NSW tightens belt with 'must-haves' budget
The NSW government has released 2024/25 budget, with a $3.6 billion deficit forecast.
A major boost to housing and incentives for bulk-billing GPs headline a tight NSW budget dishing out few new handouts and forecasting years of deficits.
Thousands of extra social homes will be built but cash-strapped families face fewer handouts in a budget focused on "must-haves".
Treasurer Daniel Mookhey has blamed GST changes painting his budget books red after $11.9 billion was ripped from state coffers over four years.
It has forced, he says, a more laser-like focus on essentials including a major boost to the state's social housing stock, which peak bodies say is needed to alleviate a spiralling rental market.
Bulk-billing GPs should also become easier to find as peace is declared after a fiercely fought tax dispute.
Energy bill relief will be boosted for low-income households and seniors, taking an extra $65 off annual bills.
But cost-of-living relief is otherwise mostly restricted to efforts to help people buy homes, send kids to preschool or expectations of rising wages.
"This is a careful budget in difficult economic times," Mr Mookhey said on Tuesday.
"Every dollar we spend is designed to make sure the state's fundamentals go well while getting NSW ready for a brighter future.
"We are taking inflationary pressure out of the economy because families have done more than their fair share to slay the inflation dragon."
The state has forecast a deficit of $3.6 billion with hopes of a surplus or two before the 2027 election extinguished by significant slice to NSW's GST distributions.
State debt and interest repayments will also continue to balloon.
"I'm not going to slug NSW families or business because the Commonwealth Grants (GST) Commission slugged NSW," Mr Mookhey said.
The $122 billion budget's housing centrepiece pumps $6.1 billion into building 6200 new social homes, replacing another 2200 and fixing 33,500 homes in dire need of repair.
The sector has demanded 5000 new social homes annually for a decade.
Surplus government land will also be used for another 21,000 homes as part of the biggest social housing investment in NSW history.
More than $520 million will be ploughed into crisis accommodation and homelessness support services.
Meanwhile, the treasurer and health minister will hope to kill three birds with one stone with a novel payroll tax exemption for GPs.
Those bulk-billing 80 per cent of patients in Sydney and 70 per cent in the regions can access the scheme, which should arrest a 10-year low in bulk-billing rates, ease pressure on hospital emergency departments and quell a tax spat with GPs.
Infrastructure spending will top $119 billion over four years, including $13.4 billion for the Metro West rail between Sydney and Parramatta's city centres and $5.5 billion for rail to Sydney's second airport.
Fees will be hiked about 20 per cent for working-with-children checks, NDIS provider checks and boat licences, while insurance levies are expected to increase to fund emergency services.
More landlords and holiday homes owners will also face land tax, collecting $1.5 billion over four years.
An above-average number of Powerball and other lottery jackpots are also a windfall for state coffers.
Workers can expect wage rises averaging 3.75 per cent – at least, should they keep their job.
Treasury forecasts unemployment to rise to 4.5 per cent in the coming financial year.