The Albanese Government is funding reforms to fast‑track approvals and get businesses up and running as quickly as possible in New South Wales.
This marks a key milestone in the Productivity Package being rolled out as part of the upcoming Budget.
The Productivity Package is about boosting productivity across the economy, lifting the speed limit on growth, and driving innovation and job creation.
We know that outdated planning and zoning laws are holding back businesses and growth.
The state‑level reforms that the Albanese Government will fund are focused on unleashing that potential – boosting competition, removing barriers to development, and getting more major projects up and running faster.
In line with the reform priorities agreed in 2024, the Commonwealth will provide $72.5 million to the New South Wales Government after the implementation of key reforms.
$67.5 million in federal funding is for implementing changes to their commercial planning and zoning rules, including:
- Speeding up approval processes by increasing the number of developments going through the fast‑track pathway from 45 per cent to 75 per cent.
- Modernising zoning definitions and laws to allow more businesses to operate without lengthy development approvals – including broadening the number of businesses that can operate in employment zones without needing a permit and expanding the range of businesses that can operate in mixed‑use zones.
- Expanding operating hours in industrial and other employment zones.
- Establishing dedicated authorities to serve as a single point of contact for planning issues and streamlining investment in major proposals.
By removing bottlenecks and advancing projects into the construction phase, NSW reforms are also expected to help progress towards the Housing Accord target of 377,000 new homes in NSW by 2029.
We know these targets are ambitious and are facing headwinds as a result of the conflict in the Middle East, which is why this funding is so important.
NSW will also receive an additional $5 million for implementing the National Competition Principles, agreed by all states and territories in 2024, which will help achieve a nationally consistent approach to competition policy.
The $72.5 million payment is part of the $900 million National Productivity Fund, established to incentivise states and territories to adopt reforms that will boost productivity and competition.
Queensland and Tasmania have also agreed to implement the Principles and will receive $5 million from the National Productivity Fund, and Tasmania will receive an additional $1 million to remove legislative barriers that hamper modern methods of construction.
Together with agreements announced with South Australia, Northern Territory, and the ACT, this means over $100 million has now been allocated from the Fund towards making out national economy stronger, more productive and more competitive.
By working together, the Commonwealth, states and territories can deliver nationwide economic outcomes that aren’t possible if we work alone.
Labor’s Productivity Package will be at the heart of our May Budget as part of our focus on tackling inflation and navigating this global economic uncertainty.