Treasurer Dominic Perrottet delivered his fourth state budget on Tuesday.Credit:AAP
"This is the reform we need to implement,"Mr Perrottet said.
The state’s debt will peak at $104 billion in 2023/2024 and the budget will not return to surplus until 2024/2025. NSW has not had a budget in the red for almost a decade.
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NSW’s infrastructure pipeline will grow to $107 billion,which will include a significant $812 million investment in new social housing.
Payroll tax will also be overhauled,with the rate to be reduced from 5.45 per cent to 4.85 per cent,which will deliver businesses savings on average of $34,000 a year over the next two years. The change will cost $2.1 billion in revenue to the state.
The threshold for when payroll tax kicks in will be permanently increased from $1 million to $1.2 million and small businesses that do not pay the tax will be given $1500 in vouchers to help pay government and council fees and charges.
NSW will spend $29.6 billion on its COVID-19 response over the next five years,and NSW Treasury forecasting assumes a vaccine will start to roll out from the middle of next year.