NSW Budget 2023-24: Key Portfolio Measures

19 September 2023

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Revenue measures

The Budget outlines additional revenue measures to those announced in the pre-election budget update. After a revision, estimated State revenue has increased by $14 billion over the four years to 2026-27, which the Government attributes to improvements in the property market resulting in higher transfer duty and land tax, and growth in employment and wages driving stronger payroll tax. Additionally, the Government announced a number of measures and corrections which have led to the increased estimated revenue, including increased compliance measures from Revenue NSW, increased coal royalty rates, and a revision to the casino duty rates. In 2023-24, expenditure measures include:

  • $2.7 billion over the four years to 2027-28 through an increase to coal royalty rates from 1 July 2024.
  • $660 million over the four years to 2026-27 by closing off the former Government’s First Home Buyer Choice.
  • $432 million over the four years to 2026-27 through a revision to the casino duty rates.
  • $313 million (comprising $225.5 million in land tax revenue and $87.5 million in transfer duty revenue) over the four years to 2026-27 through investments in the compliance systems of Revenue NSW.
  • $260 million for the removal of the stamp duty exemption and rebate for electric vehicles from 2024.
  • $250.5 million over four years to 2026-27 through a correction to the operation of the land tax thresholds system.

Health

The Government’s commitment to health has a clear focus on rebuilding essential health services, investing in frontline health workers, and addressing accessibility to care across the state. The Government also announced it will deliver a 4.5 per cent wage increase for healthcare workers. In 2023-24, expenditure measures include:

  • $13.8 billion over four years to develop health infrastructure, as part of the Essential Infrastructure Plan. This will create 600 new hospital beds across Western Sydney. $1.3 billion of this funding is allocated to rebuild Bankstown Hospital on a new site.
  • $3.8 billion for health facilities in regional communities to be built and upgraded.
  • $572.3 million over three years to convert 1,112 ‘temporarily funded’ full-time nurses and midwives into permanent roles.
  • $438.6 million over four years to recruit 500 new rural and regional paramedics.
  • $419.1 million to employ an additional 1,200 nurses by 2025-26.
  • $170.8 million to improve salary packaging benefits for over 50,000 healthcare workers.
  • $121.9 million over five years for healthcare student subsides, available to 12,000 students. Scholarships of $4,000 per year will be available to new students, while existing students will receive one-off payments of $8,000.
  • $34.3 million for 20 Women’s Health Centres across the state to provide health and mental health services for women, as part of the Government’s investment to increase women’s access to healthcare.
  • $25 million over the forward estimates for health and wellbeing initiatives for Aboriginal and Torres Strait Islander communities, which includes access to culturally appropriate mental health and cancer treatment services.
  • $19 million to deliver free parking at rural and regional hospitals.

Education

Teachers, students, and trades workers will reap the benefits of Deputy Premier and Minister for Education and Early Learning Prue Car’s commitments to lifting teachers’ wages. While the Government has committed significant funding towards school infrastructure in growth areas, with $9.8 billion committed across multiple measures to upgrade and build new schools and TAFE facilities. In 2023-24, expenditure measures include:

  • $5.7 billion over 10 years to maintain universal preschool access, including $1.6 billion of preschool fee relief for children in community and mobile preschools, and long day care.
  • $4.9 billion over four years for 43 new and 86 upgraded primary and high schools, predominantly in Western Sydney and regional NSW.
  • $3.6 billion under the new Essential Services Fund to support a new bargaining framework and lift the wages of public sector workers.
  • $769.3 million for 100 new public preschools, including a new preschool on the grounds of every new public primary school built in NSW.
  • Launching the Education Future Fund which will deliver $278.4 million worth of permanent literacy and numeracy tutoring programs in primary and secondary schools, and a commitment to convert 10,000 temporary teaching positions and 6,000 school administrative staff into permanent positions, and $20 million to establish an Innovative Teacher Training Fund.
  • $200 million for permanency services and post-care support for children in out-of-home care.
  • $112 million for a VET Review and further TAFE funding.

Transport and roads

The Budget prosecutes the Minns Government’s plan to deliver transport infrastructure without privatisation, and thus does not include asset recycling, which was a feature of previous Coalition Government budgets. The Budget invests $72.3 billion over four years in transport infrastructure to improve connectivity and reduce travel time, with investments in both public transport and roads. Finally, the overall Budget position was impacted by reduced revenue from the dismantling of the Transport Asset Holding Entity (TAHE) over the next 12 months, delivering on a key election commitment of the Minns Government. In 2023-24, expenditure measures include:

  • $13.7 billion* over four years for Sydney Metro West.
  • $7.9 billion* over four years for Sydney Metro – Western Sydney Airport.
  • $4.7 billion over four years for the Western Harbour Tunnel Upgrade.
  • $3.3 billion* over four years for Sydney Metro City and Southwest.
  • $2.4 billion over four years for Western Sydney roads to keep pace with population and employment growth.
  • $615 million for the two-year toll-relief program to introduce a $60 weekly toll cap and truck toll multiplier relief, alongside the Independent Review of Sydney’s motorway network led by Professor Allan Fels AO and Dr David Cousins AM.
  • $390 million Regional Emergency Road Repair Fund to assist regional councils in repairing roads damaged by recent weather events and natural disasters.
  • $315.6 million over four years to establish the Urban Roads Fund to build major roads in metropolitan areas.
  • An additional $300 million over four years to upgrade train stations, combined with existing funds in the Transport Access Program fund and the Commuter Car Parking Program fund, which brings the total funding to $800.7 million.

* Funding subject to recommendations by the ongoing Sydney Metro Review.

Rebuilding and protecting communities

Following a series of natural disasters since 2019, the Government has announced it will invest a total of $4 billion in measures aimed at rebuilding communities affected by extreme weather events. Additionally, the Government has included investments across the State’s emergency services agencies for additional staff, training, and new and upgraded facilities. In 2023-24, expenditure measures include:

  • $3.2 billion investment through the Disaster Relief Account for disaster relief and recovery programs.
  • $299.3 million for Transport for NSW to restore State roads damaged by disasters.
  • $128.3 million to repair critical water and sewage infrastructure damaged in flood events.
  • $121 million for the NSW Reconstruction Authority to support clean-ups and damage assessments, organise safe temporary housing, and rebuild essential services and infrastructure.
  • $60 million for NSW Police to continue the Police Force Academy upgrade in Goulburn.
  • $58 million for flood recovery support, including the Back Home Program.
  • $27 million for new and upgraded facilities for the Rural Fire Service and Fire and Rescue NSW, including an emergency operations centre for the South Coast.

Housing and homelessness

The Government continues to invest in initiatives aimed at addressing the housing crisis, with a key focus on housing affordability, housing supply, and housing quality. The 2023-24 Budget outlines significant investments in housing related infrastructure, such as the Housing and Infrastructure Plan, and housing affordability initiatives such as the First Home Buyers Assistance Scheme. In 2023-24, expenditure measures include:

  • $2.2 billion to the Housing and Infrastructure Plan, including $400 million into Restart NSW and $300 million reinvested in Landcom to accelerate the construction of thousands of new dwellings and associated infrastructure. The Housing and Infrastructure Plan will also include $1.5 billion for housing related infrastructure through the Housing and Productivity Commission.
  • $998.2 million in reduced revenue over four years to 2026-27 through an expansion of the First Home Buyers Assistance Scheme.
  • $610 million for a permanent increase of 1,500 permanent social housing dwellings as part of the Social Housing Accelerator Agreement.
  • $400 million reserved in Restart NSW for the new Housing Infrastructure Fund, to deliver the infrastructure required for additional housing across NSW.
  • $224 million over four years to 2026-27 for the Essential Housing Package, delivered by the new Homes NSW, including $70 million in debt financing to accelerate the delivery of social, affordable, and private homes, and $35.3 million to continue providing housing services for Aboriginal and Torres Strait Islander families through Services Our Way.
  • $70 million interest-free debt financing towards NSW Land and Housing Corporation (LAHC) to accelerate the delivery of social, affordable, and private homes. An additional $35 million to LAHC to support maintenance of State-owned social homes.
  • $60 million for Build-to-Rent trials in the South Coast and Northern Rivers regions.
  • $38.4 million to the Aboriginal Housing Office to ensure First Nations communities have access to new housing supply, upgrades, and maintenance works.
  • $24 million through the Faster Planning Program to establishing the NSW Building Commission to encourage high quality housing and protect home buyers from sub-standard buildings.

Energy

The Budget demonstrates the Government’s commitment to energy security, renewable energy development, cost of living relief for households and businesses, and electric vehicle infrastructure, with $2.2 billion in funding for a range of measures. In 2023-24, expenditure measures include:

  • $1 billion in funding to establish the Energy Security Corporation, which will invest in renewable energy projects to increase overall grid stability.
  • $804 million in funding for the State’s Renewable Energy Zones, to advance renewable generation and transmission projects.
  • $263.5 million to address electric vehicle infrastructure needs, such as chargers.
  • $100 million to increase the size of the Low Income Household Rebate, Medical Energy Rebate, Family Energy Rebate and Seniors Energy Rebate in 2024-25.

Communities

The Government is investing in initiatives and facilities that support parents of young children, Aboriginal and Torres Strait Islander people, and multicultural communities. Additionally, the Government is committed to gambling reform and is moving forward with a cashless gaming trial. In 2023-24, expenditure measures include:

  • $200 million into out-of-home care for children at-risk or in need, to provide permanent services and post-care support.
  • $131.4 million to maintain 28 Closing the Gap initiatives, which were co-developed with the NSW Coalition of Aboriginal Peak Organisations and delivered with local communities.
  • $100 million to gambling reform through the support of a cashless gaming trial, harm-minimisation programs, and gaming reform.
  • $47.8 million into the Multicultural Communities Support Package. This will support the creation of community language schools; a $30 million Multicultural Capital Partnership Fund; the Premier’s Prevention Panel on Racism and Extremism; and a multicultural youth network platform.
  • $39.1 million to the prevention of domestic, family, and sexual violence, and to support the safety of victims.
  • $30 million to the Level the Playing Field Facilities Fund for new and upgraded facilities to empower women’s participation in sport.
  • $17.1 million to Kids Helpline to support the recruitment of counsellors and increase capacity.
  • $15 million to increase safety and security at religious institutions including places of worship, schools, and community centres.
  • $13.8 million to create a Working Women’s Centre and a Future Women’s Jobs Academy to improve the participation and empowerment of women in the workforce.
  • $5 million to the undertaking of a 12-month consultation process with NSW Aboriginal Communities to inform a pathway to Treaty.
  • $3.4 million allocated for the Stolen Generations Keeping Places project as part of the Government’s commitment to Survivors of the Stolen Generation.

For more information about the Budget, NSW Government, or to enquire about our public affairs and government relations services, please contact our Sydney office on +61 2 7912 1500 or at [email protected].

Kirsten Mulley
CEO
M: +61 408 476 470
E: [email protected]

Jaimi Greenspan
Director, Public Affairs
M: +61 432 590 193
E: [email protected]

 

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