Breaking Down the Numbers: NSW State Budget 2023–24 Overview

State of the Budget

Economic activity in NSW has broadly rebounded post-COVID and there continues to be a strong labour market in the state. However, over the last year, a combination of high inflation (particularly on essential goods and services) and interest rate rises has increased pressures on household budgets. We have seen that this has reduced consumption by households, particularly on non-essential items.  

Looking forward, economic growth is expected to slow down in NSW as household consumption continues to decline. This trend mirrors current global economic conditions of a slowdown in economic momentum. However, the Government does consider that this slowdown will be modest, as population growth and high net overseas migration will continue to support consumer spending and fill vacancies in the labour market.

Interestingly, gambling and betting tax revenue has been revised down by $1.5 billion over the next four years to 2026-27 to reflect lower gaming machine activity in both clubs and hotels, a more subdued outlook for Sydney casinos and lower casino tax rates.

There has been no change to gaming tax at this time. The Government has indicated that over the next four years, taxation revenue is projected to increase by $16.6 billion largely due to improvements in transfer duty revenue and stronger payroll tax revenue.

It will be important for clubs to continue to consider broader economic conditions as part of their long-term viability and strategic plan to ensure that the club can continue to thrive and be sustainable.

A summary of some of the key announcements handed down are below.

Gambling Harm Minimisation Funding

The NSW Government will redirect the $100 million fine imposed on the Star Casino by the NSW Independent Casino Commission over five years to fund harm minimisation initiatives. The breakdown of this is as follows:

• $10 million in additional investment in 2023-24 for the Responsible Gambling Fund, through the Office of Responsible Gambling, for the provision of GambleAware counselling and support services, awareness and education campaigns and initiatives like Reclaim the Game and to support world-leading gambling research.
• $6.4 million to enhance self-exclusion and introduce third-party exclusions in pubs and clubs.
• $3.4 million for the independent expert panel to run and evaluate a 12-monthg cashless gaming trial in pubs and clubs, with expressions of interests recently called for venues to take part.
• $21.7 million each year, for three years from the financial year 2024-25, to fund other gambling harm minimisation initiatives and reforms, including those recommended by the Independent Panel.

Vocational Education and Training (VET) System and Apprentices

The NSW Government has committed to a thorough review of the VET system.

Other measures relating to VET include:

• The Government has committed $112 million to meet the TAFE funding shortfall.
• Fee-free vocational education places for training in-demand skills and industries and fee concessions for Commonwealth welfare beneficiaries and people with a disability to undertake Certificate IV and below qualification through Smart and Skilled Program.
• The Vocational Training Assistance Scheme travel and accommodation to allow for apprentices or new entrant trainees who are required to travel more than 120km round trip to attend day or block-release training.
• $100 rebate to first and second-year apprentices through the apprentice vehicle registration course.

Music, Arts, Events and the Night-Time Economy

• $26.8 million of funding in 2023-24 has been provided by the Government to support the Office of the 24-Hour Economy Commissioner, including to build and expand the night-time economies in Wollongong, the Central Coast and Newcastle.
• An additional pledge of $41.3 million has also been provided for events including Great Southern Nights. ClubsNSW has been an active participant in the Great Southern Nights initiative and encourages clubs to explore hosting a live music event in their venue as part of the program.

As another Budget comes and goes, ClubsNSW will continue to work proactively with Government to understand measures and announcements and keep member clubs informed of outcomes.