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Developers will be allowed to build their own public infrastructure under measures to be introduced in the New South Wales Budget next week.
The State Government will also make permanent a 50 per cent land tax discount for build-to-rent developments in the Budget that is due to be handed down on Tuesday.
The land tax concession for build-to-rent developments had been set to expire in 2039.
To be eligible, buildings must include at least 50 rental homes, remain under single ownership and management, have been developed after 2020, and offer lease terms of at least three years.
The Government also plans to extend a tax cut for owners of multi-unit properties primarily used as rental accommodation.
NSW Treasurer Daniel Mookhey said the measures would give developers “the certainty they need to build more homes, faster”.
He said extending the tax incentives for build-to-rent would make it easier for developers to build and give renters more choice.
Under the proposed planning rule changes, private developers could provide land for schools or build roads themselves rather than waiting for state government delivery and contributing to project costs.
The works-in-kind framework would allow developers to opt out of paying housing and productivity contributions and instead strike agreements to provide land for public purposes or deliver infrastructure projects directly.
The measure aims to accelerate delivery of homes in areas where new infrastructure is needed to support development.
The changes apply to the Greater Sydney, Central Coast, Illawarra-Shoalhaven and Lower Hunter regions.
Premier Chris Minns said the move would accelerate housing development in high-growth areas with limited infrastructure.
“You can’t build new homes without roads, parks, and schools to match, and the community shouldn’t have to wait for them,” he said.
The Property Council of Australia welcomed the announcements.
NSW executive director Katie Stevenson said making the build-to-rent exemption permanent provided long-term certainty to investors and developers, helping enable more high-quality rental homes across NSW.
Stevenson described the works-in-kind guideline exhibition as a “keenly awaited discussion with industry”.
She said developers’ ability to deliver infrastructure would get homes delivered faster, and that large parts of Sydney exist because developers partnered with government to bring forward essential infrastructure projects.
The housing reforms come as NSW works towards its share of the Federal Government’s target to build 377,000 homes by June 2029, which the state plans to achieve through urban density increases and constructing 30,000 homes on government land.
Mookhey said next week’s Budget would include investment in water and energy infrastructure to support additional housing development.
The reforms address broader productivity concerns raised after state consultation with workers, business and investors, which revealed “everything about NSW is awesome … except the time it takes to get major projects done”, Mookhey said.
The announcements follow $156 million in new funding for road planning upgrades in North West Sydney suburbs including Blacktown, Rooty Hill, Schofields, and Marsden Park, alongside a $150-million budget commitment for Aerotropolis roadworks.
Mookhey said the Government would also “use the next Budget to take the next steps forward in building the homes we need to make sure we can house the people we cannot do without to keep our economy humming”.
