Destination NSW

NSW’s economy remains strong despite the challenges posed by ongoing drought, recent volatility in the housing market and soft growth in household consumption.

The economy is forecast to grow by 1 3/4 per cent in 2019-20 and 2 1/2 per cent in 2021-22.  

The NSW Government continues its record of sound financial management and is on track to deliver average surpluses of $1.9 billion over the four years to 2022-23.

We have maintained the State’s triple-A credit rating, while the NSW Generations Fund has outperformed expectations with a June 2019 balance of $10.9 billion.

The Government is laying the groundwork for economic and productivity reform. Since the Budget, the Government has progressed a number of key initiatives:

  • The NSW Productivity Commission’s Kickstarting the productivity conversation discussion paper  identifies key policy levers to support productivity growth and improve the wellbeing of NSW residents 
  • The NSW 2040 Economic Blueprint charts a course for the State’s continued economic success in a changing world
  • The NSW Review of Federal Financial Relations discussion paper is driving a national conversation on how state and Commonwealth governments can work better together for a better future
  • Outcome Budgeting moves funding discussions towards the end outcome that people care about.

The drought has now affected 99.9 per cent of NSW. Since the Budget, the NSW Government has announced additional measures worth over $208 million to deliver critical support to drought affected communities and farmers, including: 

  • $165.8 million for critical water programs to secure water supplies for regional New South Wales communities
  • $36 million to continue drought transport subsidy payments   
  • $5 million to implement the Fish Rescue Management Program  
  • $1.2 million to cover interest forgone to extend the Drought Assistance Fund.  

Recent bushfires have had a devastating effect on many NSW communities. This NSW Government is directing key resources to support the community, including:

  • $48.2 million in joint funding with the Commonwealth to provide recovery grants of up to $15,000 each to farmers and small businesses, improve access to mental health services, and support community organisations and local governments in providing bushfire recovery services.

  • $25.0 million allocated to facilitate the clean-up of homes and properties damaged and destroyed by recent fires.

  • $1.4 million for volunteer-based organisation BlazeAid, to assist with repairing fencing damaged by bushfires. And to make sure our communities are better protected, the NSW Rural Fire Service will be receiving a record $541 million in 2019-20.

The NSW Government’s infrastructure spending has hit a record $97.3 billion, an increase of $4.3 billion since the 2019-20 Budget. This record investment includes:  

  • $10.2 billion for hospitals and health facilities  
  • $7.3 billion for schools and skills infrastructure  
  • $4.0 billion for justice and emergency services infrastructure   
  • $57.5 billion for public transport and roads.  

The Government's infrastructure commitments continue:  

  • delivering Sydney Metro West, Australia’s biggest single public transport project  
  • redeveloping the Sydney Fish Market
  • reinvigorating the Pyrmont precinct and making it one of Australia’s leading tourist destinations
  • relieving congestion for commuters across the Sydney Harbour through the Western Harbour Tunnel and Warringah Freeway Upgrade 

We’re saving around 40,000 businesses up to $13,625 off their tax bill by providing payroll tax relief through progressively increasing payroll tax threshold to $1 million in 2021-22.

On 1 July 2019, the threshold increased to $900,000 and will increase again to $950,000 from 1 July 2020. This means that around 3,000 additional businesses will pay no payroll tax at all in 2019-20, saving up to $8,175. This will rise to around 5,000 businesses by 2021-22.