NECA Group

News & Views

18th November 2020

Member Alert: NECA NSW STATE BUDGET 2020-21

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.



  • 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