Economy
What you should know: Prices in Sydney will continue to grow by 4.75 per cent this year,above the previous forecast of 4.25 per cent,before moderating to 2.5 per cent by 2026. While economic growth will slow,the state’s economy is expected to be bolstered by migration-driven population growth of 1.4 per cent this year and a resilient labour market. The NSW Treasury’s forecasts assume one more cash rate increase by the Reserve Bank in the coming months,with a reversal not expected to occur until late 2024.
Debt and deficit
What you should know: The surprise surplus would end five consecutive deficits of $7 billion or more for NSW,but getting the budget back in the black depends on the continued resilience of the NSW economy as it faces 12 interest rate increases since May last year. NSW Treasurer Daniel Mookhey has warned that the state’s finances faced “severe challenges” due to high inflation and rising interest rates.
Housing
What you should know: Housing affordability is a centrepiece of Mookhey’s budget with measures to boost supply,reforms to assist renters and support for first home buyers through stamp duty concessions. It comes amid a 28 per cent increase in dwelling prices in Greater Sydney from 2020 to 2023,and a 23.2 per cent increase in rents across the state.
Families and cost of living
What you should know: While the government will give motorists a break and charge Opal commuters weekend prices on Fridays,Opal fares will be increased across the network. Meanwhile,parents of three-year-olds in long daycare preschool programs will receive $500 per child,per year,in fee relief.
Transport and infrastructure
What you should know: The fast-tracked transition of TAHE to a non-commercial corporation comes after the Minns government was told it would have to inject more than $600 million to prop up the scandal-ridden entity if it remained a state-owned corporation. While the government has made efforts to tighten its belt,it has maintained its focus on connecting western Sydney to more transport options including $7.9 billion to deliver the Sydney Metro-Western Sydney Airport.
Environment and energy
What you should know: NSW faces the challenge of ensuring electricity supply remains reliable as it transitions away from coal generation. The budget will inject an additional $804 million into a Transmission Acceleration Facility aimed at connecting the state’s renewable energy zones to the grid sooner.
Health
What you should know: In an effort to stem the exodus of nurses,doctors and paramedics from the public system,the NSW government has invested in staff retention measures including a $3500 flat pay rise for health workers. It has also aimed to improve access to healthcare through investments in western and regional NSW,as well spending $100 million on women’s health. Overall,the government expects to spend $13.8 billion for hospitals and health facilities over four years.
Education
What you should know: A new $3.6 billion essential services fund will aim to improve services in education and health,partly through delivering higher wages for essential workers. It has also focused on increasing available early childhood education places,with another $1.6 billion set aside for expanded preschool fee relief. Overall,it expects to increase spending on schools and education facilities to $9.8 billion over four years.
Community and arts
What you should know: Several cuts have been made to programs as the government aims to repair the budget deficit and prioritise areas including health and education. However,it has maintained spending on initiatives such as $131 million on progressing 28 Closing the Gap initiatives,$380 million on measures aimed at improving gender equality and $3.9 billion for support people with a disability.
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