How the NSW Government Plans to Fix the “Housing Crisis”

The NSW government believes housing availability and affordability have reached a crisis point, recently naming it as “the biggest single pressure” facing residents of the state.

With this in mind, NSW Treasurer Daniel Mookhey recently handed down the 2023-24 budget, revealing the Minns Labor government’s plans to address these key issues.

With a $2.2 billion Housing and Infrastructure Plan at the core of its efforts, the government aims to provide immediate relief while also focusing on long-term planning. Here’s a breakdown of the key initiatives:

Supporting First Home Buyers

First home buyers often find it challenging to enter the housing market, given the costs involved.

To make it easier, the NSW government is expanding the First Home Buyers Assistance Scheme. Buyers of homes valued under $800,000 will pay no stamp duty, while those purchasing homes between $800,000 and $1 million will receive concessions.

This expansion should see five out of six first home buyers benefit from either no stamp duty or a discounted rate.

Rental Reform

Renters also stand to benefit from the new budget through the appointment of a first-ever NSW Rental Commissioner.

This role will focus on making renting in NSW fairer, more secure and more affordable.

The commissioner will also oversee the implementation of a Portable Rental Bonds Scheme and protect renters from unfair evictions by laying down reasonable grounds for terminating a lease.

Moreover, the budget plans to make it easier for renters to keep pets in their homes.

Faster Planning Program

Another key focus area is speeding up the planning process.

A total of $38.7 million has been set aside for a Faster Planning Program.

The plan involves the creation of a NSW Building Commission armed with $24 million to ensure high-quality housing construction and to protect homebuyers from substandard buildings.

There’s also $9.1 million reserved for identifying housing supply opportunities on government-owned sites, and $5.6 million earmarked for deploying artificial intelligence to make planning systems more efficient.

$2.2 Billion Housing and Infrastructure Plan

The cornerstone of the NSW government’s strategy is the $2.2 billion Housing and Infrastructure Plan. This includes:

• $1.5 billion for creating infrastructure like roads, parks, hospitals and schools to support new housing developments across key regions.
• $400 million from Restart NSW for the new Housing Infrastructure Fund to deliver infrastructure and increase housing supply.
• $300 million reinvested in Landcom, a publicly owned agency, to accelerate the construction of thousands of new homes, with 30% earmarked for affordable housing.

This plan has a dual focus: to increase the supply of new homes and to ensure these homes are integrated into well-planned communities with the necessary infrastructure.

Homes NSW backed by the $224 Million Essential Housing Package

The government also plans to establish Homes NSW, a body tasked with delivering better outcomes for public and social housing tenants. The Essential Housing Package, worth $224 million, will back this effort.

This includes:

• a $70 million financing facility to accelerate the delivery of social and affordable homes, primarily in regional NSW
• $35.3 million for housing services for Aboriginal and Torres Strait Islander families
• $35 million for critical maintenance for social housing
• $20 million reserved for mental health housing
• $15 million for a NSW Housing Fund dedicated to priority housing and homelessness measures

Need a home loan? Whether you are a first home buyer, property investor or looking to refinance to a lower rate, Shore Financial can help. To discuss your options, call us on 1300 416 700, email us on info@shorefinancial.come.au or fill in this online form.