25 June 2026
Planning and housing
The State’s ongoing housing challenge underpins various components of the 2026-27 NSW Budget, with a continuation of planning reforms and initiatives to increase supply, improve access to safe and quality housing, streamline approvals and support new construction approaches.
Key items of note:
Building Commission and support for modern methods of construction (MMC)
- $32.3 million for the Building Commission to improve housing productivity through a new buildings approvals system in the NSW Planning Portal, creating a MMC Regulatory Framework to decrease the cost of construction, pilot of an enhanced dispute resolution process and the use of AI technology to improve and streamline licensing.
- The Government will open an expression of interest to establish a MMC manufacturing facility which will scale prefabrication, automate processes, reduce build costs, accelerate delivery of high-quality homes and improve sustainability.
- LGNSW supports the MMC initiative - with many approved homes across NSW yet to proceed to construction, MMC has the potential to help move projects from approval to delivery more quickly.
- Funding for the Development Coordination Authority (DCA) to operate as a one-stop-shop from 1 July 2026 – the DCA is intended to coordinate and streamline state agency inputs on development applications and planning proposals.
- Expansion of the Pre-Sale Finance Guarantee program to target registered, not-for-profit community housing providers and smaller residential developments, particularly in regional areas.
- Open Space Projects in Transport Oriented Development (TOD) accelerated precincts - $212.5 million over four years
Investment targeted at faster approvals and decisions for housing delivery including:
- $24.9 million towards planning system improvements that support housing delivery. (These funds may be directed towards supporting implementation of the planning reforms package, although this detail is unclear. LGNSW looks forward to receiving more detail.)
- $8.7 million to maintain Land and Environment Court (LEC) capacity
- $14.0 million in the NSW Digital Planning System
- BASIX system changes to provide faster housing sustainability assessments - $4.9 million over four years
- Surcharge purchaser duty relief to support investment in retirement villages and build-to rent properties.
Social and community housing
- Regional Housing Program – $70.0 million interest-free debt financing and $20.5 million from NSW LAHC’s own sources to accelerate the delivery of social, affordable and private homes in regional New South Wales – $90.4 million over four years
- 8,400 new and replacement social homes to be delivered through Building Homes for NSW Program by 2031
- Continuing construction, upgrades and maintenance of social and community housing for First Nations communities through the Aboriginal Housing Office - $69.6 million over four years
- Aboriginal Housing Office (AHO) Capital maintenance and upgrades of AHO’s existing social housing stock, including roof replacements, recladding and window replacements, backlog maintenance on dwellings in critical need of repair - $65.9 million over four years.