NSW Government
Planning

Low Cost Loans Initiative

Infrastructure funding

Family time at Peace Park, Ashbury, Sydney. Credit: NSW Department of Planning and Environment / Salty Dingo

The NSW Government is investing $20.9 million to fund critical infrastructure in regional NSW that supports new housing.

The funding supports councils in reducing the cost of loans to deliver infrastructure that will support new regional homes.

The Low Cost Loans Initiative is a competitive, application-based initiative that makes it easier for councils to fund infrastructure by covering 50% of the interest on eligible loans. This means that essential infrastructure, roads, water, wastewater, and parks can be delivered sooner and at a lower cost, opening up land for new homes.

To date, the NSW Government has invested $19 million in the Low Cost Loans Initiative under rounds 1–3 to support the delivery of over $592 million worth of infrastructure and over 112,000 homes across NSW.

A further $20.9 million is being invested under round 4 into regional NSW to accelerate the delivery of new homes in our regions.

How to apply

  1. Applications open

    Applications for round 4 open in October 2025 and close on 12 December 2025.

    All 95 regional councils outside of the Greater Sydney region, including the Lower Hunter and Greater Newcastle, Central Coast, and Illawarra-Shoalhaven cities, are eligible to apply.

    Loans must be over $1 million, have a fixed interest rate and not exceed 20 years, and be used for capital works for essential infrastructure that enables housing supply and supports population growth in regional NSW.

    Supporting evidence is required.

  2. Applications assessed

    An expert panel appointed by the Department of Planning, Housing and Infrastructure (the Department) will assess applications against the published assessment criteria.

    Projects that enable the delivery of new homes by June 2029 and include funding contributions collected under Part 7 of the Environmental Planning and Assessment Act 1979 (NSW) or Section 64 of the Local Government Act 1993, will be prioritised.

  3. Successful councils announced

    Successful councils will be announced April 2026 with the initial payments forecast to be paid by 30 June 2026.

Projects

Refer to the table for a list of projects and their status.

Project Local government area Summary Status Details
Barooga Water Treatment Plant Berrigan Shire Council Upgrade works to provide for residential expansion and improve water quality beyond 2021. Completed
Bernera Road Extension Project Liverpool City Council New four lane local road linking Camden Valley Way to Edmondson Park Town Centre. Completed
Boongaree Park Shoalhaven City Council Works include the construction of recreational facilities including a skate park and sporting fields in addition to footpaths and lead-in infrastructure to support the growing population. In progress
CBD Precinct Griffith City Council Civil engineering works including water mains, stormwater drainage, roads and streetscape improvements to support multi-unit developments. Completed
Cessnock Civic Revitalisation Project Cessnock City Council Provide a larger civic and a major regional recreational area and playground, in addition to the construction of new cycleways; footpaths; upgrade of pedestrian facilities and installation of traffic signals to accommodate population growth. Completed
City Wide Growth Precinct Wagga Wagga City Council Sewer treatment works, Kooringal Road exit improvements, new sewer pump station. In progress
Collina Precinct Griffith City Council Land acquisitions for storm water drainage, detention basin works and sewer pumping station. Completed
Culcairn residential subdivision Greater Hume Shire Council Acquisition of land and provision of supply of electricity, stormwater drainage, new roads and water and sewerage infrastructures. Completed
Edward Street Subdivision Project Forbes Shire Council Subdivision of approximately 223 lot residential subdivision (includes new roads, kerb and gutter, drainage and public lighting works. Completed
Ellerton Drive Queanbeyan-Palerang Regional Council A 4.6 km extension road and bridge crossing works to reduce traffic congestion in the CBD and support growing communities along major arterial routes includes a shared off-road cycling and pedestrian pathway and space for on-road cyclists, stormwater drainage and three fauna under-passes. Completed
Griffith Affordable Housing Griffith City Council Infrastructure works including enabling water and sewer infrastructures, stormwater drainage, new local roads, kerb and gutter, footpaths, power supply upgrades and street lighting to support the development of 20 affordable housing properties and 47 new housing sites. Completed
Infrastructure Projects Wagga Wagga City Council Road works to support growing residential areas including the Amundsen Bridge crossing, Gregadoo Road corridor and intersection upgrades. In progress
Lead-in roads and cycleway Shoalhaven City Council Road works including a roundabout, kerb and gutter, cycleway, drainage and pollution control to enable the release of land in Mundamia urban release area. In progress
Lewis Crescent Berrigan Shire Council Stormwater drainage, open space irrigation works and improved pedestrian access to Berrigan town centre. Completed
Library and a childcare centre Liverpool City Council Construction of a library and a childcare centre in Liverpool CBD to support increased growth. Completed
Lloyd Growth Precinct Wagga Wagga City Council Pump station and Red Hill Road intersection upgrade. In progress
Merrylands Town Centre Stormwater Drainage Upgrade Cumberland Council Land drainage works to support multi-unit development. Completed
Moss Vale Road South Shoalhaven City Council Provision of open space. In progress
Murrumbateman Pump Station and Water Main Yass Valley Council New pump station, pumped water main and water reservoir. Completed
Northern Growth Precinct Wagga Wagga City Council Farrer Road improvements, northern sports precinct, Harris Road/Pine Gulley roundabout, Pine Gulley Road/Old Narrendera Road intersection upgrade, Estella walking path, sewer pump station capacity upgrade at Boorooma, Pine Gulley Road roundabout, Pine Gulley Road bike track, Old Narrendera Road carriageway upgrade In progress
Plumb Street Blayney Shire Council Land acquisition, new roads and footpaths, sewer reticulation, storm water and drainage, watermains and connection, electricity and telecommunications, design and consultancy for survey plans, lodgement of DA subdivision and project management. Completed
Recreation projects Wagga Wagga City Council Village community recreation facility upgrades, Wagga Beach Landscape Upgrade Stage 2 as part of the Riverside project, along with the multisport cycling complex at Pomingalarna Reserve and Harris Road shared path works. In progress
Redevelopment of Concord Oval City of Canada Bay Council Construction of road, drainage, kerb and gutter, retaining walls, paving and provision of open space works as part of broader works to serve the growing population and the general public. Completed
Redevelopment of council depot Camden Council Site works including new road pavement, community recycling centre, stormwater works, landscaping, weighbridge, retaining walls, expansion of workshop, expansion of staff and plant accommodation to support the growing population. Completed
Roads, drainage and Passive Recreation Infrastructure Shoalhaven City Council Land acquisition and construction of 2 bioretention basins, construction of a roundabout, a new collector road to enhance traffic safety, mitigate flooding issues and undertake open space embellishment works to serve the growing population in Moss Vale Road South urban release area. In progress
Saleyards Lane Mid–Western Regional Council Subdivision of land including drainage, roads, water, sewer. Completed
Southern Feeder Road Orange City Council Construction of a road and ancillary infrastructure works including footpaths, cycleways, street lighting, drainage, together with water and sewer infrastructure to provide access and support the development of adjacent residential land. Completed
Sport and recreation facility Lane Cove City Council Construction of a sport and recreation facility to support the growing population with access to a broad range of health, fitness, leisure programs. In progress
St Ives Indoor Sports Centre Ku-ring-gai Council Construction of two indoor basketball court to support the growing population with access to a sports facility. In progress
Thurgoona Link Road Albury City Council Construction of link road to provide access to residential land and assist traffic congestion from council's Thurgoona growth corridor, includes supporting land acquisition, environmental and heritage studies. In progress
Thurgoona Wirlinga Growth Precinct Albury City Council Upgraded distributor roads, drainage, storm water infrastructure, traffic and pedestrian management infrastructure and land acquisition for future recreational and community services to serve the demands of population growth. In progress
Utilities projects Wagga Wagga City Council Stormwater drainage improvements from Kincaid Street end to Flowerdale pumping station and improvements from Jubilee Oval to Red Hill Road, Ashmont sewer gravity mains upgrade, sewer pumping station works at Hammond Avenue and Lakehaven West. In progress
Vineyard Release Area Hawkesbury City Council Storm water infrastructure, roads, drainage. In progress

More information

For more information about the Low Cost Loans Initiative: