The State Budget recognises the critical link between the property sector and economic vitality of NSW, according to the Property Council of Australia.
It includes investments to underpin urban release areas, large- and small-scale infrastructure, planning reform and incentives to spur new housing supply.
The creation of a new agency Urbangrowth NSW – blending Landcom and the Sydney Metropolitan Development Authority – has the potential to turbocharge new development sites across NSW.
“The Budget is defined by difficult choices but initiatives that fuel growth in the property and housing markets will produce an economic dividend for NSW,” NSW Executive Director, Glenn Byres, said today.
“The Budget has a smart mix of solutions to accelerate substantial new release areas, invest in infrastructure and pave the way for more efficient project assessments.
“We have long championed the case for a dedicated agency with a powerful mandate to foster major urban renewal sites.
“Urbangrowth NSW will need to play a strong hand in leading site identification, master planning and infrastructure coordination on urban renewal sites.
“When matched with the funding to unlock infill development and infrastructure blockages on new release areas, it has potential to serve as a gamechanger.
“The funds allocated to seed and crank up major infrastructure projects are also essential to keep pace with Sydney’s growth and close the backlog.
“NSW is currently running at the back of the pack on housing supply, so these initiatives will need to be backed by swift and robust implementation.
“It also adds to the case for continuing to gear grants to first-time homebuyers towards the supply of new homes, which this Budget does.
“We will need to test however whether the trimmed incentive for investors in new properties will have an effect on the constrained rental market.”
The promised review of funding for fire and emergency services should be used to deliver a fairer and simpler system.
“We support moving away from a system with a limited pool of contributors to one which has a broader and more comprehensive base,” Mr Byres said.
“Any new levy should include both mobile and immobile property, recognise risk factors and be charged against unimproved values.
“We hope the switch reveals an appetite for further tax reform, given the property sector pays over one-third of all state taxes.
“It is unfortunate however that abolition of inefficient taxes under the Intergovernmental Agreement has been deferred by one year, including a range of transaction duties.”
Media contact: Glenn Byres, NSW Executive Director, 0419 695 435.