NSW government announces measures to fast-track rental supply in Greater Sydney and beyond

Australia Broadcast Center

9 hours ago

New measures aimed at increasing the supply of rental homes in NSW and fast-tracking infrastructure in the outer suburbs have been unveiled by the state government.
Under the proposed changes, private developers would be allowed to build public infrastructure, such as roads and parks, on their land — with pre-approval from the state.
An existing tax cut for the owners of multi-unit properties — primarily used as rental accommodation — would also be extended.
The 50 per cent land tax discount on build-to-rent developments would remain in place indefinitely — instead of expiring in 2039 as originally planned.
The government released the details ahead of next week's state budget, as it comes under mounting pressure over Sydney's critical housing shortage.
NSW Treasurer Daniel Mookhey said the measures would give developers ''the certainty they need to build more homes, faster".
"Extending the tax incentives for build-to-rent will make it easier for developers to build, and give renters more choice," he said.
To be eligible, a building must be in the hands of a single owner and manager and include at least 50 rental dwellings.
It also must have been developed after 2020, and tenants must be offered a range of lease options, including fixed terms of at least three years.
The government is also proposing to change planning rules, to allow private developers to provide land for schools or even build roads themselves, instead of waiting for the state government to do it and contributing to the cost of the project.
Premier Chris Minns said the move would speed up the development of housing in high-growth areas where infrastructure was limited, including Greater Sydney, Central Coast, Illawarra-Shoalhaven, and the Lower Hunter.
"You can't build new homes without roads, parks, and schools to match, and the community shouldn't have to wait for them," he said.
The state government's plans to ease the housing crisis faced a massive setback last month, when its $5 billion bid to buy the Rosehill Racecourse was rejected.
It had intended to build around 25,000 homes on the site.
NSW Urban Taskforce CEO Tom Forrest recently told ABC News the government needed to look at "every other opportunity" to provide housing supply and get housing and rental costs down.
"At the moment, we're only approving 46,000 homes in the last 12 months for development, and yet the housing target for NSW is 76,000 a year," he said.
"We're nowhere near that at the moment, so we've really got to get our foot on the gas, so to speak, and get going with this agenda."