NSW BUDGET 2021-22

Government

Updated June 23rd 2021

Designed to support families, this “budget with a heart” has a strong focus on supporting NSW residence as a reward for doing so well during the pandemic.

NSW Economic Snapshot;

  • NSW records a $7.9 billion deficit in 2021-22
  • 300k jobs lost during the pandemic have been regained
  • A $446 million surplus is expect for the state in 2024-25

Here’s where some of the extra revenue has come from;

  • $9.37 billion in stamp duty revenue – $1 billion more than expected due to the state’s property market
  • $21 billion on GST and
  • Almost $3.3 billion last financial year from gambling taxes, near $2.2 billion from poker machines alone

In delivering his fifth budget Treasurer Dominic Perrottet’s said NSW is looking to the future from “a position of strength,” daring to “do things differently” with some of the following sectors benefitting most.

Winners include;

Families

  • Families will receive $100 vouchers for swimming lessons being offered to every pre-school child aged three to six.
  • The $44 million program is among $6 billion in rebates, concessions and cost of living perks.
  • Free preschool for NSW families will also be extended, with 15 hours a week funded next year, saving families up to $4000 a year per child in 2022.

Electric Vehicle Drivers

  • Stamp duty will be abolished on electric vehicles for electronic cars bought by September this year and cost less than $78,000
  • A $3000 rebate will be given to the first 25,000 vehicles sold in NSW for under $68,000.
  • Part of an ambitious $500 million plan for battery-powered cars to constitute more than half of all new car sales by 2031.

Public Servants

  • For nurses, police, paramedics and teachers will scrap its controversial policy of capping public sector wage rises and will revert to its regulated wages cap of up to 2.5 per cent.
  • Almost 246 paramedics will also be upskilled for intensive care services as part of a $214 million spend to NSW Ambulance, which will move its headquarters from Rozelle to Homebush.

Women

  • Women in the public service who suffer a miscarriage or stillbirth will be granted five days of paid leave.
  • Women and girls will get a much-needed boost to change rooms at community sports facilities, part of $200 million in upgrades to equipment, playing surfaces and lighting and local sporting facilities.

Domestic Violence Services

  • Frontline services helping women and children experiencing domestic and sexual violence will be given an extra $60 million over two years.
  • $32.5 million over four years to expand the Staying Home Leaving Violence program, which helps families stay in their homes while they are experiencing or recovering from domestic abuse.
  • $4.9 million is going to St Vincent De Paul to provide crisis accommodation for women fleeing violence.

Sydney CBD Businesses

  • Introducing “Thank God it’s Friday”, the latest $50 million government voucher scheme will be targeted at businesses in the Sydney CBD, with 500,000 people issued four $25 vouchers for use towards dining and entertainment experiences. As the name suggests, the vouchers can only be used on Fridays.
  • City hotels are also in line for a voucher boost with $100 on offer to NSW residents to use on a Sydney winter getaway in the CBD.

Kids in Regional NSW

  • More than $6 billion has been committed to regional NSW for new schools, technology and support staff and teachers. Nine new and upgraded schools have been given the green light for funding from Wee Waa, to the Hunter, to Bomaderry and Murrumbidgee.

Renewable Energy Projects

  • Solar, wind and storage projects are at the centre of $380 million to help expedite investment in renewable energy zones, which will go towards construction of renewable energy plants in the state’s central-west, New England, Riverina, Hunter and Illawarra regions.

School Teachers

  • $196 million being allocated to develop a new school syllabus, which will include online capabilities allowing teachers, parents and students, saving teachers valuable time thumbing through heavy printed syllabuses

Events Sector

  • The government will attempt to woo major arts and tourism events to NSW with a $200 million injection over four years.
  • Sydney’s revellers are set for something special, as the plan will include closing the Cahill Expressway to traffic for a week-long party between December 31 and January 6. Concept includes musical acts, pop-up food stalls and bars.

Homeless

  • Rough sleepers will be helped into housing and connected to tailored supports with $57 million to provide 250 packages to house the homeless and help community providers to deliver more than 100 new homes across the state.

Children & Youth

  • Almost $110 million will be committed to fund five specialist mental health response teams for child and adolescent mental health.

Construction Workers

  • There will be $30 billion to go towards infrastructure in the next year alone, with the government anticipating 4600 jobs to be created for the Sydney Gateway and the upgrade of the Warringah Freeway.

Missing out is the CBD Economy

  • Pre-COVID, CBD business activity made up almost 21% of the state economy – $130 billion of output in 2019, yet with no sign of international borders opening anytime soon, the city economy’s recovery is expected to remain restricted. And with remote working levels remaining at 69%, empty offices are set to be a staple for some time.

For full details click here.

In the meantime, if you have questions, concerns or want to discuss some of the ways you can protect your business now, call your CIB Advisor anytime.