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NSW Treasurer Daniel Mookhey has released his 2025 budget, which he claims will bolster the state’s “economic growth”.
Announcing the Minns Labor government’s third budget, NSW Treasurer Daniel Mookhey aimed to address the cost of living, housing pressures, retention and recruitment rates in certain sectors, and upskilling in others.
“For the workers, managers, entrepreneurs, innovators, investors and businesses wanting to expand in NSW, wanting to create more jobs, wanting to earn or pay higher wages – this Labor budget delivers even more reform,” said Mookhey.
As previously reported by HR Leader, workers in the public sector across the state are set to receive a compound wage increase of 11.4 per cent over the following three years, with the first instalment – backdated to 1 July 2024 – set to come to effect at the end of this financial year.
Adding to that is a $3.4 billion investment in TAFE and Skills funding, which Mookhey claims will equate to 23,000 newly trained construction workers and an upskilling of 4,800 tradies to be site-ready.
For workers in the child protection sector, Mookhey announced that the government will commit to “the biggest investment in child protection in New South Wales history”.
“A record $1.2 billion uplift. The first major investment in nearly two decades. $797.6 million of additional funding will fix what was a chronically – and tragically – underfunded system. And $191.5 million is set aside to give 2,126 caseworkers a pay rise. Helping us fill the 200 caseworker positions still vacant. Letting us create 100 new leading caseworker roles. Paid for by mutual-gains bargaining,” said Mookhey.
“We are making key investments to counter a housing crisis, to support our most vulnerable people, to deliver the schools, hospitals, public transport and roads we need and to back businesses and workers.”
For businesses, the budget delivery offered “mild relief”, according to Business NSW chief executive Daniel Hunter, describing it as a “sensible approach”.
“There are dark clouds on the horizon for business – global uncertainty, subdued business conditions and cost pressures such as spiralling workers’ compensation and general insurance premiums – but this budget keeps the state ticking along and is financially prudent.
“The $3.4 billion investment in TAFE, with a focus on residential construction, is a positive,” said Hunter.
During his announcement, Mookhey spoke on the proposed reforms to the NSW workers’ compensation scheme, which he has personally spearheaded, claiming that small businesses will continue to be “undermined” if the reforms are not successfully implemented.
“But their effect will be undermined if 340,000 small businesses have to pay 36 per cent more in workers’ compensation premiums because the Parliament has refused to reform a workers’ compensation system that is failing injured workers, failing small business, and failing the taxpayers too,” said Mookhey.
“… Because reform is blocked, the budget is hit by $2.6 billion in additional workers compensation liabilities.
“… Especially since it is public money that we could invest in preventing workplace injuries and in getting sick and injured workers back to work. Let alone pumping more money into our schools, hospitals, roads, or public transport. Every dollar injected into a failing system denies that dollar to our essential services.”
The reforms have been introduced to the NSW Parliament after receiving widespread outrage and backlash from various stakeholders across the state, claiming the proposals were “rushed” and could “make it harder” for injured workers to receive their compensation.
For the sake of small businesses, Hunter called on “all sides of the Parliament” to ensure the reforms go through.
“All sides of the Parliament must come together to deliver reforms on workers’ compensation as soon as possible,” said Hunter.
Hunter also claimed that businesses are at the peril of payroll tax, which also needed urgent reform: “But the grim reality is 52,000 NSW businesses continue to be slugged with payroll tax – something which disincentivises employment and investment.
“With inflation and real wages rising, many more businesses will be caught in the payroll tax net without reform.”
“… This NSW budget may fall short on cost relief, but its focus on innovation, skills, and infrastructure helps set NSW up for long-term growth.”
Overall, Mookhey stressed that the Minns government’s priority focus was on “economic growth” moving forward.
“The Minns government is focused on the future of economic growth. It is focused on the future of families. Their jobs. Their businesses. Their wages. Their hospitals. Their schools. Their essential services. The budget shows how, in each year of this young government, we make progress. We have added to our ambition. We are building a better New South Wales,” he said.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
