New South Wales Treasurer Daniel Mookhey has presented a cautious third budget, marking a shift in focus towards long-term economic reforms while refraining from introducing new cost-of-living relief for residents. Central to the budget are significant investments in housing and essential services, underscored by a landmark billion-dollar initiative aimed at reforming child protection.
The deficit has been reduced to $3.4 billion, a substantial drop from the $5.7 billion forecast for 2024-25 and the $15.3 billion inherited when Mookhey took office in 2021. The government has also restored a cash surplus, indicating it no longer relies on borrowing for day-to-day expenses. While the state’s financial situation remains challenging, Mookhey expresses confidence in measures designed to achieve a surplus by 2026-27, branding the budget as “responsible and sustainable.”
A key focus of the budget is housing, which will see the introduction of a “nation-leading market intervention.” This involves providing a five-year pre-sale finance guarantee to expedite the construction of homes, aiming to facilitate over 5,000 new residences by enabling quicker access to financing for developers.
With the state facing unprecedented natural disasters, funding for emergency services has also seen a significant increase. Allocations include $42.2 million for a new fire station in Badgerys Creek and a $35.9 million boost for Fire and Rescue NSW, reflecting the government’s commitment to supporting first responders.
In a historic move, the budget pledges $1.2 billion towards child protection reform, described as the largest investment in this sector in the state’s history. This will entail a long-overdue 20% increase in foster care allowances and substantial funding for reforming the out-of-home care system.
Investments in education are also noteworthy, with a record $9 billion earmarked for public school infrastructure and significant funding for TAFE, aimed at enhancing skills training in the construction sector. Additionally, access to early childhood education for First Nations children is set to increase with an additional $200.9 million.
Healthcare will benefit immensely, receiving $12.4 billion for infrastructure upgrades, including expansions to hospitals and mental health services. However, Mookhey confirmed there would be no new measures to alleviate cost-of-living pressures at this time, as the focus shifts to longer-term economic strategies amidst declining inflation and sluggish growth.
Residents will still see federal assistance through energy bill relief and homebuyer grants while the state government explores toll road reform instead of extending the existing $60 toll cap.
Overall, while the budget may lack immediate relief for residents, it emphasises investment in foundational services and infrastructure, aimed at fostering economic resilience and addressing systemic issues across various sectors.