Treasurer Dominic Perrottet handed down the New South Wales budget on Tuesday—and it delivered a record infrastructure spend to drive investments despite reduced stamp-duty revenue, according to the Property Council of Australia.
The smaller surplus of $802 million in 2019-2020 and an average of $1.7 billion in forward years resulted in the state budget. There were no new taxes or tax increases, while property stamp duties were written down by $10.6 billion since 2017.
The budget also contained a $6.4 billion investment in Metro West, a key piece of transport infrastructure to drive investment Sydney’s growing West.
“Treasurer Perrottet’s third budget delivers on the government’s election commitments and provides a solid foundation for future economic, job and productivity growth through a $93 billion infrastructure investment. However, it’s a budget that reflects tightened purse strings necessitated by a slower residential housing market,” Property Council NSW Deputy Executive Director William Power said.
The record infrastructure spend included $55.6 billion on road and rail, $7.3 billion on education, and $10.1 billion on health infrastructure
“Sydney and NSW will always grow, but we must invest in the right infrastructure in the right places so that we grow well – this budget does this and supports new and growing communities with much needed social infrastructure,” Power said. “The investment in the Metro West will mean the increasing number of our city’s workers who live in Western Sydney can get to work more easily. However, it will also drive investment in centres such as Sydney Olympic Park and Parramatta, supporting a 30-minute city. This added to the North-South Metro rail link will make for a more connected western city and drive investment in the Aerotropolis.”
Government revenue dropped due to a weakening residential market, and the property council said there is nothing in the budget to support a slower residential sector and lift housing supply.
This requires a long-term policy commitment,” Power said.
The budget statement forecasts residential transfer duty to climb at an annual rate of 8.8% over the four years to 2022-2023
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