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PwC has called for debate on both federation and tax reform, following this week’s NSW budget.
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NSW budget shows widening fiscal gap
19 June 2014
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8 minute read
Iain McGuire, the firm’s NSW government lead partner said changes to commonwealth funding mean the time for debate is now.
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“The budget identifies a widening long-term fiscal gap as a result of Commonwealth funding changes, highlighting the need for debate on both federation and tax reform,” he said.
Mr McGuire said the NSW budget strikes an important balance of living within our means through prudent fiscal measures, and sponsoring growth via infrastructure investment.
“This is the preferred growth model that appears to be favoured federally as well, and the initiatives over the last two years in NSW show the model is effective in delivering positive outcomes for taxpayers,” he said.
“Strong fiscal management has created a capacity to invest at record levels.
“The budget is all about realising all of our potential to place NSW as number one."
Mr McGuire praised projects such as the Sydney Rapid Transit Line, the Western Sydney Light Rail, a second harbour rail crossing and an extension of the North West Rail Link through the CBD to Bankstown, saying these will not only help to solve NSW's long-term traffic problem, but help people who live in more affordable housing in the outer suburbs get to their jobs faster and at less expense.
To fund the infrastructure investment, Mr McGuire said he supported the government’s electricity privatisation initiative.
“It is imperative the people of NSW gives this government a mandate tol lease the electricity transmission 'poles and wires', which should yield around $20 billion to help pay for these much-needed rail and road projects,” Mr McGuire said.
“This budget does well to focus on core business with big record investments in health and education, and it also takes Sydney and the state further ahead in competitiveness with Asian neighbours, and with sustained focus on attracting investment and jobs to Australia," Mr McGuire concluded.
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