Latest news with #Mookhey
The Age
3 days ago
- Business
- The Age
NSW Labor's biggest Achilles heel? Hubris
When NSW Treasurer Daniel Mookhey heard that his third budget was widely being described as boring, it would have been a relief. Mookhey is known for his colourful frames, eclectic music taste and a penchant for the quirky, but he would take 'boring' over most other descriptors that could be thrown at his budget. No big cash splashes, no reckless spending. Indeed, Mookhey even forecast a slim surplus (yes, just $1 billion) in coming years – a lofty promise that may well not materialise. It's contained in the budget papers, nonetheless. But also in those budget papers is a clear signal that NSW Labor's pious stance in opposition is starting to take a different turn since it found itself in power. Hubris has started to seep into NSW Labor as it settles into government. Here's a good example. In opposition, Labor boasted it would stop a treasurer from spending on a whim. The Coalition government had seen pork-barrelling, in the words of former premier Gladys Berejiklian, as 'not illegal'. It pork-barrelled to curry favour with voters. Labor vowed to do things differently, as a matter of principle. A Labor government would abolish a little-known but long-existing 'Advance to the Treasurer', which allowed for a pot of money to be set aside for whoever held that office to deal with unforseen expenses. 'The Labor Party will promote stronger budgeting and clean up imprudent ad hoc spending,' the ALP boasted in its election costing request to the Parliamentary Budget Office, 'by eliminating the Advance to the Treasurer.' Loading Scrapping that advance, according to the budget office, would save $50 million, although it warned that it would 'reduce the government's capacity to undertake unexpected discretionary expenditures'. Axe it and the government would need to find savings elsewhere in the budget. In the Coalition's final budget, delivered by then-treasurer Matt Kean, $120 million was set aside in the treasurer's advance for state contingencies, although it was not all spent before they were turfed from power. Labor stuck to its word, and there was no advance in its first budget. By its second budget, however, an eerily similar fund emerged in its appropriation bill. Called a ' special appropriation for the treasurer', $322 million was set aside in last year's budget for state contingencies, essential services and 'expenditure related to the government's election commitments'. No specifics but a big pot of money. In this budget, that has ballooned to $868 million, again to be used on such things as election commitments.
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
NSW Labor's biggest Achilles heel? Hubris
When NSW Treasurer Daniel Mookhey heard that his third budget was widely being described as boring, it would have been a relief. Mookhey is known for his colourful frames, eclectic music taste and a penchant for the quirky, but he would take 'boring' over most other descriptors that could be thrown at his budget. No big cash splashes, no reckless spending. Indeed, Mookhey even forecast a slim surplus (yes, just $1 billion) in coming years – a lofty promise that may well not materialise. It's contained in the budget papers, nonetheless. But also in those budget papers is a clear signal that NSW Labor's pious stance in opposition is starting to take a different turn since it found itself in power. Hubris has started to seep into NSW Labor as it settles into government. Here's a good example. In opposition, Labor boasted it would stop a treasurer from spending on a whim. The Coalition government had seen pork-barrelling, in the words of former premier Gladys Berejiklian, as 'not illegal'. It pork-barrelled to curry favour with voters. Labor vowed to do things differently, as a matter of principle. A Labor government would abolish a little-known but long-existing 'Advance to the Treasurer', which allowed for a pot of money to be set aside for whoever held that office to deal with unforseen expenses. 'The Labor Party will promote stronger budgeting and clean up imprudent ad hoc spending,' the ALP boasted in its election costing request to the Parliamentary Budget Office, 'by eliminating the Advance to the Treasurer.' Loading Scrapping that advance, according to the budget office, would save $50 million, although it warned that it would 'reduce the government's capacity to undertake unexpected discretionary expenditures'. Axe it and the government would need to find savings elsewhere in the budget. In the Coalition's final budget, delivered by then-treasurer Matt Kean, $120 million was set aside in the treasurer's advance for state contingencies, although it was not all spent before they were turfed from power. Labor stuck to its word, and there was no advance in its first budget. By its second budget, however, an eerily similar fund emerged in its appropriation bill. Called a ' special appropriation for the treasurer', $322 million was set aside in last year's budget for state contingencies, essential services and 'expenditure related to the government's election commitments'. No specifics but a big pot of money. In this budget, that has ballooned to $868 million, again to be used on such things as election commitments.
7NEWS
4 days ago
- Business
- 7NEWS
2025 NSW budget thin on cost-of-living relief amid growing global uncertainty
NSW residents struggling with cost-of-living pressures have been left disappointed, as the 2025 state budget offers no new relief. Treasurer Daniel Mookhey unveiled the $128 billion 2025-2026 state budget on Tuesday, focusing on housing, essential workers, and protecting vulnerable communities. Mookhey reported a $5.7 billion deficit for 2024-25, with a forecast deficit of $3.4 billion for the 2025-2026 financial year. He acknowledged that 'a lot needs to go right' to return the state to surplus but said the finances were improving. The budget papers highlight growing uncertainty from unpredictable global policies that could weigh on the Australian economy, including US President Donald Trump's tariff regime. These impacts are expected to downgrade NSW's payroll tax revenue by $512.3 million over the four years to 2028-2029. Other drags on the budget include workers compensation, which the government has been unable to reform before premiums increase on July 1, and natural disasters. Disaster relief spending has leapt tenfold since the 2019-2020 Black Summer Bushfires, when compared to the six years prior, now costing $1.6 billion annually. Speaking to 7NEWS on Tuesday, Mookhey expressed concern that water bills could increase. With the current toll relief scheme set to expire at the end of this year, a few cost-of-living measures will remain to support NSW residents. Renters NSW's 2.3 million renters continue to benefit from fee-free rent payment options, a ban on upfront tenancy fees, limits on rent increases to once per year, and the introduction of Australia's first Portable Rental Bonds Scheme. First home buyers Eligible first home buyers in NSW can access stamp duty exemptions on properties under $800,000 and concessions on homes up to $1 million, along with a $10,000 grant for new builds under $600,000 or house-and-land packages under $750,000. Energy support The NSW Budget extends the $150 national Energy Bill Relief payment to the end of 2025, delivered in $75 quarterly instalments automatically applied to electricity bills for all households and eligible small businesses, in partnership with the Australian Government. Education A range of education support measures are in place, including up to $4347 in preschool fee relief for families with 3-to-5-year-olds, nearly 45,000 fee-free training places for apprentices and trainees, subsidised vocational education for in-demand skills, and additional travel, accommodation, and scholarship support for eligible apprentices facing hardship. Transport Beyond the $60 weekly toll cap running until the end of the year, NSW drivers can also benefit from the M5 South-West Cashback Scheme. The daily to weekly Opal Card travel caps continue to offer savings for commuters.
Sky News AU
4 days ago
- Business
- Sky News AU
The winners and losers of NSW Budget 2025
Foster carers and children are among the winners in this year's NSW state budget, as the government allocates historic funding to the child protection system. The state has reported a $3.4 billion budget deficit in the 2025-26 financial year, down from a $10.7 billion deficit inherited in 2023-24. Treasurer Daniel Mookhey says the government is on track to record a $1.1 billion budget surplus by 2027-28. Here are the winners and losers. WINNERS Children and Foster Carers A $1.2 billion Child Protection Package has been unveiled to support more than 17,000 children in the foster care system. The package includes: $797.6 million to support children and young people in out-of-home care. $143.9 million in increased Foster Care Allowance from January 1. $49.2 million for 44 government owned residential care homes. $10 million to support the Office of the Children's Guardian. $191.5 million for 200 new caseworkers and retain 2,126 caseworkers. Treasurer Mookhey says it is the largest investment in child protection in NSW history. Developers and Homebuyers The government will introduce a $1 billion Pre-Sale Finance Guarantee to accelerate the delivery of residential developments. The five year plan will remove financial barriers for developers and will be invested in residential development project packages for medium to high density houses. Treasurer Mookhey says the "nation leading" reform would put more supply in the system, in the hope of getting more people into homes and driving down costs. Emergency Services The Budget will be delivering $4.2 billion for disaster relief and emergency services. It will include: $42.2 million for 52 staff at a new 24-hour Badgerys Creek Fire Station. $34.4 million for Rural Fire Service. $17 million to renew Fire and Rescue fire-fighting fleet. $50 million to upgrade police ICT systems. $46.3 million for a new offshore patrol vessel. $87.7 million to strengthen Cyber Security NSW. $154.5 million to help communities recover from Cyclone Alfred. Western Sydney The state government will continue its infrastructure push in Western Sydney, with funding allocated to boost transport and health. Aerotropolis The state government is investing $835 million in infrastructure around the new Western Sydney airport and the Aerotropolis. The state and federal government will jointly commit $1 billion to upgrade the first stage of Fifteenth Avenue. Hospitals A further $700 million will be invested for the Bankstown Hospital (bringing total investment to $2 billion). $492 million for a new Pathology Hub at Westmead. $836.4 million for health services and hospital expansions. Public sector workers More than 90,000 public sector workers are set to receive pay increases which will cost the government more than $2 billion. This includes corrections officers, transport workers, school assistants and other essential workers. Public school and TAFE teachers will also benefit from a multi-year pay increase and increased job security, with over 3,000 casual staff to be offered permanent roles. Renewable Energy $2.1 billion injected into the state's five Renewable Energy Zones. Justice system A $49.4 million will be invested for a new hub to support victim-survivors of family and domestic violence and $34.5 million will be spent to upgrade major courts in NSW, facilitating 15 new courtrooms for victims and their families. $100 million will be spent on increasing the capacity of the prison system and the Office of the Director of Public Prosecutions will receive $48.3 million in funding. Creative Industries The arts and tourism sector will receive a $586 million funding to support culture and night-time entertainment. The $586 million package includes: $280.6 million for Screen NSW. $100 million in funding to locate a new screen production space. $135 million for Destination NSW marketing and tourism initiatives. LOSERS Drivers The government has not yet committed to extending the $60 a week toll cap, which is due to expire in January 2026. The toll relief scheme has so far saved motorists $139 million in claims since January 2024. The state has set aside $15.4 million to spearhead toll reform, which hopes to deliver relief in the long run. Average Households There are no new major cost-of-living measures for average households in this budget. However, the National Energy Bill Relief Fund will be extended, offering $150 in energy bill relief to households and eligible small businesses from July to December 2025. Tax Dodgers The state government has extended funding for Revenue NSW's tax integrity program to crack down on tax dodgers. The program will continue beyond the 2025-26 financial year. Public sector workers A pay deal has been reached for some public workers including doctors, nurses and psychiatrists. Golfers The NSW government plans to reclaim part of Moore Park Golf Course to create a 20-hectare public park. $50 million will be spent on transforming part of Moore Park South into a public area, which will include facilities for public sport and recreational use.
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
What is Mookhey's $1 billion housing guarantee, and how will it work?
The state government has turned its attention to the private sector to boost housing supply, after two budgets focused on delivering affordable homes for essential workers and social housing. Treasurer Daniel Mookhey used his third budget to reveal the government would create a $1 billion fund to guarantee up to $50 million in financing for approved housing developments to make the projects more feasible and speed up the delivery of an estimated 15,000 new homes over five years. Mookhey conceded the scheme was no 'silver bullet', but rejected the Opposition's criticism that the new homes represented a 'drop in the ocean', as he emphasised NSW would need to 'build, build, build' its way out of the long-simmering housing supply crisis. But he said the government's decision to become guarantor on thousands of residential developments would target one of the biggest roadblocks for developers who want to start building low- and medium-density projects: difficulty in securing enough pre-sales to get finance from lenders. The government hopes the plan will accelerate the construction of residential projects enabled under its transport-oriented development scheme and low- to mid-rise housing reforms, as it faces an uphill climb to meet its National Housing Accord target to deliver 377,000 homes by mid-2029. Loading How it will work The 'pre-sales financing guarantee' will enable mid-tier developers with approval for low- to medium-density residential projects and initial pre-sales to apply for $5 million to $50 million in financing. Property and Development NSW will assess those developers and projects for their 'credibility, capability and capacity' before agreeing to act as guarantor on up to 50 per cent of dwellings in each project. If approved, developers must start building within six months. Developers can typically only get lending approval for a project once they hit about 80 per cent of pre-sales. The government's decision to underwrite projects reduces the number of pre-sales a developer needs before a bank is prepared to make a loan available for them to start construction.
