The Minns Labour Government is introducing new measures in the 2025/26 Budget to address the state’s housing challenges while ensuring that critical infrastructure is being delivered.
These initiatives aim to deliver more homes alongside the essential services and infrastructure communities need to thrive.
A cornerstone of the Budget is the extension of tax concessions for Build to Rent developments; a move designed to attract long-term investment in rental housing supply.
Under the new measures, owners of eligible new Build to Rent schemes can access a 50% reduction in assessed land value indefinitely. This replaces the former Government’s policy, which set an end date for the concession in 2039.
“You can’t build new homes without roads, parks, and schools to match, and the community shouldn’t have to wait for them. Whether it’s new tax incentives, planning reforms or fast-tracking infrastructure, we’re focused on making it faster and easier to build the homes and communities NSW needs.”
Chris Minns, Premier, NSW
This policy shift is expected to provide greater certainty for investors, improving the feasibility of Build to Rent and unlocking a steady supply of secure rental housing across New South Wales (NSW).
Build to Rent housing offers longer-term lease options, increased security for tenants, and greater housing choice, particularly for families, key workers and young people.
The Minns Labour Government is also releasing draft guidelines to accelerate the delivery of housing and associated infrastructure. These guidelines facilitate works-in-kind agreements, allowing developers to contribute land or deliver infrastructure projects directly, rather than providing monetary contributions.
“These measures will give industry the certainty they need to build more homes, faster. We are making sure we build the homes we need, along with the essential infrastructure we need to go with them.
“Extending the tax incentives for Build to Rent will make it easier for developers to build and give renters more choice.”
Daniel Mookhey, Treasurer, NSW
This approach enables faster commencement of housing projects, particularly where critical infrastructure is needed to unlock new developments.
Introduced in 2023, the Housing and Productivity Contribution scheme replaced the previous ad hoc State Infrastructure Contributions, providing a clearer framework for funding essential state infrastructure in high-growth areas. The proposed works-in-kind guidelines are currently open for public feedback until 17 July 2025.
In addition to these measures, the Minns Labour Government is advancing several other housing initiatives, including the most extensive rezoning efforts in the state’s history, new five-year housing targets to align development with existing infrastructure, and the establishment of the Housing Delivery Authority.
“Local infrastructure was an afterthought with the former Liberal-National Government. We’re doing things differently, making sure homes are delivered alongside parks, roads and schools.
“The Minns Government is delivering more homes and better choices for home buyers and renters across the state. Works-in-kind is an important part of the mix in our provision of infrastructure. The Works-in-kind Guideline provides a clear, consistent approach to when and how it can be used.”
Paul Scully, Minister, Planning and Public Spaces
The Housing Delivery Authority has already facilitated the development of over 53,000 homes classified as State Significant.
Surplus Government land is also being leveraged to deliver 30,000 new homes, including 8,400 social housing units – the largest housing investment in NSW’s history.
With these steps, the Minns Labour Government is reaffirming its commitment to addressing the state’s housing needs and supporting the development of vibrant, well-connected communities.
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