In Business

New South Wales Treasurer Dominic Perrottet

Job Creation To Drive New South Wales Economic Recovery

Victor P Taffa

New South Wales Government will move from a “response” to “recovery” footing as it steers the state through the biggest economic challenge in a generation as a result of COVID-19.

New South Wales Treasurer Dominic Perrottet said creating jobs and restoring confidence for the hundreds of thousands of people and businesses impacted by COVID-19 was at the heart of the Government’s economic plan.

Treasurer Perrottet delivered an economic and fiscal update to the New South Wales Parliament today, on what would traditionally have been the day of the 2020-21 New South Wales Budget.

In his speech the Treasurer outlined how the Government’s health and economic response to COVID-19 the largest of any state at more than $13.6 Billion together with Commonwealth support, had significantly mitigated the economic impact.

Despite this, the State’s economy is still forecast to contract by as much as 10 % in the second half of the 2019-20 financial year, with unemployment forecast to rise to around 7 ¾ %.

Flow on effect on key revenue streams is expected to result in around $20 Billion of lost revenue over the five years to 2023-24.

“It’s time to get the show back on the road and from July 1 the vast majority of our new, socially distanced economy will be back open for business.” Treasurer Perrottet told Parliament.

“Biggest thing we can do for business and consumer confidence is to get people back into work.”

Treasurer Perrottet signalled the Government would adopt both targeted stimulus and reform to boost economic growth while charting a measured course towards fiscal repair.

Support will target key sectors, including construction, skilling and retraining, and helping tourism, retail and accommodation get back on their feet.

A new Small Business Recovery Grant of up to $3,000 will help small businesses safely relaunch operations, while free community childcare will continue until the end of September, beyond the end date for the Commonwealth childcare scheme, helping to get more people especially women back into the workforce.

Jobs will also be created through the government’s infrastructure program, with $3 Billion in direct stimulus for schools, hospitals and roads across the state taking the total infrastructure pipeline to more than $100 Billion, providing a strong foundation to restore consumer and business confidence.

To improve the efficiency and effectiveness of the economy and accelerate growth, the Government will focus on five key areas for reform:

  • Deregulation,
  • Productivity,
  • Tax reform,
  • Digitisation,
  • Trade and investment.

Treasurer Perrottet thanked the people of New South Wales for their commitment in working together to contain COVID-19 and urged that the same spirit be applied to the economic recovery.

“Our budget may be bruised, our economy may be battered, but our spirits are unbeaten.” Treasurer Perrottet said.

“Strength of our state isn’t measured by the state of our finances it’s measured in the dreams and the determination of our people.”

New South Wales Budget will be delivered in November.

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