NSW Budget 2018–19 overview — What property investors need to know
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NSW Budget 2018–19 overview — What property investors need to know

NSW Budget 2018–19 overview — What property investors need to know

by Sasha Karen | June 20, 2018

The New South Wales budget has been handed down and there are a few things that investors should keep an eye out for that could raise their portfolio’s value.

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Delivered on Tuesday (19 June), the New South Wales budget for the 2018–19 financial year has some bits and pieces that could help improve the profitability of an investor’s portfolio due to an improving economy, but nothing that directly targets existing local investors.

First home buyers

While existing investors did not show up in the budget papers, first home property buyers did, who may transition into first-time property investors.

The budget papers stated that transfer duty relief and grants would be made available to first home buyers. The relief would see first home buyers saving an average of $14,500, with additional benefits being made available to bring those savings up to $34,361.

Health

In financial year 2018–19, the New South Wales government plans to spend $8 billion on health, which includes:

Schools

In financial year 2018–19, the New South Wales government plans to spend $6 billion on schools over the next four years, which incluldes:

  • Starting the construction of 40 new and upgraded school projects
  • Starting the planning for over 20 new schools and upgrades
  • Continuing construction of over 110 new and upgrading school projects
  • $197.8 million over the next four years to extend the Start Strong program, which includes:
    • Extending it to three-year-olds
    • $42.1 million in grants for constructing 4,800 new community preschool places
  • $500 million over five years for cooling equipment for schools;
  • $160 million for planned maintenance of schools
  • $30 million over four years to open school playgrounds and sporting facilities for community use during weekends and school holidays
  • $39.2 million over four years to replace and upgrade PCYCs, which includes:
  • $285.2 million over six years to fund 100,000 fee-free apprenticeships and addressing skills shortages in areas of demand

Infrastructure

In financial year 2018–19, the New South Wales government plans to spend $15.3 billion on infrastructure, which includes:

  • $3 billion reservation, including $28.1 million to fast-track the planned railway between the Sydney CBD and Greater Parramatta
  • $4.3 billion for Sydney Metro, which includes:
    • $2.4 billion to link North West Sydney to Chatswood
    • $1.9 billion to link Chatswood to Bankstown
  • $1.8 billion to continue construction of WestConnex
  • $1.2 billion to continue upgrading the Pacific Highway, which includes continuing construction between Woolgoolga and Ballina and planning for the Coffs Harbour bypass
  • $438.9 million to upgrade roads to support the upcoming Western Sydney Airport at Badgerys Creek, which includes continued construction of Bringelly Road and The Northern Road between Narellan and Penrith
  • $282.8 million to plan or deliver missing links on motorways and major routes in Sydney, which includes the first stage of the F6 extension, NorthConnex, Sydney Gateway and the Western Harbour Tunnel and Beaches Link
  • $281.3 million to address road congestion in Sydney and to continue construction on the M4 Smart Motorway
  • $258 million to the first stage of Parramatta Light Rail
  • $11.6 million to planning upgrades to HeathcoteHeathcote, NSW Heathcote, VIC Road, which includes the widening of the Woronora River Bridge and widening the road between Holsworthy and Voyager Point
  • $1.5 billion to bus services
  • $1.2 billion to public transport concessions
  • $133 million for upgrading transport infrastructure
  • $87 million for Community Transport and Home and Community Care services
  • $23 million for ticketing, licensing and concessions
  • $15.6 million to the Growth Services Program
  • $640 million to the More Trains, More Services program to upgrade the capacity of the network, particularly for the T4 and T8 lines

Sports, arts and culture

In financial year 2018–19, the New South Wales government plans to spend $1.5 billion on sports, arts and culture, which includes:

  • $245 million to build a new Powerhouse Museum in Parramatta, master planning for a creative industries precinct in Ultimo and upgrading the Museums Discovery Centre at Castle Hill
  • $912.7 million to stadium investment, which includes:
    • $729 million over four years to replace Sydney Football Stadium at Moore Park
    • $183.7 million to construct the Western Sydney Stadium in Parramatta
  • $173 million to deliver the Visitor Economy Industry Action Plan, which includes:
    • $82 million to promoting major events
    • $54 million for tourism promotion
  • $100 million over five years to increase the number and quality of regional sporting facilities
  • $30 million to support development of arts and cultural activities
  • $24.1 million for grants to support screen production
  • $5.8 million to upgrade the Australian Museum
  • $6.1 million over four years to the ongoing operation of the Anzac Memorial
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