NSW Budget 2023 - 2024
![Kevin Jogin [MPM, CPPP]](/content/images/size/w100/2023/07/Kevin_Jogin_2023.jpeg)
On September 19th, 2023, Daniel Mookhey, the NSW Treasurer, delivered his first budget following the ALP's recent victory in the NSW election. Despite a budget deficit of approximately $8 billion this year, the budget forecasts a surplus within two years. Although small business owners may not discover many benefits in this budget, below, we will highlight the groups that will benefit and those that will not. Additionally, it is worth noting that the budget deficit is expected to decrease over the next two years.
The winners of the NSW 2023 Budget
Teachers are among the winners of the NSW 2023 budget. The government has announced a historic pay rise of up to 12% over the next two years for all public school teachers. The starting salary for first-year teachers will increase from $75,791 to $85,000, and top-of-the-scale teachers will receive an increase from $113,042 to $122,100. Furthermore, the "Innovative Teacher Training Fund" will receive a boost of $20 million to attract the most talented candidates.
The pay rise is designed to address the teacher shortage crisis in the state and attract and retain high-quality teachers. It is also a recognition of the important work that teachers do in educating our children.
In addition to the pay rise, the government has also announced a number of other initiatives to support teachers, including:
- An investment of $1 billion in professional development for teachers
- A new teacher recruitment and retention program
- A reduction in the administrative workload for teachers
The NSW Teachers' Federation has welcomed the budget, but has said that more needs to be done to address the teacher shortage crisis. The federation has called for the government to invest in more teacher training places and to reduce the workload on teachers.
Overall, the NSW 2023 budget is a positive one for teachers. The pay rise is significant and is likely to help attract and retain high-quality teachers. The other initiatives announced by the government are also likely to support teachers in their work.
Great news! The healthcare industry is a major winner of the NSW 2023 budget getting a huge $2.5 billion investment to support its recruiting and retaining healthcare workers. This includes funding for 1,200 new nurses and 500 new rural and regional paramedics. The government has announced a record $33 billion investment in healthcare, which represents a 5% increase from the previous year.
The government plans to invest $13.8 billion in healthcare infrastructure, which includes adding 600 new hospital beds in Western Sydney. Additionally, there will be an expansion of primary healthcare services and mental health services.
The government will invest $1.5 billion in healthcare research and innovation, including funding for new technologies and treatments.
Also to be hiring 500 new paramedics to serve rural and regional areas. And that's not all - healthcare workers will be receiving a 4.5% pay increase, which includes other public sector workers, too. The government will also be providing subsidies for 12,000 students who are pursuing healthcare professions. If you're a new student, you'll receive a scholarship of $4,000 per year, and existing students will receive a one-time payment of $8,000. The NSW government is thrilled to be able to support our healthcare heroes in such a significant way!
The investment in the healthcare industry is welcome news, given the challenges that the sector has faced in recent years. The COVID-19 pandemic has strained healthcare resources, and there is a shortage of healthcare workers across the state.
The government's investment is expected to help address these challenges and improve access to healthcare services for all New South Welshmen.
In addition to the specific investments mentioned above, the NSW 2023 budget also includes a number of other measures that are likely to benefit the healthcare industry. For example, the government is investing in regional NSW, which will help to improve access to healthcare services for people living in rural and regional areas. The government is also investing in education and training, which will help to increase the supply of healthcare workers in the future.
The NSW 2023 budget is a positive one for the healthcare industry. The government's investment is significant and is likely to help improve access to healthcare services for all New South Welshmen.
The recent budget in NSW 2023 has been beneficial for parents, with various initiatives announced by the government to support them. These initiatives include preschool fee relief, where parents of three to five-year-olds in long day care will receive $500 yearly, saving them up to $2,000 annually. Additionally, the government will provide $500 vouchers for before and after-school care for all children in New South Wales, which is expected to save parents up to $1,000 per year. The government will also extend parental leave pay from 18 to 20 weeks, giving parents more time to bond with their new baby and adjust to parenthood. The government will invest in creating more childcare places across the state, making it easier for parents to access childcare and return to work. Furthermore, the government has announced other initiatives such as a reduction in the cost of living and investment in education and training, which are likely to benefit parents. In summary, the NSW 2023 budget is a positive step towards making it easier for parents to raise their children and participate in the workforce.
Small business owners in New South Wales can greatly benefit from the services provided by the NSW Business Bureau. This organization can help navigate complex government regulations related to environmental concerns, workplace safety, and taxes. Additionally, the Bureau can assist with procurement by identifying government contracts and providing guidance on successful bidding. The Bureau can also help secure government grants by providing advice on how to apply and support in writing grant applications. For those looking to expand overseas, the Bureau can provide guidance on market research, export documentation, and trade finance. Other services offered by the NSW Business Bureau include business training, networking events, and personalized advice. If you're a small business owner in New South Wales, it's recommended to contact the NSW Business Bureau to learn more about how they can assist in achieving your goals and finding success.
The recent announcement of a toll cap and toll rebates in the NSW 2023 budget is fantastic news for drivers and businesses using Sydney's toll roads. The toll cap, which is set at $60 per week, will provide much-needed relief for regular motorists. At the same time, the toll rebates will help heavy vehicle operators reduce transportation costs and increase competitiveness in New South Wales.
This initiative is not only beneficial for drivers and businesses, but it is also good for the environment. By promoting the use of sustainable transportation and public transport, the government aims to decrease traffic congestion and air pollution, making the city healthier and safer for everyone.
These measures are expected to benefit different groups of people in various ways. For example, commuters could save up to $2,600 a year under the toll cap, while businesses that operate heavy vehicles could save up to $2,000 a year on tolls through the toll rebates. Families with multiple cars could also save up to $5,200 per year under the toll cap.
Overall, the toll cap and toll rebates are positive steps that will benefit drivers, businesses, the environment, and the economy of New South Wales. It's great to see the government taking action to address the issue of toll costs. However, additional steps need to be taken to make tolls more affordable for everyone.
The Losers of the NSW 2023 Budget
The recent budget has left the business community in NSW feeling disappointed. Businesses were hoping for a reduction in the base payroll tax rate or a regional-specific tax rate, but the government did not take any measures to implement these changes. Moreover, the government has reduced duty relief on corporate reconstruction and implemented a "concessional duty" on certain asset transfers, which will increase the cost of doing business in the state. This move is likely to discourage investment and job creation.
Small businesses in the tourism and events sector are also negatively impacted by the budget. The government has cut funding to Destination NSW, the agency responsible for promoting these industries within the state, making it harder for small businesses to attract customers and expand their operations. Additionally, the government has abandoned two significant infrastructure projects - the Great Western Highway Tunnel and the Northern Beaches Tunnel - that would have improved transportation and reduced travel time, benefiting businesses in those regions. Furthermore, the government has ended the electric vehicle rebate, making it harder for businesses in the renewable energy sector to promote the adoption of electric vehicles in the state. Lastly, the government has put on hold the fast rail plan that would have connected Sydney, Newcastle, and Wollongong, which would have boosted transportation and trade for businesses in those regions. Overall, the budget is a disappointment for the business sector as the government has not taken any steps to reduce the cost of doing business or promote economic growth. It is important to note that the budget is a complex document, and different perspectives exist on who the winners and losers are. The businesses and industries mentioned above are just a few expected to be negatively impacted by the budget.
NSW revenue winners in the upcoming four years:
- Coal industry: $2.7 billion from royalties
- Real estate industry: significant revenue growth from stamp duty and land taxes
- Payroll tax: $2.8 billion increase
- The Star Casino: 35% levy on gaming revenue over $1.125 billion
Over the next four years, the NSW government expects to generate $2.7 billion from coal royalties, $2.8 billion from payroll tax, and an additional $35 million from a levy imposed on The Star Casino. This revenue will be used to fund crucial services, infrastructure, and programs throughout the state.
There has been an increase in demand for coal, resulting in a surge in the coal industry's revenue from royalties. Additionally, the real estate industry is thriving, with high demand for housing and commercial properties leading to increased revenue from stamp duty and land taxes.
The government remains optimistic about receiving more revenue from payroll tax as employment rates and wages rise, indicating that businesses are expanding and hiring more employees.
To ensure that The Star Casino contributes its fair share of tax to the state, the government has imposed an additional levy. This is critical since the casino benefits significantly from the state's infrastructure and services.
Overall, the NSW government expects to generate significant revenue from coal royalties, payroll tax, and the casino levy over the next four years. This revenue will be used to fund essential services, infrastructure, and programs throughout the state, benefiting its citizens.