NSW urged to seek $3.6 billion in federal infrastructure funds for 133,000 homes

The Minns government has not yet reached an agreement with the Albanese government on a $10 billion housing infrastructure program. Five other states and territories have already secured funding packages. A development body proposed specific projects that would require a state contribution of about 20 cents per dollar of federal support.

The program offers grants and concessional loans to states that match federal contributions dollar-for-dollar. The funds are intended to pay for roads, water systems, and other infrastructure needed for new housing. So far, $4.1 billion has been allocated to Queensland, Western Australia, and three other jurisdictions, leaving $5.9 billion unallocated.

Proposed projects The Urban Development Institute of Australia NSW outlined a package that includes a $2.1 billion concessional loan for the Upper Nepean Advanced Water Treatment Plant, $1.22 billion in matched grants for already identified projects, and $300 million from a state development charge.

The institute said the water treatment plant would support at least 30,000 homes in the Greater Macarthur growth area. Ten infrastructure upgrades in Sydney's south-west were listed as capable of enabling 62,000 additional homes. Other projects in the lower Hunter, Central Coast, and Illawarra-Shoalhaven regions would account for the remaining dwellings.

Current housing supply NSW completed 44,500 new dwellings in the year to the March quarter, below the previous year's total. The state has committed to building 377,000 homes by mid-2029. The institute said further delays in reaching a funding agreement risk the loss of federal support for first-home-buyer housing.