Category: NSW News

The Minns Labor government will bolster the recruitment and retention of health workers by committing more than $120 million towards health worker study subsidies in the budget.

The NSW Government will support 12,000 healthcare students with study subsidies over 5 years, fulfilling a key election health pledge.

New students will receive scholarships of $4000 per year. Existing students will receive one-off payments of $8000. 

Students can begin applying for this support from 1 January 2024 and must be willing to make a 5-year commitment to the NSW public health system.

The Minns government is investing $121.9 million over 5 years in the program, as it moves to further rebuild essential services as part of its upcoming budget.

Attracting skilled healthcare workers to work in the NSW health system is a challenge, made all the harder after 12 years of underfunding and neglect by the former Liberal National government.

This has been further exacerbated by competitive remuneration and employment conditions in other states and other sectors, presenting challenges to recruitment and retention.

That’s why the Minns government abolished the damaging wages cap for NSW Government healthcare workers and delivered the largest pay increase for the workforce in more than a decade.

Improving incentives for students to enter the health workforce, by reducing financial barriers to study, will improve recruitment and retention and lift health outcomes for patients.

The scholarship program will be open to all healthcare degrees.

Each year, up to 850 student nurses, 400 medical students and 150 people studying midwifery will enter the scholarship program, along with students in other areas including paramedicine, Aboriginal health, physiotherapy and occupational therapy.

Those already engaged in study will be eligible to apply for an $8000 one-off payment upon graduation as a transitional arrangement, ensuring people who have already started studying are also recognised in this policy.

The rollout of health worker subsidies is the latest in a comprehensive suite of measures the NSW Government is undertaking to rebuild the health system, including:

• Building an engaged, capable and supported workforce, beginning with implementing safe staffing levels, with a memorandum of understanding signed with nurses just last month;
• Improving health workforce conditions, including abolishing the wages cap and rolling out study subsidies.
• Enhancing the accessibility and delivery of healthcare across rural and regional NSW, including with a boost to regional paramedics; doubling rural health incentives and expanding the single employer model.
• Safely delivering the essential health services our community deserves, including through a special commission of inquiry into health funding.
• Reducing surgery wait times with the establishment of a surgical care taskforce.
• Providing the health infrastructure and technology for communities across NSW, including by embracing urgent care and virtual care, relieving pressure on our hospitals.

The Minns Labor government remains committed to improving the essential health services our community deserve and building an engaged, capable and supported workforce.

At the same time, NSW is confronted with deteriorating fiscal conditions, left by the Liberals and Nationals.

In addition to record debt, the Liberals made more than $7 billion worth of promises they could not pay for, including not permanently funding 1112 nurses and midwives working in NSW hospitals.

The Minns Labor government is now making the careful and necessary decisions to address the holes left in the budget by the Liberals to ensure we can fund quality healthcare that people rely on.

Minister for Health Ryan Park said:

“We know that not only do we need to recruit more health workers, we need to retain them, and today’s announcement bolsters that effort.

“This is just one of the suite of measures we are undertaking in building a supported workforce.

“By boosting and supporting our health workforce, we will improve patient outcomes.”

The NSW Government, in partnership with Cessnock City Council and Singleton Council, will hold a public memorial service next month to honour the memory of the lives lost in the Hunter Valley bus tragedy. 

The service will be an opportunity to acknowledge and bring together those who have been affected by the accident, including family and friends of loved ones whose lives were lost, those who survived, and the first responders, including emergency services personnel.  
 
The bus crash, which tragically claimed the lives of 10 individuals on June 11 and injured many more, has touched the lives of countless Australians.  
 
The memorial will be held at the Singleton Showground on Saturday 21 October, commencing at 11am.  
 
Members of the community are encouraged to attend the public memorial service to show their support and gather in solidarity on this difficult journey. 

A ticket is not required to attend and the event will be live streamed on the NSW Government website.  
 
Following the service, a free communal barbecue in partnership with local charitable organisations will be hosted at the showground, as an opportunity to continue providing comfort and support for all. 
 
The Hunter Valley Bus Tragedy Fund, administered by Rotary, closed yesterday and has received overwhelming support from generous donors raising close to $1.5 million. The NSW Government donated $100,000, with the funds raised playing an important role in assisting those affected. 
 
For the most up-to-date information on the memorial, visit the webpage. 
 
NSW Premier Chris Minns said:
 
“This memorial service will allow us to come together to grieve, support one another and pay tribute to those affected by this unimaginable tragedy. 
 
“It also provides an opportunity to recognise the courage and resilience of the frontline emergency service workers who attended the scene and treated patients in our hospitals.” 
 
Singleton Mayor Sue Moore said: 
 
“The support that continues to be provided to our community since this tragedy has been overwhelming. Many people’s lives have been affected and it’s important that we stay strong. 
 
“The memorial will be a chance for our tight-knit community to rally together and remember all those lost in the accident and support each other.” 
 
Cessnock Mayor Jay Suvaal said: 
 
“So many people from our communities have been affected by this tragedy. The support shown for the families and victims of this tragedy, not just from locals but all around the nation, has been greatly appreciated. 
 
“A memorial will be an important step in the long healing process, and reminds our residents that they’ll never walk alone, as our community looks after one another.” 
 

The NSW Government is boosting funding for the state’s 20 women’s health centres in its first budget, delivering on its election commitment to improve access to healthcare for women.

The Minister for Health Ryan Park and the Minister for Women Jodie Harrison today announced the 2023–2024 NSW Budget will allocate an additional $34.3 million for the Women’s Health Centre Program over the next 4 years.

The state’s 20 women’s health centres provide tailored healthcare, supporting vulnerable women with their physical and mental health, sexual and reproductive health, as well as preventative classes, events and support groups.

The Women’s Health Centre Program provides face-to-face support to more than 50,000 women across NSW each year – predominantly vulnerable and at-risk women.

These centres are vital in providing a safe place for women who might otherwise fall through the cracks and are critical in removing barriers to health care by providing women the care they need in their own communities.

The new investment will mean centres are able to:

• increase staff numbers
• put downward pressure on waitlists for counselling appointments
• offer healthcare and counselling services to more women
• adapt services to emerging demographic trends and population growth
• adapt services to address the complexity of presenting health issues.

Locations with centres that will benefit include Hunter, Bankstown, Blacktown, Cumberland, Fairfield, Liverpool and Penrith, as well as the Central Coast, Illawarra, Lismore, Shoalhaven and South Coast.

The Minns Labor government is committed to rebuilding the essential health services our communities deserve and rebuilding an engaged, capable and supported workforce.

The Minns Labor government is making careful and responsible decisions to address the holes left in the budget by the former government so we can fund the healthcare services women rely on.

Minister for Health Ryan Park said:

“As Minister for Health it is one of my priorities to improve access and remove barriers women face in accessing healthcare services.

“We’re providing a safe space for women to access female healthcare workers who can provide inclusive and culturally appropriate care.

“Women’s Health Centres offer a number of different services, which we know have a really positive impact on health outcomes for women.

“This investment will ensure more women have access to these key health services across NSW.”

Minister for Women, Prevention of Domestic Violence and Sexual Assault Jodie Harrison said:

“The Women’s Health Centres are crucial to women’s health care, providing vital support to those escaping domestic and family violence, from lower socio-economic backgrounds and in regional and remote locations.

“They provide a welcoming environment which empower women by promoting their physical, mental and emotional wellbeing.

“The Minns Labor Government is delivering on our election commitment to the greater community, by supporting women’s health.”

Member for Summer Hill Jo Haylen said:

“This is an important commitment from the Minns Labor government that will see a welcome boost to women’s healthcare in the Inner West and across NSW.

“These centres are a crucial source of support and healthcare for so many women and I’m so pleased to be part of a government that cares and is ready to make worthy investments like this one.”

There will be a new way to get around Wollongong from the end of this month, with locals able to jump on a shared Neuron e-scooter, as part of a trial which is expected to run for 12 months.

The trial will begin on Friday 29 September and will allow riders 16 years and older to hop on an e-scooter on eligible roads and shared paths around the city.

The scooters are limited to a maximum of 20km/h on bicycle paths, or roads with a speed limit up to 50 km/h. For any shared paths that accommodate pedestrians, bicycles, prams and dog-walkers, a speed limit of 10km/h is in place. E-scooters are not permitted for use on footpaths.

Geofencing technology will also control where e-scooters are ridden and parked, and how fast they can travel in certain areas.

Currently, only e-scooters provided through a shared scheme are permitted for use in approved trial areas, privately owned e-scooters cannot be used in public areas. 

Riders will be able to unlock and use e-scooters by downloading Neuron’s app.

Find out more about the trial in Wollongonglaunch.

The e-scooter trial in Armidale also kicked off this week on Thursday the 7th of September.

Transport Minister Jo Haylen said: 

“E-scooters will offer an exciting new and sustainable way to get out and explore Wollongong and I look forward to finally kicking off a trial in the middle of one of our state’s major city centres.

“Transport for NSW and Wollongong Council have worked closely to ensure this trial will be safe, a useful new form of transport and importantly, will be a lot of fun!

“To stay safe while taking part in this trial, wear a helmet, follow the speed limits and don’t drink and ride – and we’ll have technology in place to make sure you follow those rules.”

Illawarra and South Coast Minister Ryan Park said: 

“Wollongong boasts an amazing array of shared paths around the CBD and along the coast. It is already a great place to get out and walk or bike ride and adding an extra option that is easy and sustainable will be a great addition for locals and tourists to explore our city.

“With this new mode of transport hitting pavements, we want to remind everyone to keep an extra eye out for e-scooters, check your blind spot regularly and leave a minimum distance of 1 metre when passing someone riding an e-scooter.”

Member for Wollongong Paul Scully said: 

“Wollongong is the best city in the world to ride a bike, so it’s the perfect place to trial e-scooters.

“Until now, e-scooters have only been trialled in parks and regional towns, Wollongong will be the first city in NSW to trial them as part of a real micro-mobility transport solution. You’ll be able to take one to work, to the beach or anywhere else within the trial zone.

Lord Mayor Gordon Bradbery AM said:

“Wollongong City Council is proud of the significant investment it has made in facilitating access right across the city to alternative transport options to cars.

“The introduction of E-scooters to the mix will provide people with another choice when it comes to leaving the car at home, and getting from A to B, and also a way for people to explore the city whether they’re tourists, or just enjoying their local area on an E-scooter.

“What is particularly exciting about this trial is that it isn’t just CBD focussed so you’ll be able to hire an E-scooter in Fairy Meadow and ride to Sandon Point and on the return trip wrap up in the CBD.

“It is a trial and community feedback will be key as the rollout progresses. We appreciate the introduction of E-scooters will be an adjustment to our transport network and we will be working closely with Transport for NSW and Neuron to ensure information about how and where to ride safely is made available to everyone.’’

Neuron Mobility, General Manager Jayden Bryant said: 

“We are delighted to have been chosen by Wollongong City Council to provide our e-scooters as part of the trial and thank them for their trust and support. E-scooters are really well suited to Wollongong and they will be a great way for locals as well as tourists to travel in a safe, convenient and environmentally-friendly way.

“Elsewhere in Australia, e-scooters are significantly reducing congestion and emissions while also helping to boost the local economy. Safety is our top priority, it dictates our e-scooter design and also the way we operate them. Our e-scooters are packed with a range of cutting-edge safety features and we know from experience in other cities that riders really appreciate this.”

The NSW Government is asking the community to consider fostering a child and help care for the state’s most vulnerable children.

During Foster and Kinship Care Week, the Government is highlighting the 15,000 children and young people in NSW in the child protection system, and the dire need for community action.

Without additional community support, more vulnerable children will end up in hotels and motels.

Foster care numbers plummeted under the former government, putting more pressure on a system that is already breaking at the seams; including a $280 million budget shortfall left by the former government, which risks vulnerable children being returned to unsafe situations.

Each year, 600 new foster carers are needed in NSW to take care of children who can’t live safely at home. Carers can be family members or foster carers, and come from a diverse range of backgrounds and all walks of life.

All carers receive training, support and an allowance to help them throughout their care journey.

Foster and Kinship Care Week provides an opportunity to thank the thousands of current foster and kinship carers across NSW who provide nurturing and stable homes for children and young people.

Dedicated carers:

• provide a safe, nurturing and secure home
• assist with children’s education, health, wellbeing and connection to culture
• create a homely environment, with birthday celebrations, sport and school drop offs.

To learn more about becoming a foster carer visit myforeverfamily.org.aulaunch.

Minister for Families and Communities, and Minister for Disability Inclusion, Kate Washington, said:

“There are amazing foster and kinship carers right across NSW, but we desperately need more.”

“Right now, there are vulnerable children who don’t have a safe place to call home.”

“This week is the perfect time to think about changing a child’s life by becoming an emergency, respite or longer term foster carer.”

CEO of Adopt Change operating My Forever Family NSW, Renée Carter said:

“We are honoured to be celebrating the incredible carer families in NSW who step up and provide safe, nurturing homes for children. Carers play a crucial role in providing security and warmth to a child when they are at their most vulnerable.”

“During Foster and Kinship Care Week celebrations, we’d love to see more community members who are considering becoming a carer to reach out and take the next steps. There are different types of foster care to suit your availability. You could be the special carer to make a difference in a child’s life through providing the stability that comes from having a safe place to sleep, space to play and support to learn.”

The NSW Government is investing a landmark $3 billion in the NSW Budget for new and upgraded hospitals across greater Western Sydney, one of the largest investments in Western Sydney health infrastructure in recent memory.

The 2023-24 NSW Budget includes an additional $400 million to build the $700 million Rouse Hill Hospital – the first brand new adult public hospital to be built in Western Sydney in more than 40 years.

The new Rouse Hill Hospital will include an emergency department, maternity services, ambulatory and outpatient care and medical imaging services.

The NSW Government has an ambitious agenda to rebuild essential services, including healthcare, that communities across greater Western Sydney rely on. 

That’s why the Budget also includes:

• $550 million for Fairfield Hospital, in its first major redevelopment since it opened in 1989.
• $350 million for Canterbury Hospital, in its first major redevelopment since 1998.
• $1.3 billion to build the Bankstown-Lidcombe Hospital on a new site, the first major investment since the two hospitals merged in 1997.
• $120 million for additional beds at Blacktown and Mt Druitt Hospitals.

Together, these landmark investments will deliver on the NSW Government’s pledge for 600 new hospital beds across greater Western Sydney. 

Hospitals across greater Western Sydney have been left overwhelmed and underfunded after 12 years of neglect by the Liberals and Nationals, including not permanently funding 1,112 nurses and midwives currently working in NSW hospitals.

Data from the Bureau of Health Information (BHI) shows almost 53,000 patients presented to emergency departments across the Western Sydney Local Health District in the April to June quarter, 2023.

The data also reveals these patients are facing long wait times in emergency departments, with just 42 percent of patients starting their treatment on time.

Addressing these challenges has been made more difficult by the state of the budget we inherited, with record debt, $90 billion worth of privatised assets and $7 billion in unfunded promises.

We can’t undo 12 years of Liberal and National neglect of our health system overnight – it will take time.

But we are undertaking a comprehensive suite of reforms to rebuild our health system.

These historic investments in new and upgraded hospitals in greater Western Sydney are possible because the NSW Government is making responsible decisions to repair the budget and reprioritise spending on essential services.

The NSW Government is setting out a long-term plan to repair the budget so we can deliver essential healthcare services for families across greater Western Sydney, reduce waiting times and improving access to timely, high-quality healthcare.

NSW Premier Chris Minns said:

“We were elected with a clear mandate to rebuild essential services and invest in our frontline workers.

“Our healthcare system has been under incredible pressure in recent years. Chronic underinvestment by the former Government didn’t help.

“The thousands of people moving into these growth areas every year deserve world class healthcare – which my government will deliver.

Minister for Western Sydney Prue Car said: 

“Western Sydney is the engine room for the state’s growth so it deserves a proportionate rate of investment in services. 

“After many years of false promises, this historic level of investment by the Minns Labor Government delivers what the community has been crying out for. 

“I’m proud to be part of a government that is delivering on such a scale for the region.”

Health Minister Ryan Park said:

“Families living across greater Western Sydney have a right to timely, equitable healthcare and they should have confidence in their local hospitals.”

“That’s why we’re committed to delivering the essential services our community deserves and expects all while building the healthcare infrastructure to meet the need of these growing communities into the future.

“This is all part of our ambitious and comprehensive plan to invest in the state’s healthcare system and support and increase our frontline healthcare workforce.”

The Minns Labor government will invest a record $3.5 billion over 4 years to deliver a massive pipeline of more than 60 new and upgraded public schools in Sydney’s rapidly growing western suburbs.

Labor’s investment in Western Sydney schools is $500 million higher than the former Liberal National government’s budget for the area.

The funding injection will ensure there are quality public schools for the city’s growing communities into the future.

The capital unlocked in this budget will fund the following new schools:

• new primary school near Sydney Olympic Park
• new high school for Wentworth Point
• new high school for Melrose Park
• new primary school for Gables
• new primary school for Melonba
• new high school for Melonba
• new primary school for Nirimba Fields
• new primary school for Tallawong
• new high school for Schofields and Tallawong
• new high school for Jordan Springs
• new primary school for Gregory Hills
• new high school for Gledswood Hills and Gregory Hills
• new high school for Leppington and Denham Court
• new high school for Edmondson Park
• new primary school for Liverpool (Gulyangarri Public School).

The Minns Labor government will also upgrade schools to deliver new facilities and address overcrowding.

Suburbs where schools will be upgraded include Austral, Cecil Hills, Condell Park, Dundas, Eagle Vale, Kingswood, Leppington, Northmead and The Ponds.

The delivery of these new and upgraded schools represents a key election commitment from the Minns Labor Government, which came to power with a mandate to fix the school infrastructure backlog in Sydney’s growth areas.

As part of its plan, the Minns government remains committed to building 9 schools promised but not started under the Liberal National government’s WestInvest scheme. 

The government is due to hand down the findings of its Enrolment Growth Audit later this year, which will ensure education is factored into future planning for the city and address the former government’s failures to provide local public schools in expanding suburban areas.

These essential infrastructure builds and upgrades can be funded because the Minns Labor government is making the difficult but responsible decisions with spending.

The Minns Labor government is setting out a long-term plan to gradually repair the budget in a sustainable way, to reprioritise spending to where it is needed most, and to rebuild the essential services that we all rely on.

And it will be done without privatising essential public assets or imposing an unfair cap on the wages of our essential service workers.

Premier Chris Minns said:

“Thousands of families moved into suburbs like Schofields, Tallawong, Nirimba Fields and The Ponds on the promise of local schools for their children, but the former government never delivered them.

“We were elected with a mandate to rebuild essential services – and there is nothing more essential than the education of the next generation of children.

“We are a government with a clear focus – managing our finances responsibly so we can provide support when you need it most and improve the essential services that we all rely on, now and into the future.”

Deputy Premier and Minister for Education Prue Car said:

“For years, Western Sydney’s rapidly growing communities have been crying out for more public schools for young families, but the previous Liberal National government chose to leave them behind.

“This Labor government understands how important it is for all young families to have access to a local public school, where children can get a high quality, education without a lengthy commute or expensive fees.

“We are not only building the schools that families need – we are ensuring those schools are properly staffed with qualified teachers who are appropriately paid, working to undo the former government’s erosion of pay and conditions that left NSW in a teacher shortage crisis.

“The Minns Labor government is making the careful and necessary decisions to address the holes left in the budget by the Liberals and ensure we fund the essential services people rely on. We are focusing on what people need most, and that’s essential services like high quality local schools.”

The NSW Minns Labor Government will not proceed with a costly rebuild of Willow Grove in Parramatta, following comments from Heritage experts that a rebuild would be an act of “fake heritage”.

The former Liberal Government demolished Willow Grove in late 2021, with the promise of rebuilding the heritage mansion at an alternative site.

It has now been revealed the former Liberal Government never allocated funds for the reconstruction.

The former government never resolved an alternative site.

Moving forward the Minns Labor Government has outlined three priorities to address the Parramatta community cultural and heritage needs:

1. Supporting the new Powerhouse Museum at Parramatta to appropriately engage with the heritage of their site.
2. Working with local community to consider the options to secure the Roxy Theatre for future generations. This includes developing a comprehensive Final Business Case for reactivating the venue.
3. Seek advice from the heritage and local community stakeholders the best way for the materials from Willow Grove to be used.

Minister for the Arts, John Graham said:

“It was a tragedy that Willow Grove was demolished, particularly against the community’s strong wishes to preserve it. However now that it’s been pulled down, it’s a terrible idea to try to rebuild it.

“More than that, the former government did not allocate funds or find a site for reconstruction, despite their promises that Willow Grove would be rebuilt.

“Given the heritage and broader community are strongly telling us that attempting to rebuild the beloved Willow Grove would be a bad use of taxpayer money – that it would be a “fake heritage” – and that there’s no money to do so, today we are drawing a line under this sorry saga. Willow Grove will not be rebuilt.

“The government will focus on heritage sites in Parramatta – such as the Roxy Theatre.

“Willow Grove had historical significance as a key site of female and First Nations history in the area, as well as an important site in the history of nursing and midwifery in NSW. Innovative and creative solutions should be found to honour those histories.

Background:

• Willow Grove was built between 1870 and 1880 and formerly sat at 34 Phillip Street, Parramatta. It was deconstructed to make way for the Powerhouse Parramatta, currently under construction and due to open in 2025.
• Community groups had long opposed the deconstruction of Willow Grove.
• In November 2021, the Willow Grove Community Reference Group was formed to work in partnership with community and stakeholder groups on the relocation and use of Willow Grove.
• April 2022, the National Trust withdrew from the Willow Grove Community Reference Group, citing concerns that the mansion could not be authentically reconstructed.
• Prior to deconstruction, the condition of Willow Grove was extensively recorded by Create NSW. Willow Grove was carefully catalogued, dismantled and all building elements safely placed into secure storage. The collection includes items of local heritage importance, including the slate roofing, windows, the front door, timber framing and stairs, the front fence and over 90 per cent of the original bricks.
• The Powerhouse Museum Parramatta has developed a heritage interpretation plan of the site.  This plan includes the development of collaborative projects with First Nations communities. In relation to Willow Grove the following interpretation work will be delivered;
• Sandstone– reinstatement of sandstone flooring from an original Willow Grove outhouse will be installed in the flooring of the undercroft. The sandstone flooring will be complemented by interpretive text panels outlining the history of the site including Willow Grove and its associated buildings.
• Object Stories– archaeological relics (bottles, plates, teapots) excavated in the area surrounding Willow Grove will be accessioned into the Powerhouse collection. Displays of these objects will be utilised in Powerhouse programming and they will be digitised on the Powerhouse website along with further information on their origins
• Mixed Use– Powerhouse will publish a book on the history of the Powerhouse Parramatta site. The book will tell the story of the site, its development and the people who inhabited it. This will include Willow Grove- its construction, uses and changes that occurred over time.  A series of oral histories will be recorded that will form an ongoing living archive that will be accessible online and through the Powerhouse Research Library.

The Minns Labor Government is once again claiming credit for the Coalition’s work, after it announced it will build ‘new’ schools in Western Sydney.
 
Opposition Leader Mark Speakman said Labor is reaping the rewards of the groundwork put in place by the Liberals and Nationals, with several of the schools already in the development stage.
 
“Most of these projects were only made possible by the planning and funding set aside by the former Government, but the Government is yet again trying to claim ideas that aren’t theirs,” Mr Speakman said.” 
 
“By the Government’s own admission, $3 billion of today’s announcement is from the last Budget delivered by the Liberals and Nationals. Proof of this includes the fact that construction began in 2022 for the new high school at Wentworth Point and work started at Gulyangarri Primary School in Liverpool before Labor was elected.”
 
“During our time in Government, the Liberals and Nationals delivered $9.1b in new and upgraded schools since 2017, with an additional $8.6b in the pipeline for future projects, so that is more than $17.7 billion worth of school infrastructure across the state.” 
 
In the Coalition’s 2022-23 Budget, money was allocated for the following schools in various stages of delivery:

• New high school for Wentworth Point
• New primary school for Gables
• New primary school for Melonba
• New high school for Melonba
• New primary school for Nirimba Fields
• New primary school for Tallawong
• New primary school for Gregory Hills
• New high school for Edmondson Park
• New primary school for Liverpool (Gulyangarri Public)

 
Shadow Education Minister Sarah Mitchell said today’s announcement lacks detail and transparency.
 
“To say we didn’t invest in school infrastructure is another blatant Labor lie, especially considering only $500m of their announcement is supposedly ‘new’ money”, Ms Mitchell said.
 
“The Government hasn’t said if this is new money or a redirection of existing funds in the Budget. The Government needs to be up front with families about what other projects might be on the chopping block and what other parts of the state will miss out to pay for any new commitments in Western Sydney.”

The NSW Government will slash the State’s net debt by more than $4 billion by beginning the overhaul of the controversial Transport Asset Holding Entity of NSW (TAHE).

The decision will be one of the biggest debt reduction measures in the upcoming state Budget. It is the first move in ending a long-running saga that has embroiled the State’s finances for years. 

Under the changes, the Government will convert TAHE into a non-commercial public non-financial corporation similar to Sydney Trains, NSW Trains and Venues NSW.

TAHE will no longer be a state-owned corporation (SOC). It will not have to make a profit from a public rail system that the government has subsidised for more than 100 years.

The new structure will see TAHE increase its focus on maximising the value of its transport assets, especially surplus land near railway stations that could be repurposed to help solve the State’s housing shortage.

The decision to begin the transition to the new operating model this year delivers on Labor’s election commitment to reform TAHE and eliminate billions of dollars of intra-government transactions, which were required under the previous operating model.

It was made after the Government received advice that a further $615 million in funding in 2023-24 was being sought by TAHE under contractual arrangements it has with the Public Rail Operators.

The changes will eliminate this funding requirement. It will also avoid the need for the general government sector to borrow more than $4 billion the former government intended for TAHE under the previous operating model.

Under the new model TAHE will continue to receive necessary funding to maintain a safe, reliable and sustainable network, without accounting trickery.

The Government anticipates the changes will have a budget result impact of negative $384 million over the budget and forward estimates, but interest savings alone on the debt avoided will offset this impact.

TAHE’s new operating model will be implemented in three phases:

• Phase 1: August to December 2023 – The Government will commence transitioning TAHE to not-for-profit status by taking administrative actions under the State Owned Corporations Act.
• Phase 2 – by December 2023 – The Government will introduce an initial wave of legislative changes to allow for the introduction of the new operating model.
• Phase 3 – By June 2024 – The Government will introduce further legislative changes to remove TAHE’s status as a SOC. The corporation will be renamed.  
• During the transition, TAHE will partially use its cash balances on hand and operating cash flow to fund its projects and activities, reducing reliance on grant funding.

The introduction of the new TAHE model is likely to see the reversal of the $20 billion write-down that occurred when TAHE began operating, as the State’s rail assets are revalued to reflect the new operating model.

The government will work with the Auditor-General to minimise any delay to the 2022/2023 Total State-Sector Accounts that might result.

Under the previous government:

• More than $5 billion in intra-government transactions were needed to prop up TAHE’s previous accounting treatment.
• A former Auditor-General, writing in the Sydney Morning Herald, labelled TAHE a ‘vehicle of deception’, which hid the true cost of operating the railways from the state’s accounts.
• The Legislative Council’s Public Accountability Committee found that the then NSW government failed to give proper consideration to safety, accountability and risk mitigations prior to creating TAHE.
• Millions of dollars were spent on consulting firms including PWC, KPMG and the Boston Consulting Group propping up the TAHE budget trick.

Treasure Daniel Mookhey said:

“We’re slashing the State’s net debt by more than $4 billion by fixing TAHE.

“This Government prefers to spend the public’s money fixing the state’s essential services, not propping up a budget con that went terribly wrong.

“We’re determined to bring an end to this saga. The State’s reputation for budget honesty was tarnished unnecessarily by the previous government’s decision to use TAHE to hide the true cost of operating the railways from the State’s accounts.”