NSW peak body urges to reduce tax hurdles to boost housing supply
Following the $182 million funding announcement to boost housing development in NSW, REINSW urged the federal government to cut taxes and streamline planning processes to deliver real results.
On Wednesday, the federal government announced an additional $182 million to boost housing development across NSW, aiming to help unlock 25,000 new homes statewide.
The funding, part of the Housing Support Program, will back nine critical infrastructure projects, including roads, sewage, and water systems, while ensuring new homes are connected to transport links and public open spaces.
In total, more than 25,000 new homes will be unlocked, including more than 14,700 in Parramatta.
The Real Estate Institute of NSW (REINSW) welcomed the federal government’s infrastructure announcement but said that while it is part of the solution to boost the housing supply, it is not enough.
REINSW CEO Tim McKibbin said unless the government addresses the high property taxes and the planning delays, the housing crisis will remain.
“Let’s be clear: The government is not planning to build any homes. That responsibility continues to rest on the shoulders of the private sector,” McKibbin said.
“Until the exorbitant tax burden the government puts on property and the delays in processing development applications are addressed, it’s difficult to see how new infrastructure projects alone will result in the delivery of more homes.
“Taxes and planning delays inflate the price of the property by at least 40 per cent and this reality is yet to be addressed.
“You don’t get more of something by making it difficult for someone to provide it to you,” he said.
REINSW is calling for a coordinated effort from all levels of government to finally address the state’s housing crisis.
McKibbin said the NSW government now has a chance to set clear expectations for processing development approvals (DAs), allowing councils that meet them to retain planning powers, while those that don’t should lose them.
According to McKibbin, councils also have the opportunity to clearly define what constitutes satisfactory development and have developers pitch projects that meet these criteria. Those who comply could have their DA approved immediately, reducing the processing application delay.
“As the system currently stands, the huge cost of planning delays prohibits new housing supply and infrastructure investment alone fails to address this,” McKibbin said.