Friday, 08 May 2026

In this Edition...

1. Federal Budget cannot afford to ignore the housing supply crisis

2. NSW Building Bill marks the beginning of the end for ambulance chasing lawyers – a win for Urban Taskforce

3. Housing approvals up – but storm clouds ahead for housing supply

... and much, much more.

4. High Speed Train will go the way of Inland Rail
5. Planning Minister knocks 7 HDA projects off the SSD list
6. Quote of the week
7. Is the “Ghost of Fairfax Past” haunting the corridors of the SMH?
8. Council watch
    - Mosman Part I – have your (limited) say on housing
    - Mosman Part II - Development Control Plan changes to further thwart LMR
    - City of Sydney schedule affordable housing taxpublic forum during business             hours
9. Blacktown Council’s right of reply – "we’re not all Smaugs!"
10. Planning Portal update
11. Members in the news

1. Federal Budget cannot afford to ignore the housing supply crisis

The ongoing “will they or won’t they” cat-and-mouse game around capital gains tax and negative gearing changes being played by the Prime Minister and the Treasurer is detracting from the big ticket fiscal reforms needed to address productivity. Perhaps this is deliberate.

In its rush to deliver “intergenerational equity” through tax virtue signalling half-arsed reform, the Federal Govenrment is taking a big risk that might end up increasing the tax burden on new housing supply, rather than freeing up housing.

We hope that this does not happen, and that the CGT concession on new property either remains at 50%, or better, goes up.  

More important though are the matters not being floated like thought balloons, such as reform and modernisation of the GST, meaningful reductions in company tax and income tax, and assistance to the states to support a transition away from stamp duty and payroll tax.

While there has been progress from the states on planning reforms (more to be done), the feasibility factors driving the housing supply crisis have got much worse with 3 rises in interest rates so far this calendar year and more predicted, as well as the obvious impact of the war in the Middle East.

Reducing incentives for investment in new housing supply during a housing supply and affordability crisis would be madness. If the current CGT and negative gearing regimes are to be changed, it must be on established housing only (see Recommendation 6 below).

The Government ignores this at its peril.

Urban Taskforce’s pre-Budget submission to the Federal Government made several recommendations:

All will finally be revealed on Tuesday night and we hope that our worst fears are not realised.

2. NSW Building Bill marks the beginning of the end for ambulance chasing lawyers – a win for Urban Taskforce

Urban Taskforce’s campaign to introduce compulsory mediation when it comes to building defects has borne fruit,  with the introduction of the Minns Government’s Building (Approvals and Practitioners) Bill 2026.

The Bill has come about following extensive work and the collective efforts of Planning Minister Paul Scully, Housing Minister Rose Jackson and Building Minister Anoulack Chanthivong, supported throughout by both DPHI and the NSW Building Commission.

Minister Chanthivong deserves particular praise for ensuring a legislative framework is in place to end the scourge of ambulance chasing lawyers and damage that they are doing in the complex environment of building defects.

The Bill gives the Government a head of power under the RAB Act that will allow it to establish a regulatory framework for a building defect dispute mediation/  resolution service through the Building Commission.

Building defects should be fixed, not farmed out as business opportunities for unscrupulous law firms.  An entire industry of ambulance chasing lawyers has emerged acting primarily to stop defect rectification and encouraging owners’ corporations to take matters to court. The only winners here are the unscrupulous law firms.

Our take from 12 December ULN last year- the Government has finally listened!!

In November 2025, the cross party Legislative Council Public Accountability and Works Committee unanimously recommended (recommendation no 4) that this change be incorporated into building legislation. The Government appears to be progressing that recommendation.

It is helpful to be able to point to a proven example in the Queensland Government’s building defect dispute mediation model. This model was introduced by the former Labor Government in Queensland and has been embraced by the LNP Crisafulli Government.

The Bill, if passed, will allow for regulations to establish the mediation framework. The Building Commission has already stated that it will work with the Urban Taskforce to ensure that the mediation process for building disputes over residential apartment buildings is fit-for-purpose.

The suite of reforms contained within the Bill is the next stage in the Government’s strategy to speed up housing delivery. In addition to the dispute mediation and resolution service, it provides for:

• streamlining the building approval process by integrating design and building declarations into the building approval process, reducing red tape and administrative burden, and creating a new building approvals framework that provides clearer obligations for the building industry and approval authorities;
• providing clear and simple processes for approval and completion of building work and permitting staged approvals to enable faster commencement of building work and variations approved by approval authorities significantly reducing downtime during construction;
• modernising and removing significant administrative burden for approvals by leveraging digital systems and replacing outdated paper-based processes; and
• supporting uptake of modern and more efficient methods of construction, aiming at speeding up approvals and engendering greater confidence in the community about the opportunities unleashed by technology.

While championing modern methods of construction is critical – more reform is needed, including lifting the archaic ban on land lease communities within the Sydney basin.

Combined with MMC pathways, this could be a real game changer – offering a low cost construction path combined with scale in Australia’s most expensive property market.

3. Housing approvals up – but storm clouds ahead for housing supply

ABS Housing approvals data for the month of March 2026 showed a small rise in the number of new dwellings approved in the month of March in NSW, and national annual approval figures edging closer to the 200,000-mark.

NSW saw 4,445 approvals in March 2026, continuing its positive upward trajectory – evidence that the planning reforms are starting to bite.

The Daily Telegraph used our analysis on the national figures:

While approvals are on the up, we have a long way to go to hit the Accord targets - in NSW and across the nation.

The storm clouds of war continue to brew, and, in the wake of two interest rate rises (and more to come?), the inflationary shock is starting to flow through to the property sector, fuelling the very real fear that development feasibility is reaching a crisis point.

The Federal Government needs to face up to these challenges, not hide behind these exogenous shocks as cover for why the nation is still falling behind key housing supply metrics. (see story 1)

4. High Speed Train will go the way of Inland Rail

The CEO of Urban Taskforce told 7 News that he questions the economic underpinnings of a $90 billion high speed rail link joining Newcastle with Sydney, particularly given that some of the arguments behind the project boiled down to “regional development opportunities”. And that’s if you have any faith that the cost of delivery won’t quadruple - or worse.

Economics, underpinned by population density, lies at the heart of the project and whether it should proceed. Currently it simply doesn’t stack up.  

Tom was interviewed by Adelaide’s FIVEaa radio, where he questioned the infrastructure priorities of the Albanese Government:

Our doubts reflect the oft used analogy: “this could become a script for the ABC’s comedy Utopia”, particularly as the Government's plans coincided with the news of the demise of another politically-backed mega project, the Inland Rail linking Melbourne with Brisbane, which has been shelved indefinitely.

The freight trains will get to Parkes, but not beyond. One of the key reasons was the project - relatively simple when compared with high speed rail along the eastern seaboard – had seen cost blowouts and creeping completion dates.
It is now estimated to cost $45 billion to complete – 4 times the original estimate!

Canberra has already spent close to $15 billion of the Inland Rail. Imagine if that money had been spent on housing and job enabling infrastructure in high growth areas of Australia like Western Sydney over the last 10 years?

Even if it gets up under current leadership, the Newcastle to Sydney high speed rail project will go the same way as inland rail.

5. Planning Minister knocks 7 HDA projects off the SSD list

An “instrument of revocation” signed by the Planning Minister Paul Scully was published this week, removing 7 housing projects that had been declared State Significant.

The reason behind the revocation of the SSD declaration was that the proponents had failed to meet the 9 month timeframe, or the proponent decided not to proceed.

Urban Taskforce has written to the Government seeking more transparency from the HDA into their decision making process. We are expecting the outcomes of a review into the practices and processes of the HDA imminently. We note that those declarations were made within the first 6 months of the new pathway. The Government needs to be ever vigilant lest confidence in the HDA is undermined.

We would be concerned if there were revocations where proponents are struggling to complete their SEARS and/or their EIS for legitimate reasons.

The NSW Government needs to tread cautiously here, lest they throw the HDA baby out with the bathwater.

6. Quote of the week

Shadow Minister for Planning Chris Rath MLC hit the nail on the head in Parliament this week:

7. Is the “Ghost of Fairfax Past” haunting the corridors of the SMH?

But the SMH headline “Hundreds of inner Sydney homes to be bulldozed for 3,300 units” appears to exhibit some of the old habits of the SMH when it came a growing metropolis. Arrhh – the old days when the likes of Elizabeth Farrelly used to regularly regale readers with the evils of building apartments in the old established suburbs of Sydney. Relying on fringe commentary from REDWATCH and the Greens raises suspicions of an SMH regress.

Journalist Cindy Yin did note the Government’s worthy justification for the redevelopment and referred to both the Housing Minister's and the Premier’s defence of the project. 

With the growth of resentment towards selfish NIMBY boomers in recent years, as reflected by the effective voice of Sydney YIMBY, the SMH needs to be careful lest it become a heritage item itself!

In the lead up to the NSW election, which way will the august SMH go when it comes to the pressing issues that surround the lack of housing supply across NSW??

The proposal is currently on public exhibition and members of the community are encouraged to provide feedback until Tuesday, 2 June 2026.

8. Council watch

Mosman Part I – have your (limited) say on housing  

We’ve had a quick look at Mosman Council’s “survey” on their Masterplan and surprise-surprise: a fix is in!  

When it comes to the plans, the survey asks the respondent to choose between the two options, with no ability to opt for the State Government LMR policy!

Where’s Option 3 – the NSW Government’s LMR policy?

The only look-in the LMR policy gets is as a “Did you know?” pop out in a strange shade of pink:

And talk about push polling – look at the survey’s question on the principles that should underly the Masterplan:

What about the economic development of the state? Productivity?? Well located housing??? A future home for our children????

Ironically, the people of Mosman have historically happily benefitted from economic development. 

DPHI should be asking even more questions of Mosman Council's consultation on its Masterplan, including why it would not include the Government’s preferred approach as an option. Imagine if the State Government did such a thing? The Mosmanites would be crying foul play!

The survey is not worth the virtual paper it is written on.

Mosman Part II - Development Control Plan changes to further thwart LMR

At the same time, Mosman Council resolved on 5 May to place on exhibition an amendment to the Mosman Residential Development Control Plan in response to the LMR.

As the Executive Summary puts it:

The Government has, so far, allowed the likes of Northern Beaches and Woollahra to amend their DCPs in an unabashed attempt to reduce the effectiveness of State Government policy. It is hardly surprising that other recalcitrant councils like Mosman adopt the same strategy.

Minimum lot widths, front setbacks, visitor parking, street facades, basement setbacks, views …. there is a maze of micromanaging planning controls being proposed to cruel the effectiveness of the LMR reforms.

Mosman is being Mosman.

The real question is why does the State Government continue to allow NIMBY councils to pull these stunts? Send in the planning administrators we say!!!

It is interesting to note the Minister’s thrashing of Wingecarribee Council in Parliament this week for failing to meet its timeframe targets for DA assessments.  While we think that this is the wrong measure (the only measure that counts is completed dwellings), it is great to see the Minister taking on reprobate councils.

City of Sydney schedule affordable housing tax public forum during business hours

Perhaps the example of Inner West Council last year where the NIMBY’s were blindsided by Sydney YIMBY members has sent shockwaves through council land?

9. Blacktown Council’s right of reply – "we’re not all Smaugs!"

Blacktown City Council CEO Kerry Robinson responded to our story from last week on councils and their treasure trove of unspent local infrastructure funds. We thought we had awoken a Balrog^.#

While we were not intending to tar all councils with a single brush (the focus was predominantly on Bayside) we were pleased to find out that Blacktown’s assessment of the problem was consistent with the summation in our piece last week - that State Government rules are largely to blame:

• Strict nexus and timing rules governing how and when developer contributions can be spent
• Auditor General interpretations that prioritise procedural compliance over delivery outcomes
• State control over critical enabling infrastructure, without which many local infrastructure projects cannot proceed.

We shall continue our campaign to get the State Government to reform a system that is fundamentally flawed and get the infrastructure we need – while not awakening any further potential “Balrogs”!

10. Planning Portal update

They keep ringing in the changes over at the DPHI Planning Portal desk …

On 1 May 2026, the following enhancements were made to the NSW Planning Portal and Major Projects Portal: 

• new amendment request functionality for the development application services (Council and State) 
• minor changes to the activation precinct certificate service, development application services (Council and State) and Major Projects Portal 
• enhancements to the BASIX and controlled activity approval services 
• minor technical updates and fixes.  

These changes have been made to address stakeholder feedback, support the introduction of policy initiatives and address technical issues. There were also changes to existing Application Programming Interfaces (APIs). 

A detailed release summary can be found in the News and Announcements section of the Portal.    

More and more information is becoming available on the Support Hub.  If you need additional support, you may submit an enquiry online or contact the support team on 1300 305 695. For direct enquiries about BASIX, contact 1300 650 908.

11. Members in the news

“Diversified developer Coronation Property, while also focused on well-located, strategic sites, is incorporating an arguably underutilised typology, the terrace… read more ...

Difficult to integrate into true high-rise developments, terraces have become a defining feature of Coronation’s lower-rise portfolio, including projects in Ashbury and Erskineville. Ashbury Terraces places a stronger emphasis on this housing type, forming part of a broader community mix.

Apartment.com.au, 1 May

“Perth developer Sirona Urban has appointed tier-one builder Multiplex to bring its $500-million two-tower hotel and residential project at the affluent beachside suburb of Cottesloe out of the ground… read more ...

The development comprises a 128-room hotel and 125 apartments across two buildings of 17 and 15 storeys.

The Urban Developer, 30 April

“It meant the [Perich’s] family’s business, Greenfields Development Company, was able to plan for how to make the suburb as a whole a desirable place to live, not just for the immediate financial return a small landholder would get if they sold just a few blocks. “We’re here for long term, not for short term, so we have stuck to that initial masterplan, and the result then is much better,” said Mark Perich, the company director, giving the Herald a tour of the suburb… read more ...

The SMH holds up Greenfield Development Company’s Oran Park development as a great example of “getting it right” when it comes to delivering new suburbs.

SMH, 8 May

“Deicorp, in partnership with hotel operator Trilogy Hotels and Marriott International, are set to launch Courtyard by Marriott to anchor the developer’s $640 million Falcon and Alexander project in Crows Nest.

The project, designed by architects Turner, Falcon and Alexander, will launch its new “vertical village” that combines residences, hospitality and retail in a new integrated destination… read more ...

Deicorp founder Fouad Deiri OAM said that bringing Courtyard by Marriott back to Sydney as part of Falcon & Alexander is a natural fit for this location.

Hotel Management, 6 May

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