NSW Budget 2023-2024
On 19th September, 2023, NSW Treasurer Daniel Mookhey handed down his first budget following the ALP’s win in the NSW election earlier this year. The budget forecasts a return to surplus within two years despite a budget shortfall this year of approx $8 billion. Not much here for small business owners, however we highlight “winners” & “losers” here:
- Will receive a 12% pay rise
- Entry level pay will increase from $75,791 to $85,000
- $20 million boost to the “Innovative Teacher Training Fund” to attract the best
- $2.5 billion to be invested in supporting workers in this sector to fund:
- Additional 1,200 nurses and convert temporary nurse and midwife positions to permanent
- 500 new rural and regional paramedics
- 4.5% increase in pay for health care workers – also applied to other public sector workers
- Subsidies to 12,000 students to study to join the profession
- New students to receive scholarships of $4,000pa – existing students will receive a one-off payment of $8,000.
- Various financial fee relief payments for parents of pre-school children
- Establishment of the “NSW Business Bureau”, a body which will assist small businesses engage with government regulation, procurement pathways, and grant applications. The body will also assist small businesses as they attempt to enter overseas markets.
- $60.00 toll cap per week (pre-election promise) will commence 1st January, 2024
- Spend above $60 pw will be claimed back quarterly from Services NSW
- Toll rebates for heavy vehicles commencing 1st January, 2023 using M5 East and M8 tunnels. Rebates equate to one-third of trip cost.
- calls to reduce the base payroll tax rate, or add a regional-specific tax rate like in Victoria, were not forthcoming
- Reduction in duty relief on corporate reconstruction. Transfer of assets previously exempt from transfer duty under certain circumstances. From 1st February, 2024, a “concessional duty” charged at 10% will be payable
- Cuts to Destination NSW, the government agency tasked with promoting tourism and events within the state — and, by extension, supporting the small businesses that operate in and around the sector.
- The Great Western Highway Tunnel and the Northern Beaches Tunnel have been scrapped.
- The electric vehicle rebate has been scrapped (from 1st January, 2024), however funds will be invested to speed up related infrastructure around the state (ie charging stations)
- Fast rail between Sydney, Newcastle & Wollongong has been “shelved”
Show me the money!!
- Principally increased royalties (2.6%) from the coal industry - $2.7 billion over 4 years
- Booming property market – substantial revenues through growth in stamp duty and land taxes
- Payroll Tax revenue to increase by $2.8 billion over the four years to 2026-27 driven by increased employment and higher wages
- Casino duty rates – additional levy of 35% on gaming revenue if the casino (The Star) earns more than $1.125 billion in 12 months,