NSW development and local government bodies call for housing reforms

The Urban Development Institute of Australia (UDIA) and Local Government NSW (LGNSW) are calling on the New South Wales government to increase infrastructure funding to boost housing supply. The UDIA’s 2027 State Election Priorities align with the LGNSW ‘Unlocking Homes’ campaign, which advocates for accelerated infrastructure delivery and interest-free loans to councils to fund essential local services.

LGNSW estimates that upfront infrastructure investment could enable nearly 70,000 new homes across eight Greater Sydney local government areas, potentially generating $1.8 billion in stamp duty revenue. Mayor Darcy Byrne, President of LGNSW, stated that the alignment between the development industry and local government serves as a cue for the state parliament to act on the housing pipeline.

Additionally, UDIA NSW is urging the state government to overhaul development incentives for seniors housing. A new policy paper argues that current planning restrictions make seniors housing less competitive than conventional residential developments. The organization proposes increasing floor space ratio (FSR) and height bonuses for seniors housing to 30 per cent to accommodate a projected 40 per cent growth in the population aged over 60 over the next two decades.