Forget going teal. The NSW government is seeking to become the first in Australia to place women at the centre of its long-term economic agenda in a massive program that seeks to combine human capital investment, female economic empowerment and election-year priorities.
Today’s NSW budget from Treasurer Matt Kean combines additional spending fuelled by extra revenue with an intergenerational agenda that elevates female economic participation as the key driver to achieve fiscal sustainability over coming decades, while also offering short-term cost-of-living relief and the beginnings of tax reform.
Tucked away in the “revenue” chapter of the budget papers is the long-term agenda of the government:
Over the long run, as outlined in the 2021-22 NSW Intergenerational Report (IGR), NSW revenues are expected to grow at a slower pace than they have historically. If this outcome is realised, there would be an increasing long-term ‘fiscal gap’, where revenue growth fails to keep pace with the growth in expenses. The IGR estimated this gap at 2.6% of gross state product by 2060-61.
In contrast to the federal Coalition’s final budget, which refused to address a comparable fiscal gap in Commonwealth finances, Kean wants to address this by driving increased female participation.
The IGR showed that supporting women’s economic opportunities would have the most significant impact on the fiscal gap, where women’s workforce participation increases to be equal to that of men. This is a key driver of the package of reforms outlined in this budget.
With a goal of making substantial progress towards closing the difference between male and female participation over the next decade, Kean’s budget has a long list of major and minor investment initiatives, some already announced, such as $3.7 billion in childcare and preschool funding and the transition to universal pre-kindergarten over the rest of the decade.
NSW will also provide two weeks’ additional paid parental leave for NSW public servants with no distinction between primary and secondary carers, to encourage men to share more of the early childcare load, more support for women to return to work after extended time out of the workforce, more funding for female entrepreneurs, and fertility treatment leave for public sector workers.
But the NSW government will be one of the biggest drivers of female employment itself, with big increases in spending in traditionally heavily feminised health, care and education sectors. The 3% pay rises in the next two years for public sector workers will be well below inflation (but significantly above previous public sector pay caps) and the $3000 bonus to healthcare workers will flow primarily to female workers — while its commitment of billions to expand the NSW health workforce by 13,000, with a particular focus on regional health services, will also go mainly to female health professionals.
Hundreds of millions in funding to recruit and retain childcare and early childhood workers will flow similarly.
The budget estimates that between 26,000 and 95,000 NSW women are either entering the workforce beyond current predictions or moving from part-time to full-time employment. By design or coincidence, it builds on one of the few positive legacies of Scott Morrison’s time in federal politics: the substantial increase in female participation driven by increased healthcare funding from 2015 onwards.
The glossies that usually accompany budgets are mainly vehicles for government spin, but the “women’s opportunity statement” accompanying this budget, the product of a Women’s Economic Opportunities Review commissioned earlier this year, is a long, detailed and almost academic document identifying the causes of lower female participation, lower superannuation, the gender pay gap and particular disincentives faced by Indigenous women, women with disabilities and those from diverse communities — and the logic of how the government is responding.
Its agenda is to increase participation, support women in small business, curb workplace harassment and domestic violence, improve pay and remove gender gaps in the workforce and invest more in women’s health needs.
The budget is an example of what Kean and the NSW Liberals do best: marry good policy with good politics.
After the defeat of a federal Coalition government partly due to the federal Liberals’ complete lack of comprehension of gender and workplace issues, it’s an inevitable case of product differentiation. But the investment runs much deeper and longer than the next NSW election in March 2023. If successful, it would see one of the most substantial economic and social reforms of recent decades.
What utter hogwash! What utter garbage from the neo-liberal BK! Matt Kean and this tired, I would say venal, egregious State Govt have spent the best part of the last decade in the throe of rent seekers like Transurban and the property industry more broadly and the coal and gas industry to help them get them over the line in however you define that.
An election is to be held next year in March. The Federal Liberals are out of office and look like being so for a long time (thank you Teals, bless you and your overseas Trust accounts and your numerous properties and private school soirées).
The Federal Liberals lost government largely as a result of their performance in NSW where they lost 6 seats net. The NSW Government are panicked right now. They have now after neglecting health and education for the last decade discovered schools and hospitals and now they are discovering women! And yet when Bernard tells of us how they view women and in what we they are being “discovered” we hear that they are channelling Joe Hockey and Peter Costello who only wants them for their bodies – at work or reproducing. Matt Kean Treasurer is so desperate to encourage women into the workforce, no doubt to perform all manner of horrible second rate jobs for no doubt low pay and poor conditions, that he is willing to give “NSW public servants” – all 2 of them – an extra 2 weeks PPL. Tough luck if you are not of child bearing age or you don’t want kids ever or can’t have kids. I mean really?!
“more support for women to return to work after extended time out of the workforce”. Ah? Details please? “Funding for female entrepreneurs” Like Who? Another Ita? Geena? Ellen de generes? OPRAH? Again more details. “Fertility treatment for public sector workers”. Bernard, stop it! You’re killing me! It’s late. I’m not going to sleep now. I’m laughing as I write. This is Costello on steroids. And with universal pre-Kindy, we are not just channelling Sweden, we are leading them, taking children when they are 3 out of their homes Stasi-style to attend Kindy classes.
And you’re talking up the lamentable, I would say, criminal 2-3% wage rises for teachers and nurses. They damn well deserve and should get no less than 10% up front and be better resourced which this budget does not address. You ain’t gonna recruit and retain quality or any child care workers with no decent salary. More flaws in your argument.
The increase in your female workforce participation is as a result of ever increasing mortgage repayments brought about by ever increasing property prices and is also manifested in low fertility rates. ” Give over !
“The budget is an example of what Kean and the NSW Liberals do best: marry good policy with good politics”. Give over! What the Liberals do best is privatise their responsibilities, avoid government and civic responsibility and duty moreso than Morrison if truth be known and look to rent seekers like the toll and property industries and the fossil fuel companies to take over from government at a very high price paid for by the decent and loyal citizens of NSW.
When so much journalism is just anaesthetic for one side of politics or the other, it’s so refreshing to read Keane praising or criticising both sides of politics even handedly and with careful attention to detail.
Hear, hear.
At last some political courage – and even relatively close to election. Wish the feds had some more courage.
It’s hardly courage. They’re terrified with the election coming up.
“curb workplace harassment and domestic violence, improve pay and remove gender gaps in the workforce” LOL. Curbing not stopping. Improving not pay equality, Removing gender gaps….that will be interesting. Obviously we don’t want to get too carried away! Hard to believe its 2022. So many dinosaurs still in charge. So many meaningless words.Rather like the1984 anti sexual harassment laws and equal pay legislation.This sudden interest in women sounds desperate.They have been around for a long time, after all. Nine months to go, I wonder what Kean’s baby will look like.
Federal Labor could take note.