2020 NSW BUDGET HIGHLIGHTS
Treasurer Dominic Perrottet delivered his fourth budget for the Berejiklian government on Tuesday 17 November 2020, revealing a $16 billion deficit – the first in almost a decade.
Employers and Business
In May 2020, the NSW Government brought forward by one year the increase in payroll tax threshold to $1 million.
This Budget announces a further permanent increase in the payroll tax-free threshold from $1 million to $1.2 million. This will see 3,500 NSW businesses no longer having to pay payroll tax.
The NSW Government will also cut the payroll tax rate from 5.45 per cent to 4.85 per cent from 1 July 2020 for two years.
This budget also commits $472 million to provide small and medium size businesses, which do not pay payroll tax, with a $1,500 digital voucher for the cost of government fees and charges.
The NSW Government will inject up to half a billion in the Out and About program to stimulate spending in the local economy, including restaurants, visitor sites and cultural attractions. Every adult resident will be eligible to claim up to $100 in digital vouchers to spend on eating out and entertainment.
The NSW Government will invest $15 million in partnership with the City of Sydney to help revitalise the Sydney CBD and help business get back on their feet, including through promoting outdoor entertainment and al fresco dining.
The Budget will extend funding of $39.3 million for the Business Connect Program, so more businesses can get the advice they need.
The 2020-21 Budget will continue to invest in an infrastructure pipeline of $107.1 billion to 2023-24 to ensure the delivery of infrastructure in health, education and transport, and create an estimated 145,000 jobs directly or indirectly each year.
Underpinning this stimulus is the $3 billion Jobs and Infrastructure Acceleration Fund, which will support 20,000 jobs and facilitate the following key projects:
- Commencing work on the $385 million St George Hospital Integrated Ambulatory Care Precinct in Kogarah and bringing forward $60 million of the $608 million Sydney Children’s Hospital Network redevelopment in Randwick.
- The roll-out of a $157.8 million LED light replacement program in schools across the State to support a more energy efficient operating environment.
- New public schools in Googong, Murrumbateman and Edmondson Park to meet the needs of growing communities and $180 million to upgrade school facilities throughout regional NSW.
- Stage 1 of the Mamre Road upgrade between the M4 and Erskine Park Road with $28 million to accelerate works as well as $90 million for the Spring Farm Parkway Stage 1 upgrade, ensuring that road infrastructure is keeping pace with growing communities.
- Additional investments in the Fixing Country Bridges and Fixing Local Road programs.
- The delivery of more than 80 infrastructure and local community projects in the regions to support the delivery of health, education and recreational activities.
This Budget will also commit to new stimulus spending across the State for maintenance and shovel ready projects, including:
- $812.0 million for measures to maintain and upgrade social and community housing.
- $256 million for upgrades and maintenance works across National Parks, the Royal Botanic Gardens, Centennial Park, Sydney Olympic Park and the Crown Land portfolio.
- $167.7 million for capital works and maintenance of courts, police stations and corrective services.
The NSW Government will invest $318.6 million over two years in the Skilling for Recovery training package — to help job seekers retrain or upskill, and support school leavers entering the workforce for the first time.
This training program will deliver on the NSW Government’s commitment, under the Commonwealth JobTrainer Fund, to offer more than 100,000 low cost or fee-free training places to individuals in NSW, with a focus on school leavers disadvantaged by the pandemic.
Through the Skilling for Recovery program, the NSW Government will significantly increase the apprenticeship intake across Transport for NSW. It will also provide $80 million in support for apprenticeships and cadetships in the community housing and construction sectors and a further 300 traineeships will be created across NSW public sector agencies.
The NSW Government will invest $57.4 million over four years to create a landmark Trades Skills Pathways Centre to address skills shortages in the NSW economy and support employment for women.
It will also develop new pathways to trades qualifications, deliver more flexible training and make trades a better option for women. The Centre will adopt recommendations from the Productivity Green Paper to find better, smarter pathways to skilled trades that match our modern economy.
To help women return to the workforce, the NSW Government is introducing grants of up to $5,000 for training and support.
The care economy comprises early childhood, community services, social housing, aged care, disability care and personal support. This sector has a large proportion of casual, female workers who have been particularly hard hit by recession.
To assist in revitalising this sector, the NSW Government will provide:
- $17 million for upskilling, mentoring and job matching for people working in the care economy to improve recruitment and retention of care workers and meet the long-term needs of the State’s older citizens, those with a disability and others requiring care.
- Up to 20,000 training places to skill people working in aged care to support the growing needs of the sector and $2.5 million to develop a strategic business case for a TAFE aged care centre of excellence training facility.
- An investment of $337 million over the 2021 school year to deliver intensive tutoring for up to 290,000 students in NSW schools — supporting students to recover lost learning time as a result of the COVID-19 shutdowns in early 2020.
- $120 million to extend the existing free preschool program to the end of 2021. This funding will support around 44,000 three to five-year-olds attending community preschool in over 700 community and mobile preschools across the State.
The NSW Government will invest $29.3 billion in recurrent and capital funding in the NSW health system, continuing its COVID-safe measures including:
- $500 million to support COVID-19 clinics, hotel quarantine, and increased pathology testing and contact tracing.
- $385 million for additional PPE to keep frontline workers safe.
- $30 million for additional emergency department attendances and ambulance calls.
In addition, the NSW Government will:
- Increase the digital capability in the State’s health system.
- Increase support for palliative care services to provide the best quality care and support for those reaching the end of their life.
This Budget will commit $169.4 million over four years to provide vital mental health support to ensure more people can find the help they need.
The NSW Government will continue its investment in education including:
- $18.9 billion investment in recurrent and capital funding for government and non-government schools in 2020-21.
- Broadening the State’s supply of quality teachers by developing a mid-career entry pathway into to teaching for those outside the profession, in partnership with Teach for Australia.
- $2.7 billion to support a highly skilled and adaptable workforce.
- Ensuring universal access to high quality early childhood education services to three- and four-year olds.
The $33 billion transport budget will deliver infrastructure and services for the
- $1.6 billion for bus services in 2020-21 throughout NSW, including regional and metropolitan bus services, school services and funding of new replacement buses.
- $1.1 billion to continue to deliver more trains, more services and more frequent and additional services on the Illawarra, Airport and South Coast lines.
This support includes:
- $9 million in 2020-21 to extend targeted support for food charities.
- $50 million in 2020-21 to establish a one-off, time-limited Social Sector Transformation Fund to help charities adapt and respond to the challenges of the COVID-19 pandemic.
- $29 million across 2020-21 and 2021-22 to extend the Together Home initiative building on the Government’s previous commitment of $36 million to the program.
- $20 million expenses over four years for Closing the Gap in accordance with the National Agreement, and support for the equal participation of Aboriginal communities in priority reforms.
The $1.6 billion Digital Restart Fund (DRF) promotes a whole-of-sector approach to digitisation and service transformation. It also supports job creation by driving productivity and efficiency across the sector. The 2020-21 Budget includes additional investments for the DRF.
The NSW Government will encourage domestic and international business into NSW through payroll tax relief and other support as part of a new $250 million Jobs Plus Program. The Jobs Plus Program aims to create or support 25,000 jobs to 30 June 2022 and will support companies who want to relocate their head offices to NSW or expand their jobs footprint in NSW. It includes payroll tax relief, up to a four-year period, for every new job created where a business has created at least net 30 new jobs.
This Budget will include a major $179.8 million commitment to grow the Trade and Investment network offshore to support NSW businesses in key international markets as well as attracting investment from around the world to support business growth and jobs.
The Budget will also invest:
- $100 million in grants to the Regional Jobs Growth Fund to incentivise businesses in regional NSW to invest, expand their operations, get new customers through the door and create new jobs.
- $300 million over two years to the Regional Growth Fund to deliver an extra new round of economic development and job creation programs such as Stronger Country Communities program.
This Budget will bring relief to sectors hit hardest by COVID-19 — tourism, hospitality and the arts. This includes $175 million in additional funding for investment in new film and TV projects.
The Government will seek feedback from the public on a possible transition away from the current transfer (stamp) duty and land tax system towards a single annual property tax. The aim of this transition would be lower barriers to home ownership, and a boost to long-term growth.
These initiatives include:
- Cutting assessment times
- Optimising industrial land use
- Reforming infrastructure contributions
- Consolidating employment zones
These initiatives include:
- Mid-career teaching pathways
- Skills reforms
These initiatives include:
- Automatic mutual recognition of occupational licences
- Improving the regulatory experience
For help with your business or personal finances call the LT Team on (02) 4926 2300 or contact us