and $20m in capital funds to support new not-for-profit services in high-growth and regional communities.

The government has also committed $20m to the Flexible Initiatives Trial, which will look at programs to extend operational hours and expand access to early childhood education.

$769m has also been committed to build 100 new public preschool, with the goal of creating a preschool on the grounds of every new public primary school built in the state.

Families will be granted $500 fee relief for three-year-olds attending long daycare preschools. Picture: NCA NewsWire / Nicholas Eagar

Toll users

The government will spend $561 million on its toll program, with about 750,000 drivers expected to benefit from the $60 weekly toll cap. When announced, the program was only tipped to be accessed by 55,000 drivers.Residents in Sydney’s north west and west (including suburbs like Kellyville, Baulkham Hills, Greystanes and Moorebank) likely to save the most. In addition, drivers who spend a certain amount on tolls per year will be able to access a discount on their registration.

Social housing users

$224m has been allotted to support homelessness and housing initiatives via the Essential Housing Package, which will go on to support a range of social housing and homelessness services. Among the funding commitments to programs like $70m to fund initial land and site works to deliver home social and affordable homes, $20m for Restart NSW, $15m NSW Housing Fund, and $10m for a Modular Housing Trial.

LOSERS

Renters

While an additional $1 million in funding will be given to renter’s advocacy organisations, there have been no major announcements to help renters with the soaring cost of housing.

EV drivers

Stamp duty costs on electric vehicles will be brought back from January 1, 2024. The funding will instead be redirected to increasing charging infrastructure in regional and metropolitan areas. Over the four years to 2026-27, motor registration duty is expected to bring $821.5 million more than expected, with changes in car prices and the removal of the EV stamp duty exemption tipped to be the main contributors.

Crime kingpins

More than $15 million has been set aside for a Criminal Assets Confiscation Team, to disrupt organised criminal activity. Police Minister Yasmin Catley said the team will “target, investigate and seize the ill-gotten wealth of crime kingpins, seriously disrupting their criminal activity”.

The NSW government has committed $250m for the Powerhouse Museum in Ultimo to undergo a significant heritage revitalisation project.

NSW’s balance sheet

NSW’s debt levels are set to grow to $187.5bn by the end of the 2025-26 financial year, with the state’s interest payments increasing from $2.5bn in 2020-21 to $7bn in 2025-26.

Families

Active Kids and Creative Kids vouchers will be means tested from term 1, 2024, with families able to access two $50 vouchers at the start of term 1 and term 3.

Previously, the vouchers were eligible for all parents, guardians and carers, with households receiving two $100 vouchers every year per child. The First Lap swim program voucher has also been halved to $50 and is in place until June 30, 2023.

The Powerhouse Museum

The famous museum in Ultimo, Sydney that dates back to 1988 will undergo a sizeable $250m heritage revitalisation under Labor.

The figure promised has been reduced from the $481m originally allocated by the Coalition. Instead, the government will use the remaining $231m to fund other projects, like new hospitals and schools.

Originally published as Homebuyers, public workers biggest winners in NSW budget as renters miss out