Creating and supporting jobs through targeted stimulus measures, billions of dollars for infrastructure and maintenance, tax cuts for business and record health funding are at the centre of today’s 2020-21 NSW State Budget.
The NSW economy contracted by 1 per cent in 2019-20, with negative growth of ¾ per cent projected for 2020-21, followed by a projected return to growth of 2½ per cent in 2021-22.
The Budget will make targeted investments to turbo-charge jobs over the next five years with the unemployment rate projected to fall to 5¼ per cent by June 2024 as up to 270,000 people return to the workforce.
Some of the big announcements in the Budget today include:
A record $29.3 billion health budget;
$107 billion infrastructure pipeline targeting shovel and screwdriver-ready projects;
15 hours of free preschool per week extended to the end of 2021;
$100 worth of Out & About vouchers for every adult resident to inject new energy into the economy;
$2.8 billion in payroll tax cuts including increasing the threshold to $1.2 million to lower the cost of creating jobs;
Businesses that are under the payroll tax threshold will receive $1,500 vouchers to cover government fees;
$2.4 billion into mental health services.
Treasurer Dom Perrottet said nine years of strong financial management had put the Government in a strong position to deploy its fiscal firepower, which would be coupled with record low interest rates, to stimulate a strong recovery through responsible borrowing.
“The risk of long-term economic damage is too great if we do not take action, so we are taking advantage of record low interest rates and a strong balance sheet to turbo-charge our recovery,” Mr Perrottet said.
“That doesn't mean abandoning our firm commitment to fiscal responsibility. This Budget includes measures to chart a course back to surplus by 2024-25, and a strong economic recovery will support that goal.”
The record investment in this Budget sets us up for a prosperous, post-pandemic NSW.