The NSW government has been dealt a $1 billion blow ahead of its second budget after the discovery of an accounting error going back years.
The background: Development sales at Sydney Metro stations were counted twice, meaning the state's projected net debt would be about $1 billion more in the coming years than projected before the 2023 election.
The identified error adds to economic headwinds in NSW ahead of the state budget on 18 June, Treasurer Daniel Mookhey said.
The key quote: "This is a material error that has real consequences for the budget. I've written to the auditor-general to notify him about this historical error in the state's accounts." — NSW Treasurer Daniel Mookhey.
What else to know: Mookhey informed the auditor-general that the Metro City and Southwest project, expected to begin service later this year, duplicated asset sale proceeds for developments at stations.
What happens next: The state's budget is expected to become further tightened by the recently announced distribution of goods and services tax to states and territories, which leaves NSW almost $2bn less than projected.
Premier Chris Minns has called for a per-capita GST carve-up, while Mookhey has warned Australia's most populous state risks losing its AAA credit rating.
