The New South Wales (NSW) Treasurer, Gladys Berejiklian, delivered the 2015-16 State Budget on 23 June 2015. In her opinion, “the State is buzzing”.

The headline items from the budget are:

  • the State’s Triple-A credit rating has been preserved
  • there is an underlying $713 million surplus
  • economic activity in NSW has grown faster than in any other State
  • record low interest rates and rising wealth have boosted household consumption
  • the NSW unemployment rate has been at or below the national average for 18 of the last 19 months and is expected to fall to 5.5% by the June 2017 quarter

Major announcements

Major announcements from the budget include:

  • an investment of $68.6 billion over four years in building infrastructure
  • a record investment of $19.6 billion in 2015-16 to boost the health system  
  • an investment of $12.4 billion in 2015-16 for schools and early childhood education
  • an investment of $2.3 billion in 2015-16 into the vocational education training system
  • funding and incentives of $678 million over the next four years to support 150,000 new jobs
  • allocating $400 million of funds from the windfall tax revenues into the Housing Acceleration Fund to assist with the supply of new housing and housing affordability

Social responsibility

Social responsibility measures from the budget include:

  • $1.7 billion to protect the State’s National Parks, preserve significant heritage assets and ensure local communities are protected from pollution and environmental harm
  • $6.1 billion (a 7% increase) for family and community services
  • $200 million to support children in out of home care
  • $148.5 million over four years on specialist programs and services to prevent and respond to domestic and family violence
  • $100 million over four years for the Policing for Tomorrow Fund, which will make crime-fighting 'high-tech' and deliver enhanced mobility for officers

State taxes

State taxes measures from the budget include:

  • an investment of $27 million over four years to create a Small Business Employment Incentive Scheme that will provide a grant of up to $2,000 to non-payroll tax paying small businesses when they hire new employees from 1 July 2015
  • expansion of the Jobs Action Plan for a further 4 years, to provide businesses with a payroll tax rebate of up to $5,000 per new employee
  • continuation of the First Home Owner Grant which offers $15,000 to eligible first home owners purchasing a new home or building a home

Tony Windle, National Head of Indirect Tax, E tony.windle@au.gt.com T +61 7 3222 0381