The New South Wales 2024-25 Budget, handed down by Treasurer Daniel Mookhey on 18 June, features a strong housing focus alongside key infrastructure spending. An investment of $119.4 billion over four years is committed to supporting NSW’s growing communities via the Essential Infrastructure Plan, which covers Social Housing, Roads and Transport, Health, Education, Water and Planning.

Our summary below captures the key capital investment priorities and initiatives of the 2024-25 NSW State Budget, utilising a built environment lens to present a curated collection of valuable information to guide your strategic planning and business development efforts into the coming year.

Housing

The 2024-25 NSW State Budget provides various types of funding focusing on social housing, increased housing density and key worker housing. 

Social Housing 

Addressing the urgent need for social homes, and in particular housing for women leaving domestic violence, the budget includes a $6.6 billion investment in social housing, which may be the largest state-based social housing investment in NSW’s history. This investment will include:

• $5.1 billion over four years to build 6,200 new social housing dwellings and replace 2,200 existing homes in a state of disrepair, with the intention for half of the new homes to support women at risk of or leaving domestic and family violence. 

• $1.0 billion for the critical maintenance of existing social homes, including over $200 million for Aboriginal housing.

Essential worker housing

Acknowledging critical housing unaffordability impacting essential workers such as nurses, teachers, police officers, firefighters and paramedics, the budget includes a $650.1 million injection of funding to build essential worker housing. This investment includes a $450 million investment in a Key Worker Build-to-Rent Program which will allow Landcom to deliver over 400 homes for essential workers across Sydney, plus $200.1 million to implement a key Health Worker Accommodation Program which will address the current lack of housing supply in rural and regional areas.

Targeted Housing Development

Recognising that despite heightened demand, the rate of supply of new homes in NSW continues to decline, the government has developed an action plan for housing reform which focuses on rebalancing housing growth via the following key measures:

Building Homes for NSW

The government has committed to delivering 21,000 new market and affordable homes by releasing surplus government land. The homes will be delivered by Homes NSW, Landcom, and in partnership with the private sector. An ongoing audit of government land to identify appropriate surplus sites has revealed 44 sites suitable for housing development, although the locations of these are yet to be revealed.

More homes near better infrastructure

Investment of $520.0 million for new infrastructure to further support the Transport Oriented Development Program, launched in December 2023 and set to rezone areas around eight priority transport hubs to develop more housing. In addition, the budget includes an investment of $246.7 million for enabling infrastructure, conservation activities and land acquisitions to fast-track the delivery of more housing in Western Sydney and across the regions.

Housing that meets the needs of current and future generations

The government will invest $11.4 million to develop a new low/mid-rise Housing ‘Pattern Book’, to facilitate the development of more high-quality, sustainable housing that is responsive to its local context. The application of the Pattern Book is set to be incentivised by an accelerated approval pathway. In addition to this, the budget includes a $1 million investment to investigate a guarantee scheme to enable residential developers to secure funding to accelerate the completion of residential housing.

The government will hold an international design competition inviting Australian and international architects to design a Sydney terrace and mid-rise apartment for the 21st century. The pattern book will feature the winning design or designs that demonstrate best practices. Details of the competition will be announced in mid 2024.

Faster and more streamlined assessments

An investment of a further $555.5 million to improve the efficiency of the state’s planning systems. This includes $253.7 million over four years to enhance the efficiency of the development application assessment process. It also includes the establishment of a Faster Assessments Council Incentives and Grants program, which will provide $200 million in grants to Councils to maintain local streets and deliver more green spaces such as parks and community sporting facilities.

Education & Community

With a core focus on delivering critical school infrastructure in rapidly growing parts of Western Sydney and regional NSW, the budget includes $8.9 billion in funding to build new schools and upgrade existing campuses. $3.6 billion of this investment is committed to delivering new and upgrading established primary and high schools in Western Sydney, including a new public school and high school at Box Hill. In addition, the budget has committed $1.4 billion to build new and upgraded schools in regional areas, including a new public school and high school for Huntlee.

In an effort to lift the standard of public school facilities across both metropolitan and regional NSW, an investment of $1.08 billion will enable schools to undertake key capital maintenance works, upgrades to enhance safety and disability access, and small upgrades and refurbishment works.

Early childhood education will also benefit from an investment of $769 million to develop 100 new public preschools by 2027. An additional commitment of $60 million will fund the development of new and upgraded preschools at non-government schools, and an investment of $20 million in capital grants will facilitate capacity increases at community preschools for children in regions with immediate need.

In regards to community facilities, the budget includes a commitment of $88.8 million to the NSW Office of Sport to enable critical planning for the relocation of the NSW Institute of Sport ahead of the Olympic Games, to deliver women’s sports initiatives and to support grassroots sports in new communities. In support of key reforms to enhance Sydney’s night-time economy, the budget includes $8.8 million for further critical upgrades to key cultural institutions such as the Sydney Opera House, State Library of NSW, Sydney Observatory, Powerhouse and Australian Museum.

Health

Over the next 4 years, the NSW budget has committed a $13.4 billion capital investment in health infrastructure, supporting the planning and delivery of new and upgraded hospital projects. Key projects will include:

• $1.3 billion to rebuild the Bankstown Hospital on a new site

• $1.0 billion for the ongoing redevelopment of the Nepean Hospital and Integrated Ambulatory Services 

• $940.0 million for the redevelopment of the Royal Prince Alfred Hospital 

• $835.0 million for expansion and redevelopment of John Hunter Health and Innovation Precinct

• $781.9 million for the New Shellharbour Hospital and Integrated Services project

• $780.0 million for Liverpool Health and Academic Precinct, including an integrated cancer centre, expansion of the hospital’s emergency department, neonatal intensive care, maternity and children’s services, and ambulatory and outpatient care

• $700.0 million for the expansion of Rouse Hill Hospital

• $669.8 million for the State-wide Mental Health Infrastructure Program

• $658.0 million for the Stage 1 redevelopment of the Sydney Children’s Hospital in Randwick, to establish Australia’s first Children’s Comprehensive Cancer Centre

• $619.0 million for the Stage 2 redevelopment of the Children’s Hospital at Westmead 

• $395.3 million to deliver ongoing hospital redevelopments at Eurobodalla, Ryde, Temora, Liverpool, Integrated Mental Health Complex at Westmead, Moree, Nepean, Cessnock and Shellharbour Hospital. 

• $265 million for the upgrade of mechanical and clinical infrastructure at Port Macquarie Hospital

• $250 million for a Critical Asset Maintenance Program 

• $70.1 million to expand ED short-stay units to achieve improved patient flows and reduced ED wait times

Disaster Relief and Recovery

Recognising the devastating impacts of the 2021 and 2022 floods upon the Northern Rivers and Central West regions of the state, the budget includes an investment of $5.7 billion, inclusive of co-contributions from the federal government, to fund natural disaster support and recovery programs that will assist with recovery and building resilience. This investment includes:

• $3.3 billion repair the damage to local and state roads from major flood events; 

• $630 million for the delivery of new and safe housing in the Northern Rivers and Central West regions, including $525 million to support voluntary buy-backs, raisings, repairs and retrofits through the Resilient Homes Program;

• $303.5 million for the repair/rebuilding of water, sewerage, and community infrastructure, with the aim to improve these for enhanced resilience for future disasters; and

• $15.4 million for the development of a new 24-hour fire station at Badgerys Creek, prior to the opening of Western Sydney Airport

Transport and Infrastructure

Transport and road infrastructure spending will be focused on keeping communities connected, supporting new housing developments and connecting people to jobs and opportunities. Key investments include:

• $2.1 billion for the delivery of Stage 2 of the Parramatta Light Rail, which will link the Parramatta CBD with Sydney Olympic Park, via Camellia, Rydalmere, Ermington, Melrose Park and Wentworth Point, with 14 new stops and three new river crossings

• $13.4 billion for the continuation of Sydney Metro West, $5.5 billion for the Western Sydney Airport Metro, and $1.2 billion for Sydney Metro City and Southwest

• $4.2 billion to upgrade the Western Sydney Harbour Tunnel

• $1.1 billion for the Connecting Sydney Road project to upgrade Sydney’s road network

• $1.1 billion continued investment in the government’s Road Safety Action Plan

• $398.5 million for the Urban Roads Fund to continue to improve capacity on Sydney’s key road corridors

• $125.1 million continued investment in the Regional Roads Fund to build new roads in rural and regional areas

• $1.0 billion for Aerotropolis roads associated with the new Western Sydney International Airport

Sources:   NSW Budget 2024-25. Overview: Our plan for New South Wales, NSW Budget 2024-25. Budget Paper No.03: Infrastructure Statement, ABC News The winners and losers in the 2024 New South Wales budget, The Guardian NSW budget 2024: the biggest winners and losers, Government News NSW Budget boosts capacity of OLG, Hospital and Healthcare NSW Budget delivers $35.1bn in health funding, Property Council of Australia 2024-25 NSW Budget Analysis, NSW Budget: Building homes for New South Wales, NSW Budget: Rebuilding public education, NSW Government: Pattern book for housing design