This year’s state budget has been released and it’s a big one for public housing.

There is a $3.6 billion deficit projected for this coming financial year, compared to the $475.1 million surplus that was predicted in December.

NSW Treasurer Daniel Mookhey points to lower GST revenue from the Commonwealth and an accounting error unnoticed for five years that caused Sydney Metro property sales to be counted twice.

State budgets often receive much less attention than the Federal Budget, which directly funds university education, but they do impact the crucial services of transport, housing, and hospitals.

So, here’s how the 24–25 NSW Budget might affect you:

Housing

The biggest announcement was the allocation of $5.1 billion towards public housing, in what Treasurer Mookhey has said is the “biggest single investment in social housing any NSW government has made in the federation’s history”.

It will go towards the construction of 8400 new and rebuilt social housing dwellings, with at least half prioritised for people fleeing domestic violence.

This comes in addition to a $245.6 million emergency package supporting domestic and family violence victim-survivors.

An additional $1 billion will be used for repairs of existing public housing.

The relatively new Rental Commissioner will receive $8.4 million more in funding to develop and enforce rental protections.

One of NSW Labor’s election promises in 2023 was to ban no-grounds evictions, but there has not yet been a commitment from the government.

Greens Housing spokesperson Jenny Leong told Honi Soit this investment in social housing is welcomed, and can “solve the housing crisis if it was repeated every year and not one-off.”

Additionally, $527.6 million has been allocated to address rising numbers of people seeking help for homelessness, with $260 million funding safe shelters and support for finding permanent housing, and $250 million assisting people at risk of homelessness.

There are no measures which place a cap or freeze rents, which the Greens have supported. Rents continue to grow to record high numbers in Sydney.

Transport

A massive investment in public transport infrastructure continues, totalling $22 billion, but part-time and international students continue to miss out on subsidised Opal fares.

$2 billion has been dedicated to completing Stage 2 of the Parramatta Light Rail, aiming to increase transport links to the Parramatta CBD.

$1.2 billion is allocated for the completion of Sydney Metro City and Southwest, set to open in its first stage this year from Chatswood to Sydenham via Central and from Sydenham to Bankstown next year.

The transition to a zero-emissions bus fleet by 2035, which began under the previous government, will continue with $1.9 billion allocated for this financial year.

Health

A new $188.8 million Bulk-Billing Support Initiative will remove existing disincentives for GPs to bulk bill. Doctors in metropolitan areas who bulk bill at least 80% of their patients will now receive rebates on their payroll tax.

The government has said this initiative will “protect bulk billing rates by reducing financial pressures on GP practices so they don’t pass on additional costs to patients and will save clinics from closure”.

Greens’ Health spokesperson Amanda Cohn told Honi that while it is a “huge step in the right direction”, the government using payroll tax to “try and force GPs to bulk-bill is not a sustainable solution”. She noted that current Medicare rebates for doctors do not sufficiently cover the cost of providing care.

Previously announced  was a $111.8 million package for greater  mental health care services, including services to reduce long stay hospitalisation and a dedicated mental health single front door. This includes $30.4 million to expand community mental health teams.

Education

Urgent repairs at TAFE campuses, including improving internet access, will cost $190.2 million. An additional $83.1 million will support the conversion of 500 casual positions into permanent roles.

The Working with Children Check fee for paid jobs will increase from $80 to $105, as well as become indexed to inflation, a steep cost for many young people who work in childcare. They remain free for volunteers, students on professional placements, and carers.

The Budget also delivers a large investment into public preschools, establishing 100 new preschools across the state and investing $60 million into private preschools to increase geographic and financial accessibility to childcare.

Climate crisis

Continuing the development of renewable energy zones, which began under the now-retired NSW Liberal Treasurer Matt Kean, Labor’s Budget allocates an additional $3.1 billion for the renewable energy transition.

However, the Minns government has simultaneously committed $225 million a year to extend the operation of the Eraring coal power station to 2027, under a recommendation by the Australian Energy Market Operator to avoid “forecast reliability gaps” in power supply. 

This policy has come under fire from the NSW Greens, with the Greens spokesperson for Energy, Abigail Boyd, accusing the government of “dragging its feet” on the energy transition through remaining dependence on fossil fuels.

Night-time economy

On a smaller scale of spending is the government’s investment in the night-time economy and creative industries, with $54.2 million going towards funding the Office of the 24-Hour Economy Commissioner, Sound NSW, and upgrades of cultural institutions like the Sydney Opera House and the Powerhouse Museum, which has been subject to chaotic redevelopment plans in recent years. 

Whether this is substantial enough to have much impact on Sydney’s dire state of night-time activity remains to be seen, but it is certainly a welcome step in reinvigorating community events post-pandemic. 

This budget is ambitious in certain areas like housing but overall reflects a tight economic outlook from a Labor government. The worsening cost of living crisis will continue as even the strongest measures like the billions put into social housing will take years to come through- assuming they are implemented well. 

Article done in collaboration with @nswpol_X