• New South Wales State Budget 2017-18

NSW Treasurer Dominic Perrottet has unveiled a budget “that builds for the next generation” in his budget speech on 20 June 2017.

This year’s budget is said to prioritise investment in the “trifecta” of infrastructure, healthcare and hospitals, as well as education, however, a review of the budgeted spending shows that infrastructure is the key focus of this budget.

Further, as with the 2016-17 budget, the treasurer used his speech to criticise the current model of GST distribution by the Commonwealth government, highlighting that NSW would receive an additional $15 billion over the next four years if it were given a GST share equal to its share of the Australian population.

Headline budget items include:

  • a surplus of $4.5 billion for 2016-17;
  • a forecast surplus of $2.7 billion for 2017-18, with average surpluses of $2 billion per year over the next four years;
  • Gross State Product growth of 2 ¾ percent, with expected growth of 3 percent in 2017-18;
  • negative net debt and no change to the State’s triple-A credit rating; and
  • the lowest unemployment rate in the country for nearly two years.

Overall, the budget is likely to be well received by business and the economic activity generated by the substantial government spending should have a positive impact on mid-size business.