Key Points
- NSW Premier promised a $400 per year future fund for kids if the Liberals win the next state election.
- Parents and carers will be able to make additional payments, resulting in savings of up to $49,000.
- The child will only be able to withdraw the fund when they turn 18, and only for two purposes: housing and education.
NSW Premier Dominic Perrottet has used a Liberal Party campaign launch to promise a major investment in the future of young people.
If it wins the next election, the coalition will create savings funds for all young people to spend on housing and education when they turn 18.
Mr Perrottet called it the most significant financial security investment in NSW history and said it would cost the government around $850 million.
How does the 'Kids Future Fund' work?
If the coalition wins the next state election, every child currently aged 10 and under in 2023 in NSW, and every newborn thereafter, will receive a fund with a starting investment of $400.
Parents and carers can make additional payments of up to $1000 into the accounts which the government will match to the tune of up to $400 a year, resulting in savings of between $28,000 and $49,000, depending on how additional savings are added.
Once the child turns 18 they will be able to withdraw from their fund for either education or housing, the premier said, so "they can begin to secure their own financial future".
If parents pour in $400 each year, the fund could be worth around $28,500 by the time the child turns 18, including the government's contribution. If it's $1000 each year, the fund could be $49,000 by the end of the period.
For families receiving Family Tax Benefit A, the government will automatically contribute $200 a year to the fund without parents having to contribute.
If parents want to put more money in after the child turns 18, the government won't put any funds in after that.
The child will only be able to withdraw the funds when they turn 18, and only for two purposes: housing — for example, to buy a home — or education — such as textbooks or learning materials.
Claiming to be the underdog in the poll, Mr Perrottet said it was his party's responsible financial and economic management that would "keep NSW moving forward".
"I know that every single parent here today and across the state shares one thing in common and that is that from the moment our children are born we worry about them and would do anything to ensure that they have a better opportunity than we have," he said.
What else did the NSW Liberals promise?
Mr Perrottet also announced a further $1.2 billion investment in public schools, creating a $19 billion pipeline for new and upgraded schools.
He's also previously promised to build 500 new preschools in NSW if he wins the election.
What has NSW Labor promised?
Labor on Sunday announced a plan to ease the cost of rising electricity bills for small businesses and NSW families and households under a proposed $485 million Energy Relief Fund.
Under the plan, eligible NSW small businesses will receive $315 off their energy bill and when matched by funding from the Commonwealth government's rebate scheme around 320,000 small businesses will get $630 off their bills.
The fund would also mean NSW households hit hard by energy price rises would receive $250 off their energy bill and when matched with $250 from the Commonwealth's Energy Bill Relief Fund, around 1.6 million eligible households will get $500 off their bills.
