NSW Budget must put housing front and centre
All eyes are on Tuesday’s NSW Budget with the state election now just 9 months away.
Premier Perrottet has made housing affordability a key priority for his leadership, so first home aspirants and political pundits alike will be paying particular attention.
Housing affordability is a complex equation.
New South Wales has a growing population seeking diverse housing options. New patterns of demand are emerging as metro areas face disruption from the regional housing boom driven by tree and sea-changers.
The housing industry itself is facing headwinds as higher material costs, labour shortages and unprecedented weather patterns create a perfect storm for construction.
Interest rate rises have been sharper than many predicted.
And there is now strong speculation that the government will announce stamp duty reform in next week’s budget to ease barriers to market entry.
There are many factors at play but the underlying challenge remains delivering more housing supply and housing options for the residents of NSW.
We are facing a red alert housing supply crisis in NSW.
We need an efficient planning system and a tax policy that promotes new investment into housing stock.
Firstly, Tuesday’s budget must prioritise the approval process for new builds.
The planning system in NSW is amongst the most complex in the world. Substantial reform presents the opportunity to kickstart a new productivity supercycle in our state.
The budget must address streamlining approvals, the release of properly zoned land and improving responsiveness in the system. Strengthening these levers must be supported by continued cultural emphasis of collaboration across government.
The sheer amount of planning policy released over the last few years has been significant and it is now time for the Budget to prioritise planning delivery, implementation and enablement.
Secondly, enabling infrastructure must be provided in the Budget to deliver housing.
The Government’s accelerated infrastructure fund has been a positive initiative particularly when targeted at growing areas. Further growth corridors need to be prioritised with Greenfields areas needing transport connectivity, water and sewage to convert land into genuine housing land.
Existing brownfields areas also need continued investment into transport. To this end it was encouraging to see government commit to Stage 2 of the Parramatta Light Rail.
Thirdly, support for social and affordable must continue in conjunction with industry and other stakeholders.
The NSW Land and Housing Corporation has huge potential to provide more social and affordable housing, particularly in regional areas.
Government cannot do it alone and genuine partnerships with local government, community housing providers and NGOs are required to keep pace with the growing need for social and affordable housing.
The Budget must support this goal and include support for the Aboriginal Housing Office to ensure our state’s continue putting roofs over the heads of some of the most vulnerable people in NSW.
Lastly, the Budget must back the growth of our regions.
The creation of the Greater Cities Commission heralds a shift away from a metropolis of three cities strategy to a new megaregion strategy containing six cities – across Eastern Harbour, Central Rivers and Western Parklands, to the Illawarra, Central Coast and Hunter.
This is a tremendous shift will require significant ongoing funding for the vision to come to fruition and walk the talk.
Smart planning decisions need bold infrastructure calls such as the recent $0m announced for fast rail to the Central Coast.
The property industry accounts for 1 in 4 wage earners in NSW.
By backing this industry, the Budget can not only create more roofs over heads and puts keys in doors but create more job prospects for current and future generations.
Luke Achterstraat – NSW Executive Director, Property Council of Australia