Not a lot new for bush in State Budget, but health, housing

Presenting its second budget in nine months, the NSW Government focused primarily on health, housing and education, although there was also significant investment in biosecurity and an increase in funding for Local Land Services.

However, the Rural Assistance Authority and Regional Growth NSW Development Corporation took large hits to funding.

The Government was forced to absorb a $11.9 billion hit over the next four years after the Commonwealth Grants Commission reduced NSW's return on GST paid from 92 cents to 87c for every dollar paid, resulting in the budget not returning to surplus.

But forward estimates have the 2023-24 deficit of $9.7b shrinking to $3.6b in 2024-25.

In his speech to Parliament, treasurer Daniel Mookhey said the Government would absorb the $11.9b cut rather than passing it on to tax payers.

"Helping families is our most important mission during NSW's worst cost-of-living crisis in a generation," he said.

"We refuse to respond to the Grant Commission's absurdity by imposing austerity on NSW. That would lead to misery."

The Government has committed $945.7m across the next four years for biosecurity, most of which is already allocated in Local Land Services and NSW Department of Primary Industries budgets.

The biosecurity funding incorporates already announced initiatives including the $55.3m for the eradication of red imported fire ants, $36.2m to manage Varroa mite, $25m to boost frontline surveillance and preventative capabilities, $13.1m for the Feral Pig and Other Pest Management Control program, $10.4m for the Weeds Action Program, $6.2m to target White Spot disease, $5.8m to continue the Good Neighbour Program, and the appointment of an Independent Biosecurity Commissioner.

The LLS received a 12.3 per cent increase in funding, rising from $260.6m in 2023-24 to $292.7m for the next financial year.

Rural Assistance Authority funding was cut from $861.4m to $72m, down 91.6pc. However, this is primarily due to grants and subsidies dropping from $818.4m in 2023-24 to $31.3m in 2024-25.

The money allocated to the Regional Growth NSW Development Corporation was cut from $130.8m in 2023-24 to $50.5m, down 61.4pc.

Overall, the Department of Regional NSW, to be re-named the Department of Primary Industries and Regional Development, is estimated to run at a $108.4m profit with budgeted expenses to be $2.426b and budgeted revenue set at $2.529b.

A media release sent out by Minister for Regional NSW and Agriculture Tara Moriarty said this was "a budget to responsibly reduce debt which prioritises building better homes for the people of NSW, ensuring those who need it most, no matter where they live have access to safe and affordable housing".

"This budget makes considered investments to strengthen regional communities, with access to roads, transport, and vital essential services," the release said.

"We will continue to make responsible, better choices on how and where we spend the public's money."

The Government said it was addressing the housing crisis in NSW, delivering an investment of $6.1b to build 8400 social homes and upgrade 33,500 homes.

Attracting more health workers to regional and rural NSW was integral to the Government's health strategy, with $200.1m allocated to increase key health worker accommodation with Lake Cargelligo, Lismore, Eurobodalla and Tweed Heads already identified as areas of need.

There was also $274.7m allocated for an additional 250 healthcare workers across the state at new and upgraded hospitals with a substantial portion going to Bowral, Cowra, Cooma, Glenn Innes and Griffith.

To help families against cost-of-living pressures, the Government also announced $188.8m for its Bulk Billing Support Initiative, a new payroll tax rebate to medical centres in regional areas that bulk-bill over 70 per cent of eligible services in the hope it will increase the number of bulk-bill consultations available for rural and regional families.

The Government hopes the teacher shortages in rural and remote areas will ease with an additional 26 schools added to the Priority Recruitment Support program which allows schools with long-term vacancies to incentivise prospective teachers with a recruitment bonus of up to $20,000, and a relocation support package of up to $8000.

Half of the Government's planned 100 new pre-schools will be built in regional locations as well.

As part of a $5.7b investment in disaster relief and recovery to 2027-28, which is jointly funded by the Australian Government, the NSW Government has committed $3.3b to repair roads impacted by natural disasters.

Which projects will be funded will be determined post budget.

Also included in the disaster relief funding is $2 billion for other relief and recovery programs administered by the NSW Reconstruction Authority, including $525m for the Resilient Homes Program across the Northern Rivers and Central West, including an additional $90m of state Government funding and $40m for the Central West Housing Program.

This program supports voluntary buybacks and increase flood tolerance of existing houses through raisings, repairs and retrofits.

Also included is $282.7m for the Regional Roads and Transport Recovery Package, $159.3m from the Infrastructure Betterment Fund, $24.5m for the Community Assets Program, $116.7 million to repair critical water and sewerage infrastructure, and $94.7 million for the NSW State Emergency Service to invest in critical resources to effectively respond to future floods and natural disasters.

The Government continued its funding for regional centres with the continuation of $332.2m for Parkes to become a national freight and logistics hub, $283.4m over the next four years to enhance digital connectivity for rural, regional and remote NSW communities, $224.8m for the Moree business hub, $212.2 million for Wagga Wagga's hub of high-value agricultural and food manufacturing, $196.3m in the Snowy Mountains region for essential infrastructure to support housing and year-round tourism, and $45m to support farmers and agribusinesses in the adoption of digital technology and on-farm connectivity solutions.