New South Wales continues to be impacted by the unpredictable course of COVID-19 with considerable strains on the health system and adverse impacts on business and consumer confidence, economic activity, spending and employment.

In view of these uncertainties, Ai Group cautions against attempting in the 2022-23 year to make significant inroads to consolidate the NSW Budget. We recognise the impact of COVID-19 on the State’s fiscal position and the need to return to a sustainable budgetary position including by restocking the state’s fiscal buffers. However, we suggest that the performance of the economy over the next few years will be stronger if the private sector can replenish cash reserves, transition to living with COVID and reinvest for the future without having to face higher tax rates or additional taxes and charges in the 2022-23 year.