Barton Deakin Brief: NSW Economic Recovery Strategy
21 October 2021
On the 21st of October 2021, NSW Premier Dominic Perrottet and Treasurer Matt Kean released the NSW Economic Recovery Strategy, a comprehensive plan for the economic revival of NSW. This plan corresponds with the easing of restrictions across the state as NSW maintains a nation leading vaccination rate alongside lower-than-expected case numbers. The Strategy will cost approximately $2.8 billion dollars and accompanies the phasing-out of the COVID-19 Disaster Payment, JobSaver, Micro-Business Grants and the Emergency Hardship Payment.
This Economic Recovery Strategy has three major components – ‘Securing a strong rebound’, ‘Targeted and timely support’ and ‘Coming back stronger’. All three components aim to revitalise specific industries that have struggled during the pandemic, whilst boosting consumer and business confidence and ensuring a safe reopening in time for summer.
Securing a strong rebound
The NSW Government will invest in the following initiatives to ensure that the state is well placed to bounce back to life in time for summer:
- $250 million to support jobs and skills, including help for job seekers to retrain or upskill
- $500 million to restore consumer and business confidence, including expansion of the Dine & Discover voucher program, and an expanded Stay & Rediscover accommodation voucher
- $212.2 million to boost vital sectors of the NSW economy, including additional funding for the performing arts sector, an Alfresco Restart Package, and support to bring NSW cities back to life
- $75 million to boost communities across the state, including support for tourism, events, sport and recreation
- $200 million to boost regional NSW, including support for events, facilities and local infrastructure, and housing
- $5 billion for the creation of WestInvest – a fund targeted at improving infrastructure and liveability across Western Sydney
Targeted and timely support
- $130 million for a mental health recovery package to provide immediate access to help for anyone whose mental health has been impacted by the COVID-19 pandemic
- $495 million in additional education support to address learning gaps for children in need and to help schools adapt to future possible learning disruptions
- $739.3 million in household and social support, including housing support for vulnerable Aboriginal communities, expansion of solar rebates, support measures for victims of domestic and family violence, and vouchers to parents who have facilitated home learning for their children.
- Support for business sectors still under pressure, including Event Saver to support event organisers, and expansion of the small business rebate for fees and charges to include road tolls.
Coming back stronger
- Supporting the further development of existing industries, such as the theatre and film sector
- Building the capabilities to support new opportunities such as a Ribonucleic acid (RNA) research and manufacturing industry
- Reducing red tape to make it easier to run a business in NSW while ensuring customers are protected
- Support for our First Nations communities, including investing in the Aboriginal Community Housing Investment Fund and greater employment pathway opportunities for Aboriginal and Torres Strait Islander students
- Improving liveability in NSW communities with investment in new open spaces and outdoor recreation
- Boosting workforce participation by identifying barriers to women’s economic participation and reform opportunities
The NSW Economic Recovery Strategy outlines the impact of these three components on key areas of social and financial hardship. These key areas are as follows:
- Additional vouchers are available to all NSW residents through the Dine & Discover voucher program, redeemable at eligible businesses and the new Stay and Rediscover scheme will give NSW adults a $50 voucher redeemable at accommodation premises across the State.
- The Small and Medium Enterprise Summer Holiday Stock Guarantee provides up to $20,000 to compensate for the loss of perishable stock in the event of further public health orders.
- Red tape reduction reforms for planning will streamline the approval processes for certain types of hospitality businesses, filming and temporary events on public land.
- Expansion of the small business rebate for fees and charges to help reduce the costs of establishing or running a small business
Arts, tourism and hospitality
- The Alfresco Restart Package to maximise capacity for hospitality businesses
- The Performing Arts Relaunch Package to support the performing arts industry
- The Aviation Attraction Fund will re-establish service presence in NSW
- The Festival Relaunch Package to support the festivals industry
- An Events Saver fund to provide support to event organisers if their events are impacted by further public health orders
- A mental health recovery package for those impacted by COVID-19
- Support for vulnerable Aboriginal communities through the Services Our Way program
- Expansion of the Solar for Low Income Households program
- Support for victims of domestic and family violence
- $183 million in social and affordable housing support measures.
- New and upgraded social homes through additional investment in the Aboriginal Community Housing Investment Fund
- Accelerating the delivery of around 2,800 homes, including around 1,000 social housing dwellings, through Communities Plus projects
- 290 new social and affordable housing dwellings will be delivered in partnership with community housing providers through the Community Housing Innovation Fund.
- 80 new small scale social housing dwellings will be constructed across the State.
- 45 new homes will be delivered for Aboriginal families, to support kinship living and reduce overcrowding.
- Expansion of the ‘Additional Rent Choice’ and ‘Start Safely’ packages to support 990 households secure housing in the private rental market
- Increased investment in Services Our Way to support around 130 additional vulnerable Aboriginal families
- Additional investment into Skilling for Recovery will support school leavers entering the workforce
- The Regional Youth Community Coordinator Program will be extended to support community-based initiatives for young people.
- The Office of Regional Youth Holiday Break program will be expanded to fund new social and recreational activities for young people.
- Intensive tutoring program in the 2022 school year to address learning gaps for children in need and restore lost learning during COVID.
- An online learning platform will help schools adapt to further possible disruptions from COVID.
- Identify reform opportunities to improve early childhood education outcomes and improve accessibility and affordability
- $250 in Thank You vouchers for each household where home learning has taken place
To view the NSW Government’s Economic Recovery Strategy, click here.
To view the NSW Premier and Treasurer’s media release, click here.
For more information, contact Anthony Benscher on +61 438 439 431, Andrew Humpherson on +61 419 241 587, Julia Kokic on +61 405 955 887 or Nicholas Rigby on +61 468 913 175.
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