NSW Mini Budget

NSW Mini-Budget

Responding to what the NSW Government describes as financial pressures placed on it by the Federal Government, NSW Treasurer Michael Egan, delivered a mini-budget less than three months before the full State Budget.

After several weeks of actively campaigning, including extensive television and print advertisements, against the Federal Government and the Grants Commission allocations to the States and Territories, the Carr Government has sought to minimise the impact of what it describes as unfair treatment from the Howard Government.

The NSW Government claims it is subsidising other States to the tune of $2.98 billion a year.

The key elements of the mini-budget include:

An expected budget deficit for 2004/05 of approximately $300, the first Carr Government budget deficit.
$365 million of targeted expenditure cuts and savings.
Levying a 2 ¼ per cent stamp duty on the sale of properties except for a person’s principal place of residence and farms.
Abolishing the land tax threshold and major reductions in the rate of land tax.
The abolition of stamp duty for almost all first homebuyers.
Additional budget funding for country and city hospital running costs of $572 million per year.
A capital investment program for new hospital facilities and equipment next year of $600 million.
Additional support for passenger rail system in the coming year of $300 million.
A significant overhaul of the Sydney rail system with a six-year, $1 billion program for five rail clearways and a $1.5 billion program for 498 new air-conditioned train carriages.
Extra budget funding of $356 million for education, including the roll-out of smaller class sizes.

While the mini-budget has been released it is yet to be considered by the Parliament and will require the passage of enabling legislation through both Houses of Parliament, particularly the non-government controlled Legislative Council when it resumes sitting next month.

The full NSW State Budget for 2004/05 will be delivered on June 22, 2004.