NSW 2010 Budget
NSW Budget 2010-11
NSW Treasurer Eric Roozendaal today handed down the 2010-11 NSW Budget.
The Budget’s key numbers reflect an overall improvement in NSW’s fiscal position compared to 2009.
The 2009-10 Budget projected a deficit of $990 million, falling to $116 million for 2010-11 before a return to surpluses from 2011-12 onwards. As a result of the stronger than expected growth during 2009, last December’s NSW mid-year Budget review reforecast the NSW Budget to return to surplus the coming financial year– one year earlier than expected.
These expectations have been confirmed by today’s announcements. The NSW Budget is back in surplus, with a $101million positive figure announced for this financial year. The surplus is expected to rise to $773m in 2010-11.
The NSW economy is expected to grow by 3.75% this financial year and 3.5% in the year ahead.
Projected Budget Positions
|2009-10 $m||2010-11 $m||2011-12 $m||2012-13 $m|
|December 2009 Half-Yearly Review||-1,020||872||554||528|
Key spending announcements
- The planned payroll tax cut from 5.65 per cent to 5.5 per cent will be brought forward to July 1, 2010 from its scheduled implementation date of January 1 2011.
- A further cut will be implemented on January 1 2011, taking the NSW payroll tax rate to 5.45 per cent.
- The payroll tax threshold will increase to $658,000 from July 1 2010 –any business with a payroll below this level does not pay payroll tax.
- In 2010-11 $18.6 million is being invested in the Payroll Tax Incentive Scheme, supporting businesses with rebates up to $144,000 each to boost jobs and encourage business expansion into regional areas.
- Stamp duty will be cut to zero for off-the-plan home purchases worth up to $600,000 – a saving of up to $22,490 – this will only apply prior to any construction commencing on house and land packages or new apartments.
- Stamp duty will be cut by 25 per cent for people buying a newly-constructed home worth up to $600,000 – a saving up to $5,623.
- The 25 per cent stamp duty cut applies to home purchases made at any time during the construction period, or at completion.
- First home buyers will also be eligible for these stamp duty cuts, giving them total benefits of up to $29,490
- Stamp duty for people aged over 65 will be cut to zero when they purchase a newly-constructed home worth up to $600,000 – a saving up to $22,490.
- $1.2 billion of additional funding from the Commonwealth over four years to support new higher standards for emergency departments and elective surgery;
- increases of $536 million for acute inpatient services, $117 million for emergency services and $101 million for rehabilitation and extended care services;
- $438 million for continuing major redevelopments at the Liverpool, Narrabri, Nepean, Orange/Bloomfield and Royal North Shore hospitals;
- planning and commencing projects at Dubbo, Lockhart, Tamworth, Wagga Wagga and Wollongong hospitals and stage 1 of the Northern Beaches redevelopment;
- new mental health facilities at Hornsby, Nepean and Prince of Wales hospitals;
- commencing three new regional cancer centres at Gosford, Nowra and Tamworth, and expanding the facilities and services at the Illawarra Cancer Care Centre and at Coffs Harbour, Lismore and Port Macquarie in collaboration with the Australian Government; and
- expanding the Multi-Purpose Services and HealthOne facilities in rural and regional areas including Balranald, Coonamble, Cootamundra, Corowa, Eugowra, Gundagai, Manilla, Pottsville, Quirindi, Rouse Hill and Werris Creek.
The Budget includes funding for the Metropolitan Transport Plan: Connecting the City of Cities. $22.3 billion will be available over the next four years for major projects including:
- $1 billion to commence work on the Western Express Rail Service;
- $1.7 billion to continue the South West Rail Link, due for completion in 2016;
- $230 million for extensions to the Sydney light rail network;
- over $1.2 billion for bus priority measures and new bus depots along with over 1,300 new buses;
- $6.7 billion for passenger rail projects including the Rail Clearways program and 626 state-of-the-art carriages currently on order;
- $56 million in cycleways to complete missing links;
- $450 million for commuter car parks and transport interchanges; and
- $10.6 billion investment in the road network including over $7.3 billion for country roads with $3 billion for the Pacific Highway, $750 million for the Hume Highway, $680 million for the Great Western Highway and $500 million for the Princes Highway.
This Budget provides:
- grants for rail of $3.3 billion including $1.6 billion toward operating costs of passenger services and $1.3 billion for capital investment and development of the rail network;
- more than $1.1 billion for bus services. To meet the demand for new and more frequent services 300 new and 206 replacement buses will be purchased for $323.2 million;
- a record $4.7 billion for roads to build and maintain critical road infrastructure and improve road safety including over $3.5 billion will be directed to rural and regional roads; and
- $55 million to accelerate work on the construction of the Sydney light rail network from Lilyfield to Dulwich Hill and on preliminary works for the Haymarket to Circular Quay line.
- $2.2 billion to build new roads;
- $1 billion for maintenance of the state’s existing roads;
- $336 million in improvements to the traffic network;
- $871 million invested on the Pacific Highway – representing almost 19 per cent of the entire NSW roads budget;
- $345 million to continue duplication of dual carriageway of the Sydney-Melbourne Hume Highway.
Police, Justice and Emergency Services
- $69.8 million to plan, build and upgrade 20 police stations throughout New South Wales;
- $66.4 million to upgrade police technology, communications and other equipment and finalise the purchase of a new police helicopter;
- more than $1.1 billion for courts and court support services, including $21.9 million to upgrade courthouses and $10.7 million for continued development of the Joined Up Justice and Legal eServices systems;
- over $1.3 billion for custodial and rehabilitation services, including $103.3 million for extra accommodation at Correctional Centres and Juvenile Justice Centres; and
- almost $1 billion to provide emergency support services, including training and equipment for permanent officers and more than 80,000 volunteers, 200 new and refurbished tankers for Rural Fire Service units around New South Wales and regional bushfire mitigation and fire protection works.
Education and Training
- $670 million over four years under the Productivity Places National Partnership program to deliver an additional 175,000 training opportunities for job seekers and existing workers in skills shortage areas;
- $88 million over four years for the Learn or Earn initiative to provide extra training opportunities for young people and boost apprenticeships, including delivering 26 Trade Schools; and
- $78 million over four years towards the Connected Classrooms initiative to expand technology-based learning in public schools with interactive whiteboards, video-conferencing facilities and online learning tools.
- $538.3 million for the completion of 4,690 dwellings and $26.8 million for the conversion of bed-sitters into appropriate modern accommodation under the Australian Government’s Economic Stimulus Plan, and $243 million for the commencement of 1,416 new dwellings and completion of 568 dwellings under the ongoing capital supply program for social housing.
Environment, Climate Change and Water
- $222.6 million from the Climate Change Fund for climate change mitigation and energy saving initiatives including measures for households (such as rebates for rainwater tanks and climate-friendly hot water systems) and schools (such as energy-efficient lighting), support for six large-scale renewable energy generation projects and programs boosting the existing efforts of industry, government and households to use water and energy more efficiently;
- $21.5 million from the Clean Coal Fund to undertake research and develop clean coal technologies; and
- $222.6 million for managing the State’s water resources, including collaborating with the Australian Government on implementing the Murray Darling Basin Agreement. Delivery of water efficiency projects under the Agreement has now begun.