NSW Labor promises return to surplus, renewables boost

The news: NSW Labor's first budget in more than a decade predicts a return to surplus in 2024/25 and will funnel billions into electricity infrastructure and renewable energy projects.

The numbers: The NSW budget is expected to return to a surplus of $844 million in 2024/25 after a predicted deficit of $7.8 billion in 2023/24, according to Treasury figures. The budget will deliver $263 million for electric vehicle charging infrastructure, including charging stations on major routes, $1.8 billion for electricity infrastructure and renewable energy projects, $1 billion to set up an Energy Security Corporation to fund renewable energy projects, and $480 million to support local manufacturing of renewable energy and low-carbon products. Meanwhile, stamp duty exemptions for electric vehicles will be scrapped.

The context: Labor returned to power in NSW in March 2023 after more than a decade in opposition. Treasurer Daniel Mookhey handed down his first budget, promising a return to surplus the year after next. This is despite promised pay rises for public sector workers, which it says it will fund through $13 billion in savings and redirected funds. The budget bottom line will also be improved by increased coal royalties starting from 2024.