NSW Budget 2024-25: What It Means for Clubs

Historically, the NSW Treasurer is a member of the Legislative Assembly (lower house). This is partly because appropriation bills (bills that spend money), must originate from the lower house. 

An interesting fact about Daniel Mookhey, as he is a member of the Legislative Council (upper house), is that he had to seek permission to enter the Legislative Assembly to deliver the budget. 

At midday on Tuesday, 18 June 2024, the NSW Treasurer, the Hon. Daniel Mookhey MLC, entered the Legislative Assembly and handed down the second budget of the Minns Government. 

The NSW Budget is experiencing significant levels of post-COVID debt, which has worsened due to a reduction in NSW’s GST share. The GST decision cannot be understated. According to the NSW Government, the Commonwealth Grant Commission’s decision to cut GST payments to NSW by $11.9 billion has taken more revenue from NSW than was lost in the COVID-19 pandemic.

The NSW Budget projects a deficit of $3.6 billion in 2024-25, down from a $500 million surplus projected last year. Net debt is forecast to reach $110 billion in 2024-25 and increase over the forward estimates.

Gambling Tax Revenue 

This is forecast to be $3.5 billion in 2023-24, which is $131 million higher than forecast at the Half-Year Review. Over the four years to 2027-28, forecast gambling tax revenue has been revised up by $359.2 million.

Taxation on club gaming devices is forecast to be $1 billion in 2024-25, up from $941 million in 2023-24.

Gambling Harm Minimisation Fund 

The Government announced in October 2023, and have now committed, the additional $10 million to the Responsible Gambling Fund. This will fund GambleAware providers across 10 NSW regions and support key services including the GambleAware Helpline and Gambling Help Online. 

Cyber Security and ID Support NSW 

The Government has committed to significant funding to support cyber security in NSW, including: 

• $205 million for cyber security and ID Support NSW to build cyber resilience and help people affected by a data breach. 
• $62.5 million to roll out digital licensing to 80 NSW qualifications, making applications faster and more convenient.
• $21.4 million to help build a NSW Digital ID and Wallet to make proving an individual’s identity and qualifications easier and more secure. 

ClubsNSW has been engaging with the NSW Government on cyber security, particularly after the recent Outabox incident and the cashless gaming initiatives that are currently being trialled.

Vocational Education and Training (VET) System and Apprentices

The Budget includes announcements relating to VET, including:

• A $2.5 billion budget investment in TAFE NSW to strengthen the skills sector. 
• Investing up to $16.3 million to continue fully subsidised training for all apprentices and trainees. 

ClubsNSW has been actively participating in submissions and consultation on the VET system in NSW. 

Arts and Night Time Economy 

The Government has committed to delivering further reforms to support venues, event organisers and councils as part of the ‘Vibrancy’ Agenda. This includes legislation to make it easier to host events and festivals and streamlining planning processes that are restricting cultural activity. 

ClubsNSW has been working with the NSW Government, including Liquor & Gaming NSW and the Office of the 24-Hour Commissioner, through the introduction of the first suite of vibrancy reforms. We are continuing to work with the NSW Government to address the challenges clubs face in broadening and diversifying their offerings.

Miscellaneous Items 

• Over $200 million has been committed to enhance digital connectivity in rural, regional and remote areas. 
• $5.1 billion has been committed to addressing the current housing shortage and improve housing affordability. 
• The Government has committed $3.2 million in 2024-25 for additional Point of Consumption Tax and gaming machine tax compliance activities. This is estimated to increase gaming tax revenue by $14.8 million in 2024-25. 
• $88.8 million to the NSW Office of Sport to support grassroots sports in new communities and deliver women’s sport initiatives.
• The Government has committed $2.5 million for SafeWork NSW to implement and ensure compliance with the national ban on the use, supply and manufacture of engineered stone from 1 July 2024. 

You can read more about the NSW Budget here.