Federal support for planning reform

The Federal Budget earlier this month included a package to incentivise housing development in Sydney’s West as a part of the Western Sydney City Deal.

With Sydney requiring another 725,000 houses over the next 20 years to meet growing demand, the policy is aimed at achieving planning reforms that can turbocharge supply.

The Federal Government is working in partnership with the NSW and local governments on a Western Sydney City Deal to realise the potential of Sydney’s outer west.

The Western Sydney City Deal provides a unique opportunity to kick-start planning and zoning reform across eight local government areas facing strong population growth and housing affordability pressures, including through incentives for planning and zoning reform.

Funding from the budget initiative will assist in the delivery of planning reform – shaped at the local level – and ultimately the delivery of housing targets for Western Sydney.

There is currently an accurate idea of what Western Sydney can produce in terms of jobs and housing under the current planning structure, but to boost the supply of housing and jobs we need to provide certainty for future growth. More people currently travel from Western Sydney for work than to it – this needs to change if we are to work towards the vision outlined in the District plans.

The population in the west and south west will grow by over 800 thousand people over the next 20 years, yet centre job growth will only grow by about 65 thousand- there is obviously a mismatch that needs addressing

The key aspect to the City Deal will be governance – clear timelines on delivering key outcomes for each level of government will be crucial.  The amount of funding provided will depend on the reform ambitions of the NSW and local governments.

The housing package will be finalised in negotiation with the City Deal partners at the state and local level. The Western Sydney City Deal is expected to be finalised in late 2017.