NSW Premier Dominic Perrottet has promised a long-term "future fund" for every young child to get a head start on home deposits and education if his government retains power.
Mr Perrottet described the proposal as "the most significant financial security investment" in the state's history, as he officially launched his campaign at Prestons at the Liverpool Catholic Club.
Former prime minister John Howard and former foreign affairs Minister Marise Payne were among those at the Coalition event, while federal leader Peter Dutton, and former premier Gladys Berejiklian were absent.
This year, if re-elected, the NSW government will deposit $400 into a bank account of children aged 10 years and younger, and would match annual payments of $400 from parents and guardians until the child reaches 18 years old.
"From the moment our children are born, we worry about them and would constantly do anything to ensure that they have a better opportunity than we have," Mr Perrottet said.
"How do we set up our young people with a firm financial foundation to begin their lives?
"This policy is a down payment to secure the future dreams of our children."
Mr Perrottet said young people today were burdened with HECS and housing debt. He claimed under his new policy to cost about $850 million, a newborn child today could end up with $28,000 — or $49,000 with annual parental contributions of up to $1,000 — by the time they reached 18.
He said this would potentially provide a head start on buying a house and acquiring skills and education needed for a globally competitive world.
Shadow treasurer Daniel Mookhey called the policy "Australia's most complicated term deposit", questioning its benefit to families already in financial stress.
"The premier is spending more time talking about a policy he can't deliver for 20 more years," Mr Mookhey said.
"At a time where interest rates are skyrocketing, mortgages are exploding, families don't have the spare money lying around to put into Mr Perrottet's bank account.
"It seems as though the families that need the help the most will benefit the least from this policy, cause they don't have the money to put into this account."
The premier also promised to invest $1.2 billion in public schools, including major upgrades to Clovelly Public School and, and two new selective schools in Western Sydney.
The father of seven children, most of whom joined him on stage, is trying to secure a historic fourth term for his government, which has been in office for 12 years.
In doing so, Mr Perrottet projected a Liberal-Nationals government would keep the state "moving forward, building, and growing", but said they were entering the race as "the underdog".
"This election is about who you trust to manage the economy (and) secure the financial future for you and your family," he said.
Earlier, Treasurer Matt Kean satirised a "scary" future under Opposition Leader Chris Minns, depicting a state Labor government beholden to unions and lobby groups.
To form a majority government, the Coalition has to win 47 seats and it enters the race with 46.
Mr Perrottet launched his campaign in Liberal-held Holsworthy in south-west Sydney.
It has become a key battleground for former Liverpool Deputy Mayor Tina Ayyad, after she ousted long-serving Liberal MP Melanie Gibbons in a preselection challenge.
