In a world first initiative, the Government introduces the NSW Generations Fund (NGF) - a new sovereign wealth fund made possible by disciplined financial management and the State’s strong fiscal position. The NGF is a debt retirement fund for tomorrow that supports the State’s triple-A credit rating; and a fund for today that improves wellbeing of local communities through participatory budget projects.
The unprecedented strength of the NSW balance sheet means the Government can seed the NGF with $3 billion sourced from the State’s balance sheet reserves. These funds are available only for debt retirement, with growth in the NGF allowing for more infrastructure investment while keeping debt at sustainable levels.
The Fund will grow over time through investment earnings and further significant contributions into the Fund. After the sale of 51 per cent of WestConnex, the Government intends to include the State’s residual interest in the NGF.
As the NGF grows, up to 50 per cent of investment returns will support investment in local communities through the My Community Project* initiative.
My Community Project aims to improve community wellbeing across a number of key themes, including liveable communities, revitalising communities, healthy communities, and safe communities. NSW residents can propose and vote on new projects in their local area, with the projects that receive the highest number of votes to be funded by the Government.
Projects may include all ability playgrounds, community mobility services, public gardens, upgrades to local sporting facilities, public artworks and festivals, programs for at risk youth, and healthy lifestyles initiatives. Find further information on the My Community Project page.
This world first, dual purpose fund is set to benefit NSW residents across the State and set the right foundations for future generations: it is a program to build for tomorrow and deliver for today.
*My Community Project was formerly known as My Community Dividend.