New South Wales Treasurer Dominic Perrottet handed down the New South Wales state budget on Tuesday, with investment spending allocated towards health, transport and education projects.
There is a notable absence however, with the NSW government hitting the brakes on new measures to improve housing affordability.
The NSW government returned a $3.9 billion surplus this financial year, with average surpluses of $1.6 billion over the four years to 2021-22.
“Over the past 12 months housing cooled more quickly than previously forecast,” Treasurer Dominic Perrottet said in his budget speech.
As a result stamp duty revenue was $1 billion lower than expected, highlighting Sydney’s slower paced market, and is expected to drop by $5.5 billion in the coming four years.
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The NSW budget 2018-19 delivers to families through cost of living relief, school investment and record hospital funding.
NSW budget “winners” include transport with $3 billion allocated towards a new metro train line between Sydney’s CBD and Parramatta.
More than $250 million will go towards construction of the Parramatta Light rail underpinning Sydney’s booming west.
Budget “losers” include renters due to the lack of measures for affordable rental housing.
Sydney Airport has also lost out in this year's budget, with no mention of funding for a new motorway linking Sydney Airport and the WestConnex toll road in the inner west.
By investing in long term transport, health and education projects the budget clearly addresses the state’s growing pains explains Property Council NSW deputy executive director Cheryl Thomas.
“An additional $6 billion over the next four years will deliver 170 new and upgraded schools and an additional $2.3 billion invested in hospitals will help ensure growing communities get the social infrastructure they need,” Thomas said.
“There is nothing in today’s budget to bolster the achievement of the Premier’s objective to see 61,000 houses built annually in NSW to 2021. It is a major challenge to achieve these numbers and requires continued support.”
Due to the softening stamp duty revenue Thomas said the Treasurer should focus on tax reform.
“Every economist agrees that stamp duty is a terrible tax, yet the revenue it produces must be replaced if it is reformed or changed,” she said.
“We have an ambitious and forward-looking Treasurer; this budget proves this – now it’s time to take on some of the tough reforms that will ensure our state economy is not held at ransom by the cycles of the property market.”
