2017-18 NSW Budget
NSW Budget 2017-18
20 June 2017
NSW Treasurer Dominic Perrottet today delivered the Berejiklian Government’s first budget and his first as State Treasurer, outlining a slew of large investments in infrastructure and services, which he labelled the Government’s “growth contract” with the people of NSW.
Announcing a larger-than-expected surplus of $4.5 billion for the year to date, Mr Perrottet described the Budget as the “envy of the Western World” and confirmed a pipeline of surpluses reaching $12 billion over the coming years, with average surpluses of $2 billion over the forward estimates.
The Budget Papers show the State’s finances continue to be supported by the asset recycling program and a strong housing sector, with growth in transfer duties and land taxes. However, the Treasurer lamented the impact of the State’s falling share of GST revenue, now at a record low, saying the current GST formula effectively robbed NSW of $7 billion over the forward estimates.
The Budget confirms a significant investment in infrastructure of $72.7 billion over four years, with record investment in roads, rail, schools and hospitals. With many major announcements made ahead of the Treasurer’s speech, today’s centrepiece was the commitment to invest $4.2 billion over four years in school facilities to deliver 1,500 additional classrooms to accommodate the State’s growing student population. The Treasurer also announced $720 million has been allocated in this year’s Budget for the upgrade of the Prince of Wales Randwick Hospital, and $1.5 billion toward the upgrade of the Pacific Highway. The Budget also includes $1.3 billion for local infrastructure and community facilities in regional NSW.
Other previously-announced spending commitments include a $1 billion funding allocation for road improvements for Western Sydney, and $21 million for the planning of the new M12 motorway which will connect the Western Sydney Airport to Sydney’s motorway network. A further $2 million has been allocated for the planning of the Outer Sydney Orbital, a proposed 80km north-south motorway and freight rail corridor. The Budget also includes $3.2 billion to continue the delivery and development of the WestConnex project.
The Government’s housing affordability package – one of the Premier’s key priorities – will see the abolition of stamp duty on homes up to $650,000; stamp duty relief for properties up to $800,000; and $10,000 grants for builders and purchasers of new homes under certain value thresholds. Additionally, the package doubles the stamp duty payable by foreign investors and increases the annual land tax surcharge on foreign home owners from 0.75 per cent to 2 per cent.
Mr Perrottet said today’s Budget was about delivering the local and social infrastructure needed to allow communities and families to flourish, whilst continuing to lay the foundations for a stronger future.
- A forecast surplus of $4.5 billion in 2016-17, $800 million higher than forecast last year, and average surpluses of $2 billion through the forward estimates.
- Total Revenue is forecast at $79.9 billion in 2017-18, while expenditure is expected to total $77.2 billion.
- Projected total revenue growth of 1.8 per cent per annum over the four years to 2020-21.
- With projected negative net debt of $7.8 billion, the Government will remain net debt free.
- Gross State Product (GSP) is expected to grow by 3 per cent in 2017-18 and a further 2.75 per cent for the following two years.
- Unemployment is forecast to remain under 5 per cent over the next two years.
- Inflation is expected to remain steady at 2.25 per cent in 2017-18.
- The State’s population is expected to reach 11 million people by 2056.