- Has labelled the government's attempt to address housing supply concerns as "modest"
- Small funding has been allocated for 20,000 rezonings
- 42,000 new homes are needed annually to keep up with demand
While acknowledging broader support for the NSW Budget 21-22, the NSW Executive Director of the Property Council of Australia (PCA), Jane Fitzgerald, has criticised the budget for failing to adequately address issues such as housing supply and affordability, labelling the government’s attempts as “modest”.
“While there is a small amount of funding for 20,000 rezonings, housing supply is already at a critical low,” Ms Fitzgerald said.
Her criticism comes as the recent Intergenerational Report remarks that 42,000 new homes are needed annually to handle future demand.
“This is the next big challenge the Premier and Treasurer need to tackle,” she added.
Infrastructure contribution reform is another key initiative within the budget, which Ms Fitzgerald argues will boost growth and speed up housing supply – if delivered effectively.
“Infrastructure contributions have been a mess in NSW for way too long,” Ms Fitzgerald said.
“The legislation unveiled today is an important next step in driving the reform plan developed over the past year.
“While there is still a long way to go, NSW is finally on the path to a more transparent, consistent, fair and affordable contributions system.”
Jane Fitzgerald, Property Council NSW Executive Director
More specifically, the Property Council supports $179.9 million towards the NSW Planning Reform Action Plan – which seeks to improve the transparency of NSW’s planning system.
Additionally, $139 million has been allocated to expand the Accelerated Infrastructure Fund (AUF) with $1.15 billion towards the new Bradfield City Centre.
$50 million will go towards the enticement of 500,000 office workers back to the Sydney CBD through the use of $100 vouchers.
30 new building inspectors will also be hired – a doubling from the current 30 – to the tune of $4.9 million. Ms Fitzgerald said this will restore confidence in the unit market.
Ms Fitzgerald concluded her remarks but once again highlighting the need to address stamp duty – which she labels as an “inefficient tax”.
“It will take complex fiscal gymnastics to remove this tax, achieve the positive benefits its removal would bring and ensure continued strong revenue receipts,” she said.
“The Property Council has played an engaged, positive and active role in the debate to date – and will continue to do in the next phase of the consultation.
“This is a once in a lifetime opportunity for state tax reform and the Treasurer is to be applauded for not leaving it in the too hard basket even though the path to reform is a steep one.”