NSW Budget 2022-23: A focus on women, families and home ownership

22 June 2022

NSW Budget 2022-23: A focus on women, families and home ownership

Treasurer Matt Kean delivered his first budget on Tuesday and the first under Dominic Perrottet as Premier, nine months out from the State Election in March 2023. The Budget had a clear focus on women, home ownership, cost of living measures and the environment. Handing down the Budget on Tuesday, Treasurer Matt Kean declared the 2022-23 NSW Budget one focused on “transformational reform to build a better, brighter future for everyone in New South Wales”.

The Treasurer gave a positive outlook for the future of the NSW economy, acknowledging the State’s economic resilience over the past year. Following a $16.6 billion deficit in the 2021-22 Budget, Treasurer Kean highlighted that this Budget has seen the deficit improve to $11.3 billion. The Budget projects a return to surplus in 2024-25 and expects to see the surplus grow to $1.4 billion in 2025-26. Notably, this surplus will be supported by $2 billion in budget improvement measures over a four-year period including legislative reform to increase Foreign Investor Surcharge land tax and aligning Betting tax and Point of Consumption tax rates at 15 per cent.

Noting the recent hardships faced by the people of NSW with the ongoing impacts of COVID-19 and the floods across northern and central NSW, Treasurer Kean commended the State’s resilience and highlighted its historically low unemployment rate of 4 per cent. NSW public sector workers are also set to receive a pay rise with the Government lifting the wage cap from 2.5 per cent to 3 per cent in the first year and up to 3.5 per cent in 2023-24.

This Budget saw an increased focus on investment in the “people of NSW”, as the Government looks to invest in women, First Nations Australians, and housing affordability. The Government made significant funding announcements in relation to women’s safety, health and childcare. Notably, a $5 billion investment over the next decade will aim to increase the accessibility and affordability of childcare across NSW would see 95,000 women enter the workforce and a $17.1 billion annual boost to the state economy. The Treasurer also outlined a plan to deliver a universal pre-kindergarten year by 2030, as well as $1.3 billion over four years to ensure preschool is affordable to families across NSW.

Following the State Government’s pre-Budget commitment to provide toll relief to NSW drivers, Mr Kean has outlined $520 million will be allocated from the 2022-23 Budget over two years to fulfill this promise. The new relief package is expected to see NSW drivers save up to $750 a year and help ease the growing cost-of-living pressures as inflation continues to rise. The NSW Government has also committed $3.5 billion to rebuild the flood-affected communities across the State, partnering with the Commonwealth Government to support recovery in these areas.

In keeping with Treasurer Kean’s assertion that, “We are an infrastructure government,” the Budget saw a record $112.7 billion investment in the infrastructure pipeline over the next four years. With a particular focus on transport infrastructure and connecting Western Sydney, the NSW Government continues to signal its focus on Western Sydney and regional NSW in the lead up to the 2023 State Election. The Treasurer labelled these infrastructure projects as “the arteries of the nation”, with the increased investments in transport infrastructure facilitating a better-connected state.

Treasurer Kean also affirmed the State Government’s commitment to ensuring NSW residents are given realistic opportunities to own homes, as the Government believes, “when you own your own home, you own a stake in the future of our country.” The Government will deliver a $2.8 billion Housing Package which will include $780.4 million to help single parents, older singles and key workers buy a home through a shared equity scheme. Mr Kean also addressed stamp duty reform with $728.6 million allocated over four years to introduce an option for first home buyers purchasing a home for up to $1.5 million to pay an annual property tax instead of up-front stamp duty.

In line with the State Government’s focus on developing and increasing opportunities in regional NSW, the Budget saw a $1.3 billion increase to the Regional Growth Fund. The Fund will see increased spending on a range of industries to support economies across regional NSW, including increased funding to regional tourism, the State’s critical minerals industry, and regional healthcare. Notably, the NSW Government has committed a record $2.4 billion investment in regional health to ensure the State’s regional communities are given increased access to quality healthcare.

With an overall focus on ensuring the stability and prosperity of the future economy, this Budget outlined a $142 million investment in increasing research and development, as well as $342 million towards ensuring important research materialises into innovative goods and services. Mr Kean highlighted the Government’s $1 billion commitment to building new laboratories and testing-rooms, as the scientific innovation seen in recent years proves to be a vital stream within the State’s economy.

Amid growing power insecurity and increased pressures on the State’s electricity grid, the Budget has seen a strong focus on developing its renewable energy offering to ensure it is on track to fulfill 50 per cent reduction in emissions by 2030 commitment. Mr Kean outlined the Government’s emphasis on solar and wind energy as the “cheapest, cleanest and most reliable energy” to help relieve the State’s reliance on aging and unstable power stations. A record $1.2 billion investment will see NSW establish a Transmission Acceleration Facility, which is expected to promote up to $14 billion of private investment in the State’s Renewable Energy Zones. Furthermore, this investment is projected to aid in fast-tracking NSW’s Electricity Infrastructure Roadmap. Finally, Mr Kean also highlighted a $206 million budget commitment over ten years to reward the State’s farmers who are making efforts to reduce their carbon emissions.

For further information on key NSW portfolio measures, please refer to GRACosway’s detailed briefings:

KEY PARAMETERS IN 2022-23

Projected budget deficit of $11.3 billion in 2022-23.
Net debt to reach $78.1 million.
Unemployment rate at 4 per cent.
Gross State Product (GSP) to grow to 4.25 per cent.
Consumer Price Index (CPI) is 0.5.

FURTHER READING

For more information on the State Budget, or to enquire about our communications, public affairs and government relations services in New South Wales, please contact our Sydney office on +61 2 8353 0400 or [email protected].

Sahil Prasad
Director – Public Affairs
M: +61 401 954 966
E: [email protected]

Jaimi Greenspan
Director, Public Affairs
M: +61 478 963 675
E: [email protected]

Liam Nilon
Associate Director, Public Affairs
M:+61 422 567 650
E: [email protected]