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 policies2,3
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.
NSW Greens policies4,5
Homeownership
Land tax reform
Owner-occupiers living in high-end residential properties (with an unimproved value of over $10 million or an improved value of over $20 million) will be subject to a new 4% land tax under the NSW Greens, and the party is also committed to expanding existing land taxes payable on investment properties from 2% to 5%.
The party has also promised to abolish land-tax concessions given to developers whose projects do not include at least 30% ongoing social and affordable housing. This requirement increases to 100% if the development is on public land.
Affordable housing
The NSW Greens would introduce legislation requiring developers to ensure that 30% of private housing developments were affordable, long-term homes and making it a requirement that 10% of all dwellings in the state must be public, not-for-profit social housing.
Banned sales of public housing or land
The sale of any public housing or public land that could be used to create more public housing would be banned under the NSW Greens.
Empty-home levy
The NSW Greens propose that homes left empty for more than six months incur a 5% levy, which would be put towards funding public, social, affordable housing.
Rentals
Rental freeze and rental caps
The NSW Greens have promised to impose a two-year freeze and cap spiralling rents, establishing an independent body to regulate rental increases. They also plan to expand the current hardship provisions to provide renters in need with immediate financial relief.
End to no-grounds evictions
The party is also committed to banning no-grounds evictions.
Building new homes
The NSW Greens aim to build one million new publicly-owned homes to address the supply issues facing our state.
Improved minimum standards for rental properties
If successful, the NSW Greens have promised to improve the minimum required standards for rental properties in terms of insulation, heating, mould and damp, energy efficiency and internet access.
Tenant rights
The NSW Greens also propose strengthening tenants’ rights, enabling long-term leases, allowing pets in rentals, regulating tenancy databases and lease application processes to safeguard privacy, and penalizing landlords who don’t meet their responsibilities.
No rent bidding
Under the NSW Greens, rent bidding would be banned.
Summing up
Housing is certainly a major issue coming up to the 2023 NSW state election. Having a clear, objective picture of what each party hopes to achieve in terms of affordability, taxes and supply for homeowners and renters is essential.
We hope this short summary of the main policies of the three major parties has been informative and helpful.
Sources
1. https://nswliberal.org.au/ourplanfornsw/5-affordable-housing
2. https://www.freshstartplan.com.au/
3. https://www.chrisminns.com.au/housingsupply
4. https://greens.org.au/nsw/makehousingaffordable2023?gclid=CjwKCAiA_6yfBhBNEiwAkmXy58rz_9WvRIKDqklB6P3nZIpI0_CmwbMs8mUFJsCV4dQk14fcCvHiAxoCWBcQAvD_BwE
5. https://greens.org.au/nsw/freezeandcutrents2023
Other buying, selling and investing articles and resources
Guide to property investment success in NSW
Guide to selling my house or apartment in NSW
Selling a house or apartment in NSW eBook
Buying a house or apartment in NSW eBook
