NSW Budget: Who Gains, Who Misses Out? – Hope 103.2

NSW Budget: Who Gains, Who Misses Out?

The NSW budget is in - and the public service (bigger pay rises!) and families (free swimming lessons!) score big, while new home buyers still don't get a break.

By Michael CrooksWednesday 23 Jun 2021News

The NSW Government has unveiled a big-spending budget, and revealed a more manageable deficit than predicted – thanks to a booming Sydney property market.

Just months ago, NSW Treasurer Dominic Perrottet estimated there would be a $13.3 billion deficit as a result of the COVID-19 pandemic. But through the millions yielded in property stamp duty, the 2021/22 budget shows a $7.9 billion deficit.

“This is a budget which supports and protects our families and communities through record investments in health, education and transport,” NSW Premier Gladys Berejiklian said.

But NSW Labor leader Chris Minns said the spending came from taxes and fines and gave little back to families: “This is a budget that picks the pockets of families across NSW and offers little in return”.

So who are some of the winners and losers?


Who will gain?

Women and families

The Government is pouring $60 million over two years for domestic violence frontline services. Such services will help hold perpetrators accountable and raise awareness of support services for survivors.

Free preschool will also be extended, with families to receive two days of free preschool until the end of 2022.

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Parents will receive five days’ bereavement leave for miscarriages, and be eligible for leave for premature births.

Parents will receive five days’ bereavement leave for miscarriages, and be eligible for leave for premature births.

And families with preschool kids (aged 3 to 6) will score $100 vouchers to go towards swim lessons – a $43 million investment.

“Importantly, every parent should enjoy the peace of mind their child will be safe in and around the water,” treasurer Perrottet said.

“Ultimately, this is the type of support that will not only save people money, it could help save lives.”

Arts and events

The Powerhouse Museum in Ultimo – the one that the NSW Government once wanted to get rid of – will get a $500 million reno under treasurer Perrottet’s budget.

There will also be $220 million for capital works, including funding for the completion of the Art Gallery NSW’s Sydney Modern Project (a new building that will transform the institution into a two-building art museum, almost doubling the existing space).

Electric vehicle (EV) drivers

Time to get that Tesla you always wanted.

In a move to get more people driving EVs, the government is abolishing stamp duty on vehicles that cost less than $78,000 by September this year. Further, buyers will receive a $3000 cashback for the first 25,000 vehicles sold in NSW for under $68,000.

Education

The Government is allocating a whopping $2 billion to building more TAFE campuses and facilities across NSW.

There will also be nearly $200 million spent over four years for a major rewrite of the school curriculum (the first of its kind in 30 years).

There will also be… a major rewrite of the school curriculum (the first of its kind in 30 years).

Health

Child and adolescent mental health services will receive a $109 million boost.

And more than $20 million has been put aside for keyhole cardiac treatments for aortic stenosis (the narrowing of the aortic valve).

Child and adolescent mental health services will receive a $109 million boost.

Nurses, police, paramedics and teachers

The Berejiklian Government will scrap its policy of capping wage rises at 1.5 per cent for those in the public sector. It will now be 2.5 per cent, at a cost of $2.7 billion.

Homeless

The Government will provide 250 packages worth $57 million to give shelter to the homeless and facilitate the delivery of more than 100 new homes across the State.


Who will miss out?

New home buyers

There is nothing in the budget for new home buyers – other than the fact that stamp duty is here to stay.

Sydney’s property boom has made stamp duty the largest taxation revenue source for the Government – even more than payroll tax.

“The worst thing about stamp duty is that it stops many young families from getting into the property market,” treasurer Dominic Perrottet conceded.

“We need to look at better ways of doing things and [state] governments shouldn’t just rely on rivers of gold from volatile taxes.”

“The worst thing about stamp duty is that it stops many young families from getting into the property market,” – NSW Treasurer Dominic Perrottet

Sydney CBD

With the international borders staying shut, and many still working from home, the CBD continues to suffer, with little in the budget to help alleviate the problem. More than anything, the CBD needs a return of tourists and workers.

Families with school kids

While families with children aged three to six are getting plenty of breaks, there’s little for those who have school children or toddlers.

Social housing

The Government said more than 800 new houses will be delivered to NSW over the next two years, but the ABC reports that according to the Community Housing Industry Association of NSW, Regional NSW has a 50,000 deficit in social housing.