NSW Budget 2024-25: Boost for Social Housing and Essential Workers

18 June 2024

NSW Budget 2024-25: Boost for Social Housing and Essential Workers

NSW Treasurer Daniel Mookhey delivered the second Budget of the Minns Government describing it as a “careful budget in difficult times” as he addressed the NSW Parliament today. The budget focuses on delivering more homes across the state, building and upgrading public transport infrastructure, and significant investment in school infrastructure and education.

Mr Mookhey revealed a $9.7 billion deficit for this financial year and a $3.6 billion deficit for 2024-25. Both figures are significantly different from what was originally forecast in last year’s October Budget and subsequent fiscal updates. Deficits are also expected over the forward estimates, including $2.5 billion in 2025-26, $2.4 billion in 2026-27, and $1.5 billion in 2027-28.

The Treasurer pointed to the Commonwealth Grants Commission’s decision last year to lower NSW’s share of goods and services tax (GST) revenue to 87 cents per dollar as the overarching reason for the state’s deteriorated fiscal position. He said the decision had cost the state $11.9 billion over four years. “If NSW was still getting back 92 cents from every dollar in GST paid in the state, the budget would be returning to surplus next year…we are seeing the hardworking taxpayers of NSW being ripped off by a perverse and unfair distribution model”, Mr Mookhey emphasised. The Treasurer went on to say that the “current GST model is broken”.

To address net debt, which is set to be approximately $97 billion this financial year and increase to $139.5 billion by 2028, the Treasurer announced several separate state consolidated funds will be combined to form ‘OneFund’ with $46.7 billion under the management of TCorp. The move is expected to lower the state’s borrowing levels by approximately $1 billion over five years and aims to spare the next generation from “avoidable debt”, according to the Treasurer.

In line with the budget’s focus on housing, the Treasurer unveiled what he labelled “the biggest single investment in social housing any NSW government has made in the federation’s history”.  Under the $5.1 billion ‘Building Homes for NSW’ package, the Government will aim to deliver 8,400 social homes, with 6,200 of them to be brand new and over half to be exclusively for victims of family and domestic violence. A further $1 billion will be invested to repair and upgrade approximately 33,500 public homes to ease pressure on the state’s public housing system. The Treasurer also revealed that $527.6 million over four years will be invested into emergency housing and homelessness support services.

Surplus government land located near established supporting infrastructure will also be sold to the private sector in order to build 21,000 new homes, the Treasurer revealed, with a further $5 million to be set aside to identify more land for sale. The Budget also provides NSW’s public property developer, Landcom, with  $450 million to build homes for essential workers. NSW Health will receive an additional $200 million to construct homes for health workers, particularly those working in regional health facilities.

Recognising cost of living pressures throughout the state, the Treasurer revealed a Bulk-Billing Support Initiative worth $189 million which will provide complete payroll tax rebates for GPs who meet bulk-billing rates of above 80 per cent in metropolitan Sydney and above 70 per cent across the rest of the state. “We prefer GPs spend more time with their patients than with their accounts”, the Treasurer said.

Opposition Leader Mark Speakman will deliver the Budget Reply on Thursday, 20 June.

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


Key Parameters

  • Net debt is forecast to be $121.9 billion in 2024-25.
  • Unemployment rate at 4.5 per cent.
  • Revenue is expected to grow by $10.7 billion over the four years to 2027-28.
  • New investment in public infrastructure to deliver affordable housing, new and upgraded schools, hospitals, clean energy and transport projects to reach $119.4 billion over four years to 2027-28.
  • Gross state product is forecast to grow by 0.9 per cent to $863.5 billion in 2024-25.

Further Reading


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