Insight into NSW budget 2023

The NSW budget 2023 highlights achievements for workers and acknowledges the financial burden on coal companies as the government aims to improve the state’s financial situation.

Treasurer Daniel Mookhey’s inaugural budget, following Labours victory in the NSW election this year focuses on funding for public services while making cuts to previous government initiatives.

Let’s look at who benefits and who faces challenges in this year’s NSW budget.

House and Infrastructure Plan

At the core of the budget is a $2.2 billion Housing and Infrastructure Plan, which reflects the government’s commitment to addressing the housing crisis in NSW.

Treasurer Daniel Mookhey emphasised that housing affordability and availability remain pressing concerns for residents of NSW.

In his budget speech he stated, “NSW is in the midst of a fierce housing crisis. Rents are rising. Interest rates are climbing. Home ownership rates are falling,” Mookhey said in his budget speech”.

“Demand for social housing is increasing. Homelessness is worsening.

“The next generation fears permanent eviction from safe and secure housing.”

The government has introduced a $2.2 billion plan to build the foundations of a better living environment for NSW residents.

The $2.2 billion Housing and Infrastructure Plan includes:

$1.5 billion to build infrastructure such as roads, parks, hospitals and schools to support the construction of new homes across Sydney, the Lower Hunter, Central Coast and the Illawarra

$400 million reserved in Restart NSW for the new Housing Infrastructure Fund, to deliver infrastructure that will increase housing supply across NSW

$300 million for Landcom to accelerate the construction of thousands of new homes, with 30 per cent affordable housing

The $1.5 billion is to create practical infrastructure around housing developments.

That $400 million Housing Infrastructure Fund is financed from money left over after more than 700 Restart NSW projects were finished.

“Many of those dollars have been idling in the government’s bank accounts for years,” Mookhey said.

In essence, $1.9 billion will go towards ensuring new housing developments across the state have the infrastructure to support residents.

From new city lights, sewage, footpaths, schools, and parks, the treasurer said the funding aims to create comprehensive developments with holistic infrastructure to accommodate the housing crisis.

“You can’t get to the keys to your house if you can’t get the road to your driveway,” Mookhey said.

The $300 million for publicly owned agency Landcom is the government relocating existing funds into a practical source to fast-track the construction of new homes.

It will use “reinvested dividends” to deliver 1409 affordable homes and 3288 market homes by 2039 to 2040.

“30% of the new housing will be for affordable housing, targeting infill sites and government land for development,” budget documents said.

Landcom has “featured heavily in our housing past”, Mookhey said, and it needs to “feature prominently in our housing future too”.

The $300 million is in addition to the $60 million already set aside for Landcom to pilot publicly owned build-to-rent projects in the NSW Northern Rivers and Illawarra-Shoalhaven regions.

Teachers

Teachers are set to be the highest-paid workers in Australia with a “historic” 12% pay rise agreed on by the government following an ongoing dispute between unions and politicians.

The entry-level pay will now be $85,000 for teachers compared to $75,791 previously.

The government also plans to convert 10,000 teachers and 6000 administrative staff to permanent positions, all of whom have accepted the job offers.

There’s also a $20 million boost to the Innovative Teacher Training Fund to “attract the best teachers”.

Healthcare workers

The NSW government is investing a whopping $2.5 billion in supporting healthcare workers.

There’s funding to recruit an additional 1200 nurses and the government will making temporary nurse and midwife positions permanent.

There’s also funding for 500 new rural and regional paramedics.

A 4.5% pay increase for health care workers has been promised too.

New students studying healthcare will be capped at 12k over five years to study and join the profession.

They will also receive scholarships of $4000 per year while existing students will receive one-off payments of $8000.

Parents

Parents of three to five-year-olds are in for a small win with the government trialling a $500-a-year preschool fee relief in long day care.

The budget is also keeping fee relief of $4220 per year for parents and carers of three to five-year-olds in community and mobile preschools.

And there’s $2110 in fee relief for children aged four years and older attending preschool in long day care centres.

The government is fast-tracking 100 new preschools on public school sites.

There are also going to be new primary schools built in the Carter Street precinct, Gables, Nirimba Fields, Tallawong, Westmead South, Gregory Hills and Melonba.

New high schools will be built in Melrose Park, Schofields-Tallawong, Jordan Springs, Leppington, Gledswood Hills/Gregory Hills, Melonba, Edmondson Park and Wentworth Point.

The budget also puts aside funding for upgrades to primary schools and high schools across Western Sydney.

Hospital patients

As hospitals have faced consistent pressures since the COVID-19 pandemic and patients see extended wait times, the government is promising more beds and upgrades to the health system.

There’s funding for 600 more beds in Western Sydney hospitals.

Blacktown and Mount Druitt Hospital will have their bed capacity increased.

Royal Prince Alfred Hospital, Canterbury Hospital and Fairfield Hospital will also be upgraded.

For residents in Rouse Hill, there’s good news for more infrastructure with a new hospital development.

For regional and rural hospital goers, free parking at public hospitals will also be continuing for patients, staff and visitors.

Western Sydney budget

The $60 toll cap the government promised in the election will start from January 1, 2024 to assist more than 700,000 motorists.

There’s also a 33% reduction in the truck toll multiplier on the M5 East and M8.

A two-year trial to reduce the truck toll multiplier is designed to encourage more trucks to use the motorway network and “help address the heavy vehicle traffic that has choked roads and hampered businesses near these toll routes”.

Fine revenues revised

It’s good news if you’re a speeding driver in NSW – although it’s not recommended – as fine revenue has been revised down by $226.2 million over the four years to 2026-27.

Why? Well, the government expects the number of mobile speed camera fines to decrease as warning signage is reintroduced.

Tourism and the arts

The government is also continuing to fund the state’s iconic festivals like Vivid, Mardi Gras and the Sydney Festival.

To encourage families to head to the cities museums, the government is introducing free general admission at the Australian Museum and Museums of History NSW.

Women and girls in grassroots sport

FIFA Women’s World Cup for the state, with $30 million put towards “supercharging” sports facilities for women and girls in grassroots sport.

There has also been $14.5 million put aside for the Football in Schools Program in Western Sydney and $3.7 million for Central Coast infrastructure.

Middle-income families

The Active Kids Vouchers and Creative Kids Vouchers will become a combined voucher of $50 twice per year and is means-tested instead of being available to everyone.

This means low-income families benefit from the vouchers, but middle-income families are scrapped from the benefits.

Drivers

Although there’s the $60 weekly toll cap win, the treasurer has taken a red pen through the previous government’s infrastructure projects.

The Great Western Highway Tunnel and the Northern Beaches Tunnel have been scrapped.

For anyone wanting the ease of technology for Sydney parking, consider the Park’nPay app unfunded and scrapped.

Electric vehicle tax breaks have also been cut.

Coal companies

Mookhey described the budget as finding extra cash under the sofa and coal companies are at the front of that as the government increases royalties for the first time in 10 years.

Now, royalties are expected to rake in $2.7 billion over four years.