The Minns Labor Government is intensifying efforts to tackle New South Wales’ housing crisis with new budget measures aimed at accelerating home delivery and accompanying infrastructure.

As part of the 2025–26 Budget, the government will indefinitely extend land tax concessions for eligible build-to-rent (BTR) developments and release draft guidelines for works-in-kind agreements—initiatives designed to stimulate investment and fast-track housing and infrastructure delivery.

Under the updated tax rules, owners of eligible BTR projects will continue to receive a 50 percent land tax reduction beyond the previous 2039 expiration, providing long-term certainty and improving the financial viability of rental housing developments and increasing density. BTR housing is known for offering longer-term lease options, stronger tenant security, and diversified housing options for families, key workers, and young people.

To complement housing supply with necessary infrastructure, the government has also published draft guidelines for works-in-kind agreements. These allow developers to contribute land or construct infrastructure—such as roads or schools—in place of monetary contributions, expediting projects that rely on essential infrastructure to proceed.

The works-in-kind framework, part of the Housing and Productivity Contribution scheme launched in 2023, ensures state infrastructure in high-growth areas—including Greater Sydney, Central Coast, Illawarra-Shoalhaven, and the Lower Hunter—keeps pace with development. The draft guidelines are open for public feedback until 17 July 2025.

These initiatives add to a broader housing strategy that includes historic rezoning reforms, a five-year housing target focused on well-serviced areas, the creation of a Housing Delivery Authority with over 53,000 homes fast-tracked, and the delivery of 30,000 homes on surplus government land, including 8,400 social housing units.

Premier Chris Minns emphasized the importance of building complete communities: “You can’t build new homes without roads, parks, and schools to match, and the community shouldn’t have to wait for them.”

Treasurer Daniel Mookhey noted the changes will give developers “the certainty they need to build more homes, faster,” while Planning Minister Paul Scully said the new guidelines provide “a clear, consistent approach” to integrating housing with vital public amenities.

 

Learn more at NSW.gov