NSW Government
Planning

Building Homes for NSW

24 June 2025

The 2025-26 Budget builds on our historic reforms to deliver more homes for more people, with new construction incentives, strengthened planning and more skilled workers to get the homes people need built faster.

Accelerating Growth

The 2025-26 Budget launches a new Pre-sale Finance Guarantee to accelerate the delivery of new housing across NSW. The NSW Government will guarantee pre-sales for $1 billion of housing projects at a time through a revolving fund to help mid-tier developers secure the finance they need to start building sooner.

The Budget provides certainty for developers to get build-to-rent housing moving. Eligible new build-to-rent developments will now be able to access a land tax concession of a 50 per cent reduction in assessed land value indefinitely, rather than the 2039 end date set by the former government. This is the most generous tax incentive of its kind in the country and will support the construction of more high-quality rental housing.

Under the draft Works-in-Kind guidelines, developers building approved infrastructure projects, such as major roads or setting aside land for schools or other community infrastructure, will be able to claim their costs against the Housing and Productivity Contribution (HAPC). This will deliver more housing and infrastructure more quickly.

Ensuring Building Quality

Building quality is one of the top priorities of the Minns Labor Government and this will be hammered home with an additional $145.1 million for Building Commission NSW.

As the Government focuses on increasing housing supply, it recognises the need to remain vigilant around the quality of construction.

This funding will ensure the Building Commission, with its team of more than 450, can continue its regulation and compliance work including its "Anywhere, Anytime" building inspections, as well as its targeted, intelligence-driven compliance operations from the Sydney metropolitan area to regional NSW.

We need a strong cop on the beat to ensure quality homes are built and this funding package will reassure homeowners that the Minns Labor Government is doing everything it can to lift the standard of construction and minimise major defects in housing construction right across the state.

Investing in skills

To build the homes NSW needs, more than 23,000 new construction apprentices will be trained over the next two years as part of a historic $3.4 billion investment in TAFE NSW and skills funding. The Government's record investment in skills and training also includes:

  • $40.2 million to fund up to 90,000 fee free apprenticeships and traineeships for priority qualifications at TAFE NSW and NSW Smart and Skilled training providers
  • $13.8 million to support 4,800 existing workers to enter the NSW construction workforce over the next two years, as well as to re-train existing skilled migrants to the point of trade accreditation. This includes:
    • $2 million to encourage up to 3,000 NSW school students to choose a career in the construction workforce under the Trade Readiness Program.

This investment builds on the NSW Government's $252.2 million investment to employ an additional 1,300 apprentices and trainees in the local government sector, announced last year.

Streamlining approvals

Building on historic reform of the planning system, the 2025-26 Budget injects a further $122 million to streamline housing delivery without compromising on quality:

  • $83.4 million for additional planning resources to accelerate planning approvals and speed up the delivery of homes. This includes $10.6 million to continue the work of the Housing Delivery Authority, which has streamlined approvals for 53,500 homes across 136 residential projects since beginning its work in January
  • $20.9 million to support regional councils to bring forward critical enabling infrastructure for new homes during the National Housing Accord period by funding interest on loans
  • $10.1 million for additional resourcing and technical support on water connectivity to support our new housing developments
  • $7.6 million will enable the work of the NSW Government's land audit to continue. So far, the audit has led to the release of sites with the potential to deliver more than 8,200 well­ located homes.

Connecting communities

At the same time, we are building better connected communities with improved transport infrastructure and better roads.

The 2025-26 Budget provides more than $2.8 billion in road safety funding, including for safety trials, intersection upgrades and new barriers and median strips, delivering on commitments in the 2026 Road Safety Action Plan.

In partnership with the Australian Government, this Budget includes a further $909.2 million for new and additional commitments across NSW, supporting projects including:

  • A close to $150 million package of new funding for the Aerotropolis road network, including upgrades at the Elizabeth Drive and Luddenham Road intersection, planning for Devonshire Road, Devonshire Link Road and Bradfield Metro Link Road, and an expanded incident response team to support Sydney's south-west
  • A $156 million package for North West Sydney Roads, including planning for road upgrades around the new Rouse Hill Hospital
  • $500 million for Mona Vale Rd West
  • $100 million for Homebush Bay Rd.

And $452 million will maintain and expand bus services to respond to strong demand across the state and ensure that communities are better connected. This includes:

  • $150 million to create, reinstate and extend routes, improve connections to rail services and increase school services
  • $26 million in new buses to support this expansion
  • $56 million to deliver 50 articulated, or "bendy" buses to address bus shortages across Sydney.

Homelessness Crisis Intervention

The Budget invests $30.4 million in a new Crisis Intervention package to support people in urgent need of housing, including $20 million to expand crisis accommodation and $10.4 million over four years for the Bill Crews Foundation.

This immediate relief gives services breathing room while the Government delivers a long­ term fix of more public and affordable homes through the multi-billion dollar Building Homes for NSW program.

It is the largest housing investment in our state's history, prioritising real support and backing services that help people through crisis with dignity and care.

Landmark reform to deliver homes

The 2025-26 Budget builds on the strong foundations we have laid to make sure more people have access to more homes across NSW.

Our new Low and Mid-Rise Housing Policy is set to deliver 112,000 homes across NSW over the next five years, while Transport Oriented Developments will deliver 230,000 more affordable, well-located homes around 45 transport hubs.

Planning approvals are already 17 per cent faster than in March 2023, applications to build are up 28 per cent on last year, and more than 70,000 homes are under construction.

We have created a better, fairer system for 2.3 million renters and have helped more than 60,000 first home buyers achieve their dream with no or discounted stamp duty under our First Home Buyers Assistance program.

And there's more still to come as the Minns Labor Government works to build a better NSW for today and for future generations.