NSW Budget targets housing supply and stability
NSW Budget targets housing supply and stability
New South Wales Treasurer Daniel Moohkey’s third budget reinforces the Government’s focus on housing supply by stimulating development of new homes and encouraging developers, both local and foreign, to engage in Build-To-Rent projects.
The Government’s $1 billion Pre-Sale Finance Guarantee program should help developer commence projects earlier by addressing a key barrier in apartment construction, says BDO Indirect Tax National Leader, Fady Abi Abdallah.
“Developers often encounter challenges securing finance unless they can pre-sell a significant portion of units,” says Mr Abi Abdallah.
“We welcome this program as it should provide developers greater confidence around funding to help projects get off the ground sooner.”
Mr Abi Abdallah also believes the NSW Government’s plan to indefinitely extend land tax concessions for eligible new build-to-rent developments will provide long-term certainty for investors and developers, making build-to-rent projects more attractive and feasible.
“BDO welcomes the indefinite extension of land tax concession, a move that aligns with broader efforts to address housing affordability and supply,” he says.
“By removing the 2039 sunset clause, the Government is sending a strong signal to institutional investors and developers that New South Wales is committed to supporting long-term rental housing.
“This policy supports a more diversified housing market, benefiting families, key workers, and younger Australians seeking stability in a challenging rental environment.”
The budget also includes significant investments aimed at kick-starting business investment and growth across the state. The NSW Government will set up a new Investment Delivery Authority with $17.7 million to help fast-track major projects like tech hubs, clean energy sites, hotels, data centres, and commercial buildings. Cybersecurity is another critical area, with $125.8 million allocated to future-proof the NSW Police Force’s cyber systems.
Tax compliance also continues to be a focus point, with the NSW Government allocating additional investments to the operation of Revenue NSW’s compliance systems.
“This investment will no doubt increase state tax revenue more broadly,” says Mr Abi Abdallah.
“Taxpayers need to be more vigilant to ensure they are up to date with any changes to their tax obligations, given that Revenue NSW is likely to be more proactive and step up reviewing activity.”
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