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