NSW pledges to defer housing infrastructure fees until occupancy in bid to speed up building

The New South Wales Labor government led by Premier Chris Minns announced a housing reform pledge on 6 November: if re-elected at the next state election, it will defer local infrastructure contributions for housing developments from the construction certificate stage, where they are currently paid, until the occupation certificate stage, easing developers' upfront costs and speeding up home building.

Councils hold A$4.6 billion in contributions

According to the state government, councils across NSW currently hold more than A$4.6 billion in collected infrastructure contributions, of which more than A$900 million was collected under superseded infrastructure plans that have since been repealed. Under the reform, the planning minister would issue guidelines allowing councils to spend the money on roads, parks and community facilities. The government also said it would work with councils to manage the impact of the changed payment timing and, if needed, extend financing facilities so infrastructure projects keep flowing.

The latest Australian Bureau of Statistics figures show almost 50,000 homes were completed in NSW in 2025–26, up 16 per cent on the previous year, compared with a 2.8 per cent increase nationally.

Industry welcomes the pledge; councils push back

The Property Council of Australia and the Housing Industry Association (HIA) welcomed the commitment. Property Council NSW executive director Katie Stevenson said deferring contributions would directly improve project feasibility and help approved projects move from approval to construction and from construction to completion. HIA NSW executive director Brad Armitage said infrastructure contributions can exceed A$100,000 per home in some areas, a heavy upfront cost developers must pay before any work begins.

But Local Government NSW president and Inner West mayor Darcy Byrne criticised the plan, saying deferring payment would create a “giant loophole for dodgy developers to mysteriously go belly up at the time they should be paying”, and that the government had not spoken to a single council about it. Urban Taskforce chief executive Tom Forrest said unlocking A$900 million immediately, and A$4.6 billion in total, would take time but would “underpin a massive boost for housing supply”.

Small-business approvals to be eased too

The reforms would also ease planning approvals for small businesses: expanding exempt and complying development pathways to reduce full applications for minor renovations, internal fit-outs, changes of use, trading hours and signage; introducing page limits on development application reports; and standardising approval conditions. The Business Council of Australia welcomed the package, saying it would support investment and housing construction.

Sources: NSW Government, Property Council of Australia, The Urban Developer, Inside Small Business.