NSW budget targets long-term solutions to current housing woes

The Minns government’s housing and infrastructure plan includes:

• $1.5 billion to build infrastructure such as roads, parks, hospitals, and schools to support the construction of new homes across Sydney, the Lower Hunter, Central Coast, and the Illawarra through the Housing and Productivity Contribution.
• $400 million reserved in Restart NSW for the new Housing Infrastructure Fund, to deliver infrastructure that will increase housing supply across the state.
• $300 million for Landcom to accelerate the construction of thousands of new homes, with 30 per cent dedicated to affordable housing.

The government believes these reforms “provide the backbone infrastructure so that more homes can be delivered”, Premier Chris Minns stated.

“It is critical that new communities where housing growth is occurring have access to high-quality infrastructure and open space,” he said.

The 30 per cent of new housing allocated for affordable housing will target infill sites and government land for their development.

Outlined in the budget was the establishment of Homes NSW, an organisation tasked with delivering better outcomes for public and social housing tenants, delivering more affordable and social housing, and reducing the number of people experiencing homelessness within the state.

The government’s $224 million Essential Housing Package, aimed at addressing supply and providing crucial support to the state’s most vulnerable residents, includes:

• $70 million in debt financing to accelerate the delivery of social, affordable, and private homes, primarily in regional Australia.
• $35.3 million to continue providing housing services to Aboriginal and Torres Strait Islander families.
• $35 million to support critical maintenance for social housing.
• $20 million reserved in Restart NSW for dedicated mental health housing.
• $15 million to establish an NSW Housing Fund for urgent priority housing and homelessness measures to confront the existing crisis.
• $11.3 million to extend the Together Home program.
• $11 million in urgent funding to Temporary Accommodation in 2023–24 to support rising homelessness.
• $10.5 million in funding to the Community Housing Leasing Program.
• $10 million Modular Housing Trial to deliver faster quality social housing.
• $5.9 million towards specialist homelessness services to address the increasing demand for 2023–24.

In addition to this, the government will invest $60 million to support new build-to-rent trials in the South Coast and Northern Rivers.

Premier Minns also revealed the budget includes measures aimed at increasing the number of homes built in the state by quickening the planning system, including:

• $24 million to establish a NSW Building Commission to support high-quality housing and protect home buyers from substandard buildings.
• $9.1 million to assess housing supply opportunities across government-owned sites, including for the delivery of new social housing.
• $5.6 million for artificial intelligence to deliver planning system efficiencies.
• Overhauling and simplifying the planning system by redirecting resources from the Greater Cities Commission and Western Parkland City Authority.

Mr Minns stressed that “the creation of a standalone Building Commission won’t just deliver better-quality homes; it will also let NSW Fair Trading focus on its core business – protecting consumers”.

He explained NSW Fair Trading will do this by:

• Working with the NSW rental commissioner to better protect the rights of renters and modernise the system to make it fairer.
• Delivering an additional $1 million in funding for renters’ advocacy organisations.
• Making sure products are safe and holding businesses that break the law accountable.
• Working to resolve strata disputes before they end in expensive legal battles.

On top of the measures outlined in the budget, Mr Minns detailed the government’s intentions to tackle the housing crisis by developing further policies to complement existing work.

This includes rebalancing population growth around major infrastructure investments and moving significantly higher-density planned development closer to central Sydney, auditing all NSW government’s landholdings to identify surplus land that could be used to address the state’s housing crisis, and changing self-assessment powers for certain social, affordable, and public housing providers to ensure more homes can be built quicker.

“Today is another step in the right direction to rebuild our housing system,” the Premier added.

“That means more money to build social and affordable homes as well as funding for vital homelessness services that some of the most vulnerable people of NSW need,” he concluded.