News & Views

NECA is pleased to provide members with a snapshot of key measures contained in the NSW state government’s budget delivered by the Treasurer, the Hon Dominic Perrottet MP, on 17 November 2020.

This document is a high-level guide only to those initiatives that are of direct or indirect relevance and/or benefit to businesses in the electrical and communications contracting industry, and to employers, employees and their families. It is not intended to be a complete analysis of the 2020-21 NSW state budget. Links to government information pages are provided where available.

Business and Employment

• $1.6bn for digital reforms in the health, transport, planning and business sectors
• $5,000 return-to-work grants to help boost female participation in the workforce
• Recognition of interstate licences and qualifications so workers from any state can work in NSW.

Skills, Training and Apprenticeships

• $2.9bn investment in vocational education and training:
  • $319m for the “Skilling for Recovery” initiative to help workers retrain or upskill
  • $100m for asset maintenance and replacement at NSW TAFE campuses
  • $57m for a Trades Skills Pathways Centre to help workers have their trade skills recognised and establish pathways for women and mature workers to enter trades
  • $20 million for connected learning spaces and upgraded specialist teaching facilities at 26 TAFE NSW campuses, including regional NSW.

Building and Construction

• $27m over four years to extend the work of the Office of the Building Commissioner
• $15m for more compliance officers to clamp down on substandard apartment buildings
• $812m investment in social housing including the construction of 1,200 new dwellings and upgrades to a further 8,000
• ePlanning and capability building measures to help digitise the construction sector.

Infrastructure and Construction

• $107bn to be spent on infrastructure projects from 2020-21 to 2024-15, including:
  • 200 new or upgraded schools, and 47 new or upgraded hospitals
  • $32bn allocated to building renewable energy projects over 10 years to 2029-30
  • $100m to connect regional areas of NSW to high-quality internet services
• One-third of infrastructure spending will be directed to police stations, roads and sporting facilities in rural and regional areas, including $100m for upgrading and building new sports facilities across New South Wales.

Taxes

• Property buyers will be given a choice between paying the existing stamp duty applicable on property purchases or a new, annual property charge
• A mix of temporary and ongoing payroll tax relief measures to assist NSW businesses:
  • Threshold permanently lifted from $1m to $1.2m, backdated to 1 July 2020
  • Rate reduced from 5.45% to 4.85% for two years, backdated to 1 July 2020
  • $1,500 digital voucher for businesses below the payroll tax threshold to offset other fees and charges
  • Overall relief of up to $34,000 over 2020-21 and 2021-22 for 36,000 businesses.

Family and Mental Health Initiatives

• 15 hours’ free preschool per week extended to December 2021
• $337m to intensively tutor students at risk of falling behind due to interrupted learning
• 100 additional mental health nurses placed in NSW government schools
• $100 in vouchers for every adult in NSW to spend on dining out and entertainment.

Overall Economic Outlook

• Gross State Product (GSP) to fall by 0.75% in 2020-21; unemployment to peak at 7.5% in the December quarter
• GSP to grow 2.5% in 2021-22
• Unemployment to fall to 5.25% by June 2024
• 2020-21 Budget deficit $15.9bn. Budget to return to surplus by 2024-25
• NSW state revenue down $24bn over five years commencing 2020-21
• Net state debt to peak at $104bn in June 2024
• Net state debt to fall below 7% of GSP by 2029-30
• Total NSW government pandemic support measures of $29bn

Additional Resources

• Infrastructure Statement 2020-21 – NSW Budget Paper No. 3
• The NSW Budget 2020-21 – Budget Overview
• Budget Speech 2020-21