1 hour ago
1
The Minns government has been urged to take up billions of dollars worth of Commonwealth-backed funds to build essential infrastructure, which advocates say would support more than 133,000 homes across NSW.
The Labor government announced $10 billion in grants and concessional loans under the 100,000 Homes for First Home Buyers program ahead of the 2025 federal election. The scheme was designed to support the construction of “new, well-located housing” by funding infrastructure – such as roads or water piping – necessary to support these communities.
Despite broad planning reforms, NSW housing supply has remained anaemic since the 2023 state election, with just 44,500 new dwellings completed in the year to the March quarter, lower than the year prior, and languishing behind the state’s commitment to build 377,000 homes by mid-2029.
The program requires a dollar-for-dollar commitment from states to match the Commonwealth’s funding contribution. So far, five states and territories have signed up to packages worth around $4.1 billion, with Queensland and Western Australia negotiating $2.4 billion and $1 billion deals, respectively. Around $5.9 billion of the $10 billion housing program remains unallocated.
But, alongside Victoria and the Northern Territory, NSW remains one of three jurisdictions that haven’t reached a deal with the Albanese government.
Urban Development Institute of Australia NSW chief executive Stuart Ayres said the state government could unlock $3.6 billion in housing-enabling infrastructure for “just 20¢ in the dollar.
“NSW remains the largest state yet to reach an agreement with the federal government, and further delays risk the state missing out on critical funding which would transform housing supply and home ownership opportunities for a generation of first home buyers,” Ayres said.
“This plan will deliver the right infrastructure, at the right time, in the correct locations to get more homes built in NSW.”
These works would open a pipeline of 133,190 homes, with 30,000 set aside for first home buyers.
UDIA NSW (Urban Development Institute of Australia NSW) a development body, proposed the Minns government should take on a $2.1 billion concessional loan to deliver the Upper Nepean Advanced Water Treatment Plant, $1.22 billion in matched infrastructure grants for projects already identified by the NSW government, and $300 million from a state-based development charge to fund infrastructure.
Ayres said the Upper Nepean water treatment plant was the “single biggest opportunity”, saying homes planned for the Greater Macarthur growth area in Sydney’s outer southwest cannot be delivered without it.
The UDIA said the water recycling centre would support at least 30,000 new homes in Appin, North Appin and Gilead, while relieving “network pressure” in suburbs like Leppington, Austral and Rossmore.
Ten infrastructure upgrades in Sydney’s south-west could enable 62,000 new homes, the lion’s share of the 103,000 dwellings the UDIA believes the funding could deliver. Identified projects included an arterial road in Orchard Hills, upgrading Appin Road, and building a substation in Riverstone.
Planning Minister Paul Scully said: “We are examining ways we can potentially be involved in the Commonwealth program that will deliver the best outcomes for first home buyers in NSW.”
Under the UDIA’s proposal, the remaining projects would unlock tens of thousands of new dwellings in the lower Hunter, Central Coast and Illawarra-Shoalhaven.
In January this year, the federal and South Australian governments announced an $801.5 million deal to unlock 17,000 new homes for South Australians, including nearly 7000 for new home buyers.
The funding program would benefit first home buyers by excluding property investors for a set period, with construction to commence “in or before 2026-27”, with some dwellings complete the following year.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
