What’s in this budget for business – payroll tax relief, record infrastructure investments and housing stimulus.
Since the NSW Coalition Government was elected in 2011 we have faced significant fiscal challenges to rebuild the NSW economy.
We inherited a forecast net state debt of $55 billion for 2014, a $30 billion infrastructure backlog and the risk of losing our AAA credit rating potentially costing $3.73 billion over the next 10 years.
Over the past two years, targeted fiscal reforms include a 2.5% cap to public sector wages, a reduction of workers compensation premiums and labour expense caps to reduce government head offices.
Key initiatives include payroll tax rebates for new staff, targeted first home-owner grants and innovative ways to raise finance for vital infrastructure.
These reforms have paid dividends for NSW with the state recording the second strongest economic growth rates of all states behind WA, the second highest consumer confidence of all states and the creation of over 128,900 new jobs. NSW created more jobs than any other state after a decade of NSW recording the slowest jobs growth of any state.
The Treasurer describes our latest budget as a ‘trifecta result’ - record investment in infrastructure, reduction of state debt, and keeping expense growth less than revenue growth.
Big infrastructure winners include $4.1 billion for the North West Rail Link, $1.8 billion over four years for WestConnex, $1.2 billion to upgrade health infrastructure, $1 billion for Western Sydney Growth Roads Program, $899 million for new Waratah trains, and $400 million for the F3 to M2 missing link.
Construction is a key driver for the economy, so we have extended the $15,000 first home owners grant for another two years. Additionally, the release of 42,900 new homes sites will be accelerated through a $141 million housing package.
Employers will benefit from an increase in the payroll tax threshold from $689,000 to $750,000, meaning 1,300 fewer businesses will have to pay payroll tax and the remaining will have their tax bill cut by an average of $3,000 per annum.
The NSW Government, through responsible fiscal management and a willingness to make the tough decisions, has laid a solid foundation for the continued growth of NSW.
We can now start to turn the corner and be confident that with continued and measured analysis and delivery we can move towards a more secure and prosperous future for our state.
Investing in infrastructure is so critical to the success of Western Sydney businesses, providing productivity boosts across the region, and it is fantastic to see such a strong commitment to transport, roads, jobs and housing in Western Sydney.
The last word should go to the Treasurer, Mike Baird, who said in his budget speech “The tough decisions we have made are beginning to bear fruit. Now we will accelerate the delivery of improved services and infrastructure while protecting the vulnerable.”
