Hawker Britton Occasional Papers and Media

NSW Mini-Budget

NSW Treasury

April 2004

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NSW ‘Mini Budget’

This paper provides a summary of the NSW Government ‘mini budget’ released on 6 April 2004.The mini budget is a precursor to the full budget announcement to be made on 22 June 2004.

It is worth noting that the mini budget is a ‘budget’ in name only and has more of the characteristics of a series of policy announcements than a budget (ie, it does not contain the range of fiscal and economic reports required in a full budget).

This occasional paper covers major changes to the revenue, expenditure and savings measures, as outlined in the Treasurer’s speech to the Legislative Assembly.

The information in this paper is not exhaustive and while every effort has been made to ensure accuracy at the time of print – Hawker Britton does not guarantee the accuracy of all information.

More detailed information A number of papers were released with the mini budget.

If you would like to receive one or all of these via email, please email Olivia Miller: omiller@hawkerbritton.com.au

Revenue Measures

Land:

Under a new system, to be introduced progressively from 1July 2004, Crown land will be leased at market rates. Under the new system perpetual leases will be encouraged to convert their leases to freehold by purchasing the remaining portion of the State’s interest in the lease. Perpetual leaseholders will have two years to convert to freehold, before market rents apply.

Coal Royalties:

From 1 July the NSW Government will abolish flat rate royalties for coal and replace them with ad valorem (value based) royalties.

The existing prescribed rate of $1.70 per tonne of coal produced –which has not been increased since 1981 – will be replaced with a system which will closer match the rate of royalties with coal costs.

The rates will be as follows:

This compares with a flat rate of 7% in Queensland.

Expenditure Measures

Transport:

$300 million for passenger rail, including:

  1. $1billion over 6 years for five rail clearways, creating 14 ‘sectorised’ rail lines
  2. $1.5billion over six years for an extra 498 suburban carriages.

Education:

Increase of funding by $356 million, which will fund the recent pay rise to teachers in full and assist the roll out of smaller class sizes, including the recruitment of an additional 800 teachers.

Health:

Additional funding of $572 million in 2004-05 has been allocated to NSW Health, with an extensive capital works program in the next year valued at $600 million. Key aspects are listed below.

Community Services:

Transport:

Health:

The size of NSW Health’s administration services unit will be reduced, including further cuts to the North Sydney head office of NSW Health. These cuts are in line with the Government’s move towards shared services provision to assist in the removal of service duplication.

Savings from Portfolio Changes:

1. Department of Primary Industries

Following last the creation of the Department of Infrastructure, Planning and Natural Resources, the NSW Government has continued its consolidation of agencies responsible for regulating and supervising land.

A new super-ministry, the Department of Primary Industry will be created by the amalgamation of the Department of Agriculture, NSW Fisheries, the Department of Mineral Resources and State Forests. It is understood that pending the appointment of a new Director General, the Department will be managed by a committee of the three existing Directors General and the office of the senior minister, Ian Macdonald.

The Department of Environment and Conservation will be required to provide additional support to and work more closely with the Catchment Management Authorities, DIPNR and the new department of Primary Industries.

The Waterways Authority will be reformed and its land management functions moved to the Department of Lands

2. Department of Women

The Department for Women will be abolished and replaced with an Office of Women to be located within the Premier’s Department.

Closure of Overseas Government Offices:

Other Savings:

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