Economic Stimulus Options for NSW

Targeted stimulus initiatives to restore a confident and prosperous economy

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Restoring confidence in the NSW economy

Targeted stimulus options to restore a prosperous economy

In June 2021, Greater Sydney and NSW entered into an extended period of lockdown to curb the COVID-19 Delta outbreak. Faced with a significant reduction in economic activity, the NSW Government considered economic stimulus measures to support the state’s economy.

Against this backdrop, the James Martin Institute for Public Policy provided independent advice to the NSW Government, recommending a set of stimulus initiatives to restore confidence in the NSW economy.

This is a summary of the full report provided to the NSW Government in August 2021. It is in now way a reflection of the official NSW Government policy positions or deliberations.

Economic Stimulus Options for NSW
Get a free PDF copy of this report.

In August 2021, the James Martin Institute for Public Policy had the opportunity to provide independent advice to the then-Treasurer of NSW, the Hon. Dominic Perrottet MP, and the NSW Government as they considered economic stimulus measures to support the state as it emerged from an extended period of lockdown.

This is a short summary of the full report provided to the NSW Treasurer in August 2021, highlighting the Institute’s key recommendations for investment and reform.

The report constitutes independent external advice from the Institute. It in no way reflects official NSW Government policy positions or deliberations.

This project employed the Institute’s unique collaborative model that engages government and academia to work cooperatively on challenging policy issues. The core project team comprised Institute staff, a project manager and a university lead researcher.

Advice from the Expert Advisory Group (EAG) – comprised of leading economists with policy and practice expertise, who had experience in advising various governments – was gathered and considered. We also consulted a range of stakeholders and government colleagues, within the limitations of the timeframe allowed.

The project team considered more than 200 initiatives from 40 jurisdictions across 22 countries in developing an evidence base for policymaking.

This project employed the Institute’s unique collaborative model that engages government and academia to work cooperatively on challenging policy issues. The core project team comprised Institute staff, a project manager and a university lead researcher.

Advice from the Expert Advisory Group (EAG) – comprised of leading economists with policy and practice expertise, who had experience of advising various governments – was gathered and considered. We also consulted a range of stakeholders and government colleagues, within the limitations of the timeframe allowed.

About JMI

A collaborative model

We offer a unique collaborative model that engages government and academia to work cooperatively on challenging policy issues.
About JMI

The project team considered more than 200 initiatives from 40 jurisdictions across 22 countries in developing an evidence base for policymaking.

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Our proposed initiatives are designed to address 3 short-term objectives to get the whole economy moving again.

The communication of a clear and bold economic stimulus package, with a secure roadmap to provide certainty, will play a critical role in restoring business and consumer confidence.

We have prioritised options that apply to the particular set of challenges in NSW at this time and could be targeted to locations, industries, and demographics where they will have the greatest impact. We propose a set of stimulus initiatives that will deliver a combination of rapid economic stimulus alongside more sustained, medium-term uplift.

We have also applied equity-related considerations alongside these economic objectives; that is, to make sure that the least well-off households – those we know to be most affected by lockdown – are given specific consideration.

Top 10 Investment Proposals

Top 5 Reform Options

Project team

  • Libby Hackett, Project Director and CEO, James Martin Institute
  • Diana Mezei, Project Coordinator and Institute Manager, James Martin Institute
  • Erica Giulione, Lead Researcher
  • Anjali Narendra, Senior Project Manager

Expert Advisory Group 

  • Professor Michelle Baddeley, Professor of Economics and Associate Dean (Research and Development), UTS Business School, UTS
  • Professor Jeff Borland, Truby Williams Professor of Economics, University of Melbourne
  • Dr James Graham, Lecturer in macroeconomics, University of Sydney, and former Senior Economist, Reserve Bank of New Zealand
  • Professor Kathy Tannous, Associate

Stakeholder and expert consultations

  • David Broger, Executive Director, Business Western Sydney
  • David Gonski AC, Chancellor, UNSW
  • James Graham AM, Chairman of Coles Group
  • Peter Grist, Senior Economist, Economics & Industry Policy, ACCI
  • Warren Hogan, Managing Director, EQ Economics & Economic Advisor, Judo Bank, former Industry Professor, UTS
  • Michael Kaine, National Secretary, Transport Workers Union
  • Adam Kay, CEO, Cotton Australia
  • Jenny Lambert, Director, Employment & Skills, ACCI
  • Dr Ross Lambie, Chief Economist, ACCI
  • Marc Miller, Chief Strategy Officer, Medibank
  • Sam Moreton, General Manager, Policy and Analysis, Business NSW
  • Daniel Popovski, Senior Policy Advisor, Economics & Industry Policy, ACCI
  • Ben Riley, General Manager Advocacy and Engagement, Business NSW
The James Martin Institute for Public Policy (JMI) is a nonpartisan, independent policy institute which does not adopt an institutional view on specific policy issues. This report summarises the calibrated view of the project team, which operated under a highly collaborative model. Its view was formed on the basis of an assessment of relevant academic research, stakeholder consultations, and engagement with relevant experts, including an expert advisory group (EAG). The findings and recommendations of any JMI publication do not necessarily reflect the views of the Institute, its Board, funders, advisers, or other partners. This document is a summary abridged version of the original report provided by JMI to NSW Treasury in August 2021. A full version of the original report, including background research and references, can be provided upon request at [email protected].