Local councils across NSW will be able to access a $200m incentive pool if they reach their housing targets, in a new announcement set to be revealed alongside highly-anticipated revised targets.
NSW Premier Chris Minns is expected to unveil the long-awaited figures in Wednesday’s address to the Committee for Economic Development of Australia (CEDA).
He will also use the speech to announce the $200m Faster Assessments Council Incentives and Grants program, aimed at speeding up housing approvals and create infil housing in already developed areas.
Councils who beat their targets can access grants to help fund local infrastructure like sporting facilities, green spaces, hospitals and the maintenance of local streets, and footpaths.
“In other words, meeting and beating the housing targets will automatically translate to
greater funding support,” Mr Minns will say.
“There are councils out there that want to embrace this challenge; that want to welcome
more families into their community.”
The progress of NSW’s 43 local councils will also be measured in the Council League Table, which will be published imminently.
Under the National Housing Accord, NSW is expected to deliver 375,000 homes in the five years from mid-2024, however Mr Minns has previously said there’s “no way” NSW will build 75,000 homes in the first year.
On Wednesday, Mr Minns will also say he believes the previous targets have failed after development was focused in Western Sydney, creating urban sprawl in areas without infrastructure.
The government has flagged development will be prioritised in Transport Oriented Development (TOD), which will rezone areas close to transport hubs and town centres to allow for taller and more dense buildings.
Mr Minns will say the new incentives will give local councils extra support.
“We’ve asked local councils to pick up the slack, to maintain the roads, to provide the
parking, to make sure services are there for entire new communities.
“But they haven’t been given the help they need to do it; to keep up with the immense
change happening around them.”
Councils from the Greater Sydney, Illawarra-Shoalhaven, Lower Hunter and Central Coast regions will be allowed to access the new incentive alongside existing developer Housing and Productivity Contribution.
The levy, which is expected to collect $700m annually, collects funds from developers to contribute to community infrastructure projects.