New South Wales Budget analysis 2022-23
22 June 2022
The 2022-23 Budget holds out hope for the reform of inefficient taxes and also targets greater equity and opportunity for the people of New South Wales.
The NSW Government’s 2021-22 budget deficit is estimated at $16.5 billion, compared to the $8.6 billion it forecast in its June 2021 Budget, which preceded the re-imposition of COVID-related public health measures. However, there is an expectation of the operating balance returning to surplus from 2024-25. Net debt is not expected to exceed 14 percent of gross state product over the forward estimates period to June 2026.
It is generally better to undertake reform at a time when the state’s finances are in reasonable shape and we welcome the NSW Government’s first steps towards replacing land transfer duty with an annual property tax. The proposal to allow first-time homebuyers from 2023 to opt out of land transfer duty and into the annual property tax is a sensible way of launching the reform journey without compromising the state’s finances.
The NSW Government complements the above reform with its proposal to invest in a shared home equity scheme for certain key workers and other individuals who are finding it difficult to enter the housing market.
For a full copy of KPMG’s executive summary and analysis of the New South Wales 2022-23 Budget announcement, please download our report.
Queensland Budget analysis 2022-23
22 June 2022
Increased support for the health system and for job creation is at the centre of the 2022-23 Queensland Budget announcements.
The Budget projects an operating surplus of $1.9 billion for 2021-22, which is an improvement compared to the deficit anticipated 12 months ago by $5.4 billion. Tax and royalty revenues have contributed significantly to this result.
Further surpluses (although more modest) are anticipated from 2024-25. While net debt is expected to more than treble by 2025-26, at that level it would only be around 50 percent of general government revenue. This financial position has allowed headroom for additional spending commitments across portfolios.
Natural disasters have weighed heavily on the Queensland community over the last two to three years and the Budget includes $3 billion over four years for disaster recovery assistance. Child protection programs also receive nearly $2.2 billion over the forward estimates.
For a full copy of KPMG’s executive summary and analysis of the Queensland 2022-23 Budget announcement, please download our report.
Western Australian Budget analysis 2022-23
12 May 2022
Western Australian Premier Mark McGowan delivered his second state budget as Treasurer on Thursday 12 May 2022.
The Western Australian government’s extremely healthy financial position can create a platform for investment in growth and also an opportunity for reform.
The 2022-23 WA Budget predicts a sizeable net operating surplus of $5.7 billion for the current financial year – more than double that predicted in the 2021-22 Budget – with further, but smaller, surpluses expected to occur in each year of the forward estimates period to 2026.
State government net debt is projected to reach a modest peak in 2024-25 of just under 10 percent of gross state product (GSP) and to then decline.
At the same time, the Budget notes the economic risks that exist in the form of the evolution of COVID-19 pandemic (particularly in China), the impact of the Ukrainian conflict on global trade and the upward trajectory of global consumer prices and interest rates.
With these risks in mind, the WA government has allocated more than $1.3 billion to economic diversification projects for the tourism, education, agriculture and business services sectors, among others.
For a full copy of KPMG’s executive summary and analysis of the Western Australian 2022-23 Budget announcement, please download our report.
Victorian Budget analysis 2022-23
3 May 2022
The Victorian election-year state budget was handed down by Treasurer Tim Pallas on Tuesday 3 May 2022.
The 2022-23 budget includes significant funding for Victoria’s health sector following two years of the COVID-19 pandemic. This sets health as the centrepiece for the government’s platform as it heads into an election later this year.
The Victorian Government’s budget for 2022-23 forecasts a net operating deficit of $17.6 billion this financial year. Net debt is projected to be $101.9 billion currently, rising to $167.5 billion by 2025-26.
As a percentage of gross state product (GSP), net debt is forecast to reach 19.8 percent this financial year and 26.5 percent in 2025-26.
The commitment of over $12 billion in health spending is focused on health infrastructure and supporting recovery of the sector that bore the brunt of the pandemic.
This year’s budget has allocated significant spending towards the ongoing COVID-19 pandemic response, with $4.2 billion being provided to increase hospital capacity, purchasing and distributing rapid antigen tests and vaccines.
For a full copy of KPMG’s executive summary and analysis of the Victorian 2022-23 Budget announcement, please download our report.
