NSW government unveils housing targets

NSW Treasurer Daniel Mookhey acknowledged that housing affordability and availability represent the “biggest single pressure facing the people of NSW”, with mortgage payments or rent being the largest expense for most households, as he presented Labor’s first budget in more than a decade on Tuesday, 19 September.

“Addressing a chronic housing shortage requires a long-term plan,” Mr Mookhey said.

“The Minns Labor government is working to provide relief now while putting in the proper planning to ensure we’re ready for the challenges of the future.”

The government has projected a $7.8 billion deficit for this financial year, followed by a “modest” surplus of $844 million in 2024–25 and has taken steps to reduce gross debt by $14.8 billion by June 2026.

$2.2bn Housing and Infrastructure Plan

At the core of the budget is the $2.2 billion Housing and Infrastructure Plan, in addition to allocating $38.7 million toward improving the planning system.

The Housing and Infrastructure Plan includes:

• $300 million reinvested in Landcom to accelerate the construction of thousands of new homes, with 30 per cent of these to be affordable housing
• $400 million reserved in Restart NSW to deliver the infrastructure that will unlock housing across the state
• $1.5 billion committed for housing-related infrastructure through the Housing and Productivity Contribution

Faster planning program

The government has also initiated the creation of the new $38.7 million Faster Planning Program to expedite the planning system and protect home buyers from substandard buildings.

This program includes:

• $24 million for a NSW Building Commission to protect home buyers from substandard buildings
• $9.1 million to assess housing supply opportunities across government-owned sites, including for new social housing
• $5.6 million on artificial intelligence to make planning systems more efficient
• Overhauling and simplifying the planning system by redirecting resources from the Greater Cities Commission and Western Parkland City Authority

$224m Essential Housing Package

In addition, the $224 million Essential Housing Package, announced ahead of the budget, aims to rebuild the social and affordable housing sector.

It seeks to address the deficiency in new social housing supply and explore innovative approaches to reduce the social housing waiting list.

This package includes funding to expand temporary accommodation options, provide a more suitable environment for individuals in crisis, allocate resources to specialist homelessness services, and offer stability and certainty to those in greatest need.

The $224 million Essential Housing Package encompasses:

• $70.0 million financing facility to accelerate the delivery of social and affordable homes, primarily in regional NSW, by funding initial land and site works
• $35.3 million for housing services for Aboriginal and Torres Strait Islander people and families through Services Our Way
• $35.0 million to support critical maintenance for social housing
• $20.0 million reserved in Restart NSW for dedicated mental health housing
• $15 million towards a NSW Housing Fund for priority housing and homelessness measures
• $11.3 million urgent funding to continue the Together Home program in 2023–24
• $11 million emergency funding for Temporary Accommodation in 2023–24 to support vulnerable people
• $10.5 million additional funding to the Community Housing Leasing program
• $10.0 million for a Modular Housing Trial to deliver faster quality social housing
• $5.9 million urgent funding to Specialist Homelessness Services to respond to increasing demand

Rental reform

Renters will also have extra protections, with the recent appointment of a state-first NSW Rental Commissioner.

The commissioner will work with government to make renting fairer, more affordable, and more secure.

As previously announced, the state government is committed to implementing a Portable Rental Bonds Scheme to ease financial pressure and protecting renters from unfair evictions and has pledged to make it easier for renters to have pets in homes.

The Labor government has also allocated $60 million to support these build-to-rent trials in the NSW South Coast and Northern Rivers regions.

First home buyers

First home buyers have also received support, through the expanded First Home Buyers Assistance Scheme, which has already benefited over 1,000 first home buyers by granting them a stamp duty exemption for property purchases in the $650,000–$800,000 range.

This assistance will persist, with the government continuing to offer concessions and exemptions from transfer duty for properties valued up to $1 million for eligible first home buyers under the expanded First Home Buyer Assistance Scheme.

National Energy Bill Relief expanded

Additionally, the government has taken steps to provide relief in the energy sector.

Alongside the National Energy Bill Relief payment, which was introduced in July 2023 in collaboration with the Australian government and included a $500 electricity rebate for 1.6 million eligible families and a $650 bill relief for 300,000 eligible businesses, the government is allocating new funding to support families facing the rising cost of living.

This new energy relief funding comprises:

• An increase in the Family Energy Rebate to $250
• An increase in the Seniors Energy Rebate to $250
• An increase in the Low Income Household Rebate and Medical Energy Rebate to $350
• An increase in the value for each equipment type, up to $1,639, under the Life Support Rebate

[Related: NSW housing package to rebuild housing system]

Kate Aubrey is the senior content producer of Momentum Media's mortgages titles: The Adviser and Mortgage Business.

Prior to joining Momentum Media, Kate covered regional and breaking news for ABC Radio for more than three years.

She has a Master of Arts in Journalism from the University of Melbourne and a Bachelor of International Business and Business Management from Griffith University.

Email Kate at: This email address is being protected from spambots. You need JavaScript enabled to view it.