The latest NSW budget has showcased a strong focus on housing supply and affordability as Treasurer Matt Kean revealed that the state should be back in the black in 2024/25.
Property Council NSW Executive Director Luke Achterstraat said announcements on Housing Supply measures, Stamp Duty and Shared Equity schemes were clear indications that the government has put housing at the top of their priorities.
“It’s great to see the NSW Government’s commitment to help Australian’s achieve home ownership and put housing front and centre,” Achterstraat said.
“There is no doubt we are experiencing a housing supply crisis in NSW which is putting a strain on affordability, both in terms of ownership and rentals,” he said.
“The emphasis on assisting some of the state’s most vulnerable people through this assistance program is a well-intentioned endeavour. For many Australians, their home is their most valuable financial asset so housing security can create financial security.”
Achterstraat said the $500 million committed to address housing supply in the State Budget would deliver more jobs and homes for the residents of NSW at a time when housing affordability concerns remained at high levels.
“Improving the planning system and delivering more housing supply are the biggest levers the state government has to address affordability,” he said.
“We are some 100,000 homes short of where we need to be in NSW so it is timely to support the private sector in getting on with the job of building quality homes and beautiful communities for the people of NSW”.
Achterstraat also welcomed the recognition and funding for infrastructure.
“There is an enormous difference between land that is simply rezoned and land that is ‘development ready’ – the missing ingredient is enabling infrastructure such as water, parks and transport,” he said.
“The $300 million earmarked for enabling infrastructure needs to be delivered strategically and efficiently.”
The details:
Housing
First home buyers will now have the choice of paying an annual property tax instead of stamp duty. This will cost the Budget $729 million over the next four years.
The government will also invest $780 million over two years in a shared equity scheme for single parents, key workers and vulnerable older citizens who do not have a partner to share the cost with.
The NSW government will also put aside $750 million towards unlocking hundreds of thousands of homes across the state and $550 million to maintain and grow social housing stock as well as housing for First Nations people.
Infrastructure
Over the next four years, the NSW government expects to invest more than $112.7 billion in the state’s infrastructure pipeline.
Funding will go towards Western Harbour Tunnel, extending the M6, upgrading the Great Western Highway and building a Metro network for Sydney, the start on Stage 2 of the Parramatta Light Rail and Faster Rail between Sydney, Newcastle, and the Central Coast.
The budget papers also outlined the delivery of 23 new and upgraded schools, 30 new ambulance stations and continuing to build or upgrade 45 hospitals.
Finance
The foreign investor land tax surcharge of two per cent will increase to four per cent per annum from the 2023 land tax year, generating additional revenue of $294 million over the four years to 2025-26.
Achterstraat last week said the plans were at odds with delivering more housing supply.
“International investment plays a critical role in getting many new housing projects off the ground in New South Wales. The surcharge is a tax on new development and a handbrake on new homes,” Achterstraat said.
“The doubling of the surcharge also sends mixed messages to the international community and whether their investment dollar is truly welcome in New South Wales.
“The housing supply crisis in NSW will only get worse until we have an efficient planning system and a tax policy that promotes new housing stock.”