State Budget delivered with astronomical $16 billion deficit and ‘radical tax reform’
The NSW Treasurer has handed down a 2020-21 budget $16 billion in the red.
With unemployment to peak around Christmas, the state government has opted for massive public spending to stimulate the economy, blowing out net debt to $53 billion this financial year and $104.3 billion in 2023.
$29.3 billion will be spent on health, including $1.6 billion for the COVID-19 response, and $107 billion has been allocated to an infrastructure pipeline.
Every adult will receive four $25 ‘Out & About’ vouchers to spend in restaurants, cinemas and entertainment facilities.
State political reporter Clinton Maynard told Deborah Knight the hospitality industry has come out on top in this budget, along with the real estate business.
Home buyers are expected to benefit from “the most radical tax reform in this state in about 100 years”, following a consultation period.
“From April next year, anybody buying a property [will] be given a choice: either pay stamp duty, or pay an annual tax.
“[The Treasurer] believes it will inject about $11 billion into the economy, and create 75,000 jobs.”
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Property analyst Louis Christopher from SQM Research told Jim Wilson it could help affordability in the long-term.
“It’s massive, this is a once in a lifetime change.”
He said it could be implemented by the new financial year.
“This is one concern I have .. if this is not backdated to the announcement today, we could see a lull in the housing market.”
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