Planning and housing
Social and Public housing (Building Homes for NSW program)
One of the key highlights in this Budget is its focus on delivering new affordable, social, public and key worker rental housing.
The $5.1 billion over four years for 6,200 new social houses and 2,200 replacement homes (8,400 in total) is a refreshing start towards addressing decades of underinvestment in affordable, public and social housing by consecutive state governments.
LGNSW has consistently called for investment in public and social housing, advocating for 5,000 additional units of public and social housing each year over the next 10 years to address homelessness and affordability across the State.
The Government expects its collective investments under the banner of ‘Building Homes for NSW’ to ‘unlock 30,000 new homes’. This includes:
- Social housing – Budget investment of $5.1 billion over four years on 8,400 social homes (6,200 new homes and 2,200 to be replacement homes) and $1.0 billion to repair 33,500 existing social homes.
- Key worker rental housing – The $655.1 million for key worker and rental housing, including $450.0 million for a Key Worker Build-to-Rent Program delivered by Landcom across metropolitan areas of the State and $200.1 million for key health worker accommodation in rural and regional areas are welcomed. Current expectations are that this investment is only going to deliver around 500 homes.
In addition, the Government’s audit of government land has identified an initial 44 surplus sites that that it will make available for housing with Homes NSW and Landcom, to have the first choice of sites for the delivery of social, affordable, essential worker and market housing. Other sites will be developed into housing in partnership with the private sector.
Investments in planners and the planning system
The Budget allocates $253.7 million over four years to 2027-28 to pay for NSW Government planners and technology to speed up the assessment of development applications and deliver on the Government’s commitment to build more homes and rebalance housing around existing infrastructure. This will include $20.4 million ($13.7 million in 2024-25) to upgrade the NSW Planning Portal.
It is pleasing to see some funds being directed at fixing operational issues with the Planning Portal, which has been plaguing councils for years and contributing to development processing delays
Faster assessments program
The Budget includes $200.0 million for the Faster Assessments program to "incentivise councils" by providing grant money for infrastructure that supports housing. The incentives are tied to councils meeting and exceeding housing targets.
These grants were first announced in May, but it remains unclear how they will work, given that the government is measuring these targets by dwelling completions (not approvals). Councils do not have control over market decisions to commence/complete construction of housing.
The Transport Oriented Development Program
The TOD Program rezones areas around eight train and metro stations, supported by $520.0 million in new infrastructure – this money will come from funds collected by the Government from the Housing and Productivity Contribution.
Building regulation and the NSW Building Commission
It is good to see the Government maintaining a focus on ensuring safe and quality buildings in NSW, with resourcing for the Building Commission NSW to support its ongoing efforts to reform the building and construction industry and improve consumer outcomes.
The Government promises a $35 million boost to Building Commission NSW, for enhanced digital capabilities as it continues lifting building standards statewide.
Infrastructure for housing in regional communities
The NSW Government, with local councils, will spend $201.9 million in infrastructure to support the construction of up to 24,000 new homes in Bathurst, Port Macquarie-Hastings, Shoalhaven, the Tweed Shire and Wagga Wagga. This funding was initially announced in May and stems from the Accelerated Infrastructure Fund.
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