The tax changes in NSW budget designed to boost housing
A mixture of measures to fast-track new parks and schools plus extended tax breaks for developers will be part of a budget boost for the NSW build-to-rent sector, as the state plays catch-up on the housing crisis.
With NSW lagging other states in the emerging build-to-rent sector, the 50 per cent reduction in assessed land value that lowers tax bills for eligible developments, established by the previous Coalition government in 2020 with a 20-year sunset clause, will be extended indefinitely to support investor confidence.
Anaemic housing supply has plagued the NSW government since it was elected in March 2023, and Premier Chris Minns has embarked on an ambitious suite of rezoning policies to address the state's sluggish planning process.
The budget measures announced on Thursday are intended to help the government pick up the pace as NSW needs to build 378,000 homes by July 2029 under the National Housing Accord, targets hampered by inflationary pressure on construction costs and dampened consumer confidence. Australian Bureau of Statistics data released in late May showed housing approvals in NSW had fallen by 4 per cent compared to the previous 12-month period.
'You can't build new homes without roads, parks, and schools to match, and the community shouldn't have to wait for them,' Minns said in a statement.
'Whether it's new tax incentives, planning reforms or fast-tracking infrastructure, we're focused on making it faster and easier to build the homes and communities NSW needs.'
Among the measures included in the state government's budget on Tuesday, developers will be able to dedicate land for public purposes or deliver infrastructure projects, rather than paying through a housing and productivity contribution.
The government hopes this will improve the feasibility of greenfield developments, as developers will not be required to hand over significant amounts of cash before the issue of the first construction certificate or throughout the development approval process.
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News.com.au
12 hours ago
- News.com.au
Dan Andrews' ‘ghost' home legacy revealed as apartment towers stall
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Sky News AU
a day ago
- Sky News AU
NSW Premier Chris Minns staffers facing potential arrests after skipping major inquiry into Dural explosives
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SBS Australia
a day ago
- SBS Australia
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