NSW 2023 Election - Housing policies explained

With rents going through the roof and economic pressures leading to increasingly tight markets across NSW, housing is one of the most salient issues for homeowners, investors and renters alike in this month’s state election.

The NSW Liberal party, NSW Labor, and the NSW Greens have all announced policies designed to help ease the current rental crisis and housing supply and affordability issues gripping our state, and DiJones has complied them all here in one place to give you a clear, objective overview of what those policies are.

NSW Liberal party policies¹

Homeownership

First Home Buyer Choice Scheme

The NSW Liberal party have announced that they will keep the current Coalition government’s newly minted First Home Buyer Choice, which gives eligible first-time home buyers the option of choosing between upfront stamp duty and a longer-term land tax payment. This applies to homes purchased for up to $1.5 million and to vacant land (intended as the purchaser’s primary residence) up to $800,000 in value.

The land tax option sees buyers paying $400 plus 0.3% of the land value each year, capped at a set number of years.

Stamp duty concessions

The NSW Liberals will also maintain existing stamp duty concessions, which waive stamp duty altogether for first-home-buyer properties with a purchase price up to $650,000 and offer a concessional rate on first homes valued at up to $800,000.

Shared equity for essential workers and low-income households

To help key workers and low-income households own their homes, the NSW Liberal party has proposed a shared equity scheme allowing eligible buyers to purchase a home with a minimum 2 per cent deposit.

Investment in infrastructure and rezoning

The party has also committed to a third round of its Accelerated Infrastructure Fund, which provides money to local councils to support infrastructure and housing developments in high-growth areas across the state.

They’ve also promised to invest $89 million over four years into fast-tracking housing assessments and $73 million into accelerated rezoning in Sydney and regional NSW to pave the way for more housing to be built.

Rentals

Last December, the current government made it illegal for landlords and agents to solicit rent bidding, although tenants can still voluntarily offer rents over the listed price.

On the 3rd March, the Coalition committed to implementing a “reasonable grounds” policy to curb no-grounds evictions from rental properties.
The NSW Liberal party has not announced any further policies regarding rental properties in the lead-up to the 2023 state election.

NSW Labor policies^2,3

Homeownership

Scrap the First Home Buyer Choice Scheme

The NSW Labor party plans to remove the recently introduced First Home Buyer Choice Scheme.

Stamp duty reform for first-home buyers

NSW Labor has promised to abolish stamp duty for first-home buyers on properties valued up to $800,000 and to offer concessional stamp duty rates to this cohort on properties purchased for up to $1 million.

Boost social housing supply

To address the housing supply issues facing our state, NSW Labor has promised to introduce a target of 30% affordable, social and universal housing, which will be built on surplus public land close to public transport hubs where possible.

Streamline red tape

Committed to streamlining planning and development processes, the NSW Labor party has promised to merge several agencies into a single new department called Homes NSW, under the purvey of the Minister for Planning.

Rentals

Rental commissioner

If successful in the election, a NSW Labor government will appoint a rental commissioner, who will be tasked with making renting fairer and more affordable.

No secret rent bidding

The NSW Labor party has promised to curb all secret rent bidding by ensuring that any offers over the listed price made by prospective renters are disclosed to other applicants, who may then choose to make a counter-offer of their own.

Changes to the pet-request process in rentals

Under a NSW Labor government, landlords will be obliged to respond to tenant requests to keep a pet within 21 days and will have to provide a reason if the request is declined.

Portable bonds

Labor NSW has promised to introduce a bond-portability scheme, which will make it possible for renters to transfer a bond from one property to the next while still making sure that owners can access any funds they may be entitled to.