24 July 2026

In this Edition...

1. Local government incentives are the right move for housing supply

2. Bondi Junction Masterplan shows how vision can unlock housing

3. From greyhounds to green space: Wentworth Park to be demolished early

... and much, much more.

4. NSW risks missing the housing construction boom
5. Tax on discretionary trusts - another blow to housing supply
6. Urban Taskforce appears again before the Senate Select Committee on Productivity in Australia
7. Forget over-55s housing, what about over-65s suburbs?
8. Coming to a carpark near you - new housing!
9. New rules ban SMSFs from borrowing to acquire residential property
10. Research: Housing supply is inversely proportional to lot sizes
11. Auditor-General says HAFF is far short of halfway towards its target
12. Groundwater testing pilot to be rolled out in southern Sydney
13. DEA: Dexus and Mirvac win the Heritage Development Category 
14. Council watch 
       -  Woollahra can’t see the housing for the trees 
15. Members in the news

1. Local government incentives are the right move for housing supply

Councils that process development applications faster are now being rewarded by the NSW Government.  

The results of Round 1 of the $200 million Faster Assessments Incentive Program were announced this week, awarding $54 million to councils across NSW in matched grant funding. 

The program deliberately targets those councils that are actively seeking to reduce planning red tape and processing times, giving grants of between
$1 million and $3 million to support local infrastructure projects. 

Urban Taskforce Australia has long called for State Government incentives to encourage faster DA assessment.  The Faster Assessments Incentive Program is an important step in that direction. 

Rewarding good performers is a sensible approach to delivering urgently needed new housing supply. 

Round 2 is now open and will provide an additional $67 million for eligible councils that reduce average assessment timeframes in the 2025–26 financial year. 

Councils do not need to apply to be considered, but will be eligible if they have housing targets over 1,000 dwellings under the National Housing Accord. 

2. Bondi Junction Masterplan shows how vision can unlock housing

Waverley Council has approved its new Masterplan for Bondi Junction, following a vote at its meeting last Tuesday night. 

The decision confirms a plan that has seen debate, disagreement, and the strategic use of AI lobbying. 

At its heart, though, is a vision for an underserved area of Sydney that has been canvassed and consulted on for a couple of years, and which seeks to turn a major commercial, residential, and transport hub into a place people want to be. 

It is a great step forward, unlocking up to 3,000 new homes, creating better civic and open spaces, and bringing life back to the CBD after hours. 

The Council, led by Mayor William Nemesh, is to be congratulated on having the vision and foresight to push this Masterplan forward and for seeing the potential in Bondi Junction. 

While segments of the population may oppose any redevelopment, the Council’s initiative allows it to plan for new housing in an area that can support it and would benefit from it. 

It sets a standard for how councils should be – looking towards the future and seeing opportunity in the areas they govern, rather than pulling up the drawbridge in an effort to stop new housing. 

Interviewed about the development on radio 2SM, Acting Urban Taskforce CEO Paul Waterhouse said that the redevelopment would be positive: 

Urban Taskforce now looks forward to seeing the future planning proposal for Bondi Junction when it has been prepared. 

3. From greyhounds to green space: Wentworth Park to be demolished early

A key part of the State Government’s plans to increase density around Wentworth Park – the demolition of the greyhound racecourse and its return to public parklands – will start a year earlier than planned. 

The accelerated timeline has been enabled by the NSW Greyhound Breeders, Owners, and Trainers Association requesting an early termination of its lease over the site. 

The decision to demolish the racing track to create more green space was welcomed by Urban Taskforce when first announced (see ULN, 12 December, 2025) as a way of transforming the region to support more housing. 

With neighbouring precincts such as Pyrmont and the old Sydney Fishmarket site already zoned for additional housing, this new green space could deliver around 2,500 more dwellings. 

This area will soon be supported with better public transport (like the new Pyrmont metro) and is already well positioned, with access to not only to the fishmarkets and the harbour foreshore, but beyond to the city, Darling Harbour, Broadway, and universities (Sydney, UTS, and Notre Dame). 

If accelerated planning and site works can occur before Christmas, it will move up the timeframe significantly for further redevelopment. 

But the real work – the rezoning of surrounding properties needed to capitalise on the extra open space – is still to be done. 

Please note, articles may be behind a paywall.  

4. NSW risks missing the housing construction boom 

There is currently a dropoff between approval stages, when looked at in terms of total dwelling numbers.  For example: 

• development approvals average at 76% of lodgements made 10 months earlier;
• building approvals average 79% of development approvals 6 months earlier;
• gross completions average 91% of building approvals. 

Put together, this means that from lodgement to completion only 55% of potential dwellings in the pipeline actually get built. 

While some observers claim that there are high levels of development approval (which doesn’t appear to be borne out by this data), there is a hidden issue.  The report says that, as applications are only lodged when there is a “substantial chance of success”, the approval rate cannot be seen as an assessment of the impact of planning restrictions.  Project that are going to be obstructed by local rules don't often get lodged.  

The result of this research was the creation of what Dr Tulip has referred to as his “naughty list” of councils not approving enough housing. 

On the development approvals side (up to June, 2026), the worst transgressors in the Greater Sydney region were reported to be: 

• Hunters Hill – 50 approvals, 31% of its target;
• Sydney – 3,110 approvals, 41% of its target;
• Hornsby – 920 approvals, 42% of its target;
• Georges River – 1,054 approvals, 42% of its target; and
• Penrith – 1,452 approvals, 43% of its target. 

On building approvals, the league table changes a little: 

• Strathfield – 298 approvals, 22% of its target;
• Willoughby – 389 approvals, 30% of its target;
• North Sydney – 724 approvals, 32% of its target;
• Waverley – 323 approvals, 35% of its target; and
• Ku-ring-gai – 1,026 approvals, 35% of its target. 

Further, if you use the benchmarks of achieving more than 91% of building approvals and more than 72% of development approvals as the thresholds for good performance, only Canada Bay and Hawkesbury pass the test. 

At this rate, if the pace of development approval, building approval, and completion at a local government level does not pick up, it is highly likely that the National Housing Accord target will never be reached. 

5. Tax on Discretionary Trusts – Another blow to housing supply 

In its continuing search for additional revenue, the Federal Government has turned its sights on discretionary trusts. 

The plan will see a minimum 30% tax rate applied to these vehicles at the trustee level.  This would be achieved through the issue to beneficiaries of non-refundable credits for the tax payable by the trustee, removing current flexibility, such as income splitting and the offsetting of losses. 

The development sector uses trusts for a variety of reasons, and the current system allows for property income and losses to be managed, in much the same way as they are in the share market. 

Residential development is an inherently risky business.  Delays are common, especially during the construction phase, and can be very expensive. In many instances, development land is held in a discretionary trust to ringfence it from other projects in order to reduce risk. 

In this way, smaller developers can insulate their overall business from these risks by holding land for development in an individual discretionary trust, meaning that the assets of the family members are protected from the potential impact of a downturn in their business. 

However, under the Federal Government’s plans, this will no longer be possible.  A trustee will need to pay 30% tax on any distributions from a profitable trust AND wear the losses from any unprofitable one. 

While the Federal Government has offered capital gains tax and income tax offsets to businesses being forced to restructure, the states are refusing to offer stamp duty exemptions for transferring properties between funds, adding to legal costs, financing changes, and the loss of accumulated tax losses that underpin project feasibility. 

As many as 360,000 legitimate businesses face a restructuring nightmare under these tax changes, which the Commonwealth has indicated it intends to legislate before Christmas. 

So, what will the result be? 

• developers and financiers will be less willing to take on risk;
• it will be harder to borrow;
• it could force smaller, family-owned property developers out of the market;
• it could compel investors to move money overseas in the search for better, and lightly taxed, returns; and
• fewer houses will be developed – not a good outcome in the middle of a housing supply crisis. 

Urban Taskforce will be making a submission to the current Federal inquiry into minimum tax on discretionary trusts.  We will be calling for: 

• allowing discretionary trust income and losses to be grouped (similarly to companies) with a minimum tax threshold applied to individual distributions;
• carving out existing real property owned by a discretionary fund from the requirements;
• (if the above is not possible) applying a savings provision to protect existing real property so that the change only applies to new trusts, similar to the negative gearing arrangements from the Federal Budget.  This would be less than ideal, but would at least minimise distortions that would apply to portfolios that cannot restructure unless stamp duty relief is applied; or
• adopting the idea (proposed by Bill Shorten in 2019) to apply the minimum tax at the individual beneficiary level, removing the option of income tax splitting.  Again, while not ideal, it would be far less distortionary than the proposed approach to apply the tax at the trustee level. 

What is clear, is that these changes, as proposed, might be the worst possible option when it comes to supporting housing supply. 

6. Urban Taskforce appears again before the Senate Select Committee on Productivity in Australia

Earlier this week, the Acting CEO of Urban Taskforce, Paul Waterhouse, appeared before the Senate’s Select Committee inquiry into Productivity in Australia. 

Urban Taskforce’s second presentation to the Committee allowed us to emphasise key issues holding up housing supply, that were detailed in our previous submissions. 

We focused on the impacts of taxes, fees, and charges, which add 35-40% to housing prices; the fact that “contributions” do not make housing affordable; and why payments at construction certificate stage, rather than at occupation certificate, make housing less feasible. 

The Committee asked a variety of questions about how to improve the National Construction Code, what might be needed to support modern methods of construction (MMC), and what other innovations were needed. 

On the first, we said that structural changes are needed, reducing over-the-top “explanatory notes” and targeting the code towards specific building classes. 

On MMC we reported that partnering and jointly funding manufacturing would help to create the industry, but planning restrictions that discourage the use of MCC, such as a ban on land lease development within Greater Sydney, needed to be lifted. 

In relation to innovation, we welcomed new approaches to facilitate development and construction, but reiterated that the taxes, fees, and charges besetting development were still the biggest concern, as they continue to make projects unfeasible. 

A lack of Federal support for housing-enabling infrastructure was also making things worse, as we highlighted in our introductory statement: 

“But housing-enabling infrastructure is essential if many of these projects are to get off the ground and even more Commonwealth support is urgently needed. 

In its absence state or local authorities have to cover the cost of infrastructure leading to more financial pressure being placed on the housing sector to fund it.  

And so, the non-feasibility and non-supply cycle continues”. 

Urban Taskforce has made two submissions to the inquiry: 

7. Forget over-55s housing, what about over-65s suburbs?

Spike Milligan famously once referred to the Central Coast suburb of Woy Woy as "the world's only above-ground cemetery”. 

While we at Urban Taskforce choose not to give any credence to that assertion, there appears to be a disturbing trend where more suburbs across Greater Sydney are ageing. 

And not just by a small amount. 

The number of suburbs whose populations over 65 outnumber those under 20 has trebled since the start of the Millenium. 

ABS population data shows 54 neighbourhoods across the City and Central Coast fell into this category in 2024, up from just 18 in 2001. 

As might be expected, many of these are waterfront suburbs like Potts Point, Double Bay, Cronulla, or Umina, although inland locations such as Castle Hill East and Katoomba also showing an inclination towards older residents. 

This comes at a time when the media is reporting a growing number of empty bedrooms in existing housing – estimated to be as high as 13 million – due to families not downsizing. 

The results bear witness to the issues being faced by the development sector – attempts to redevelop and revitalise existing precincts face increasing opposition from local NIMBYs, leading to fewer new houses and less opportunity for younger families. 

Residents of these ageing suburbs, often appear to oppose change on principle, seeking to preserve their areas in suburban development time capsules.  This drives their children and grandchildren further west, where housing is more affordable, or to other cities altogether, in the search of opportunity and accommodation. 

This is contributing to a decline in home ownership, which is now at its lowest level since 1954, with fears that it could fall further due to poor affordability and a lack of supply. 

With a median combined house and unit dwelling value of $1.26 million in Sydney – significantly outpacing other capital cities – this problem could easily get worse. 

If residents don’t downsize and more homes aren’t built, there will be less opportunity for young people. 

If planning rules and controls aren’t eased, housing will continue to get harder to deliver. 

If taxes, fees, and charges aren’t reduced, prices are going to go up. 

And, if all that comes to pass, the housing supply crisis will get worse. 

Please note, articles may be behind a paywall. 

8. Coming to a carpark near you - new housing!

While pre-existing housing will always be a prime target for uplift and redevelopment, the HDA is reported to have approved a range of different land uses being repurposed, including: 

• churches and church land;
• shopping centres;
• university campuses;
• industrial sites;
• golf courses;
• hospitals; 
• bowling clubs; 
• pubs, clubs and hotels;
• car service centres and dealerships; and 
• even a former juvenile detention site.

Needless to say, not everyone sees the benefit in turning these buildings into housing, and there will occasionally be community opposition. 

But if the housing supply crisis is to be addressed, we’ve got to be creative with the properties that we think we can use.  And almost nothing should be off the table.  

Please note, articles may be behind a paywall. 

9. New rules ban SMSFs from borrowing to acquire residential property

The ALP is currently meeting in Adelaide for its National Conference, at which it will approve the draft ALP National Platform. 

Given the stated importance of housing to the Federal Government, the Urban Taskforce research team had a look at what was being proposed.  We were interested to find this: 

It left us wondering – how does the National Platform position square with the Federal Government’s recent decision to axe limited recourse borrowing arrangements (LRBAs) for residential property within self-managed super funds (SMSFs).

From 10 August, 2026, any new contracts will be prohibited from using these arrangements (existing contracts will not be affected).  This will prevent them from accessing capital that might otherwise be used to purchase new housing. 

Having already quarantined investors to the new property market in the most recent Budget, this throws another hurdle in the way of housing supply. 

It is not just going to affect the rental market.  30% of apartment presales currently come from SMSFs – without these investors, many apartment projects will struggle to get off the ground. 

In other words, at a time of escalating construction costs, labour shortages, and increasing uncertainty, the Government has effectively cut off a significant source of funding and a sizeable market for the development sector’s product. 

This could reduce the number of homes built per year by anywhere from 4,000 to 40,000. 

Meanwhile, while the ban on LRBA’s for residential property applies within Australia, it does not prevent SMSFs from investing in residential and commercial property in overseas markets.  So, the Budget tax changes could drive a shift to offshore investments. 

Just at a time when we are facing a housing supply and affordability crisis, the Government is turning off a key source of funding that specifically supports apartment development.  Instead of incentivising the support of local housing supply, it will perversely encourage superannuants to look elsewhere. 

It doesn't look to us like those barriers to the use of superannuation funding are being removed. 

10. Research:  Housing supply is inversely proportional to lot sizes

Analysis of zoning reforms in the City of Campbelltown in Adelaide (not to be confused with Western Sydney) has shown that cutting minimum lot sizes significantly boosts housing supply. 

Research company e61 Institute looked at the impacts of zoning reform in that council, which reduced the size of lots from 350sqm to 150sqm. 

Following the reform, carried out in 2014, researchers found that housing approvals increased by 67% and housing stock by 6% over the ensuring seven years, rising from 340 dwellings per annum in 2014 to 820 by 2018. 

The increase was entirely in townhouses and rowhouses, and it resulted in cheaper house prices and lower rents. 

The reform was reversed after local opposition to densification, after which approvals fell - back down to 380 dwellings per annum by 2023. 

The reason for the policy change was concerns about the perceived adverse impacts of increased densification.  However, the research found little evidence of an increase in stated issues such as traffic and crime during the period of higher density development.  

Researchers said that while locals may have reasons to oppose densification, they need to balance concerns against the potential benefits offered by greater density.  

More evidence that policies such as the low- and mid-rise housing reforms (LMR) should not be a cause for concern for local residents. 

Should we tell Mosman Council?   

11. Auditor-General says HAFF is far short of halfway towards its target

The Australian National Audit Office has warned that Labor’s housing targets could fall short.

The report – “Department of the Treasury’s Design and Delivery of the Housing Australia Future Fund and the National Housing Accord Facility” – found that only 1,432 social and affordable homes have been delivered by the Federal Government’s Housing Australia Future Fund (HAFF) since 2023, up until May of this year, just halfway through its existence. 

The review of the HAFF by independent Auditor General, Dr Caralee McLiesh PSM, reported that there was considerable uncertainty around the agency’s target of 40,000 social and affordable homes being delivered by 2029.  

The report predicts that the program will now only reach the halfway mark - 20,000 social and affordable homes - by 30 June, 2028.  

While Federal Treasury’s design of the HAFF was considered largely effective, and the delivery arrangements are partly effective, there was “insufficient transparency on program delivery, costs, and impact” and Treasury “has not assumed clear responsibility for the overall delivery of the program”.  

The audit found that core delivery oversight arrangements like governance, risk, evaluation, and assurance were all established late, while monitoring and reporting arrangements do not yet provide a clear, transparent picture of performance and outcomes.  

Treasury has agreed to the five recommendations in the report, being (in summary):  

• to implement fit-for-purpose governance and information management policies and procedures; 
• regularly to assess effectiveness of controls to address program risks; 
• clearly to define roles and responsibilities to manage and act upon those shared risks; 
• to establish performance measures to assess the efficiency of program delivery; and 
• to report publicly and clearly on program performance.  

The Auditor-General also identified key messages intended to guide the operations of other Australian Government entities, such as the need to:  

• focus on identifying and managing shared risks; 
• review these risks regularly to ensure that they continue to be appropriate, accurate, and current; 
• evaluate long-term programs throughout, with view to conducting a longer-term evaluation; and 
• ensure that there is transparency in program costs, delivery, and impact to determine value for money.  
   

Please note, articles may be behind a paywall.  

12. Groundwater testing pilot to be rolled out in southern Sydney

A new pilot program is being tested in Sutherland Shire. 

The $472,000 Sutherland–Kirrawee Groundwater Investigation Pilot will establish
20-30 groundwater monitoring bores for three years to collect data on groundwater and dewatering. 

The dataset is intended to help applicants by providing information before lodgement, which might otherwise require a costly independent study. 

The NSW Government believes that this will reduce upfront costs and make the development sector more cost-effective. 

The dataset collected over the pilot will be able to support approvals and improve planning. 

The initiative is led by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) and funded by the Department of Planning, Housing and Infrastructure (DPHI). 

13. DEA: Dexus and Mirvac win the Heritage Development Category

Demonstrating the best in heritage preservation and reuse, Dexus and Mirvac won the Heritage Development category in this year’s Development Excellence Awards.

Protecting Sydney’s heritage is a key priority, and the refurbishment of the city’s first skyscraper was no small task.  

33 Alfred Street is one of the city’s most iconic commercial buildings and has undergone a top-to-bottom redevelopment as part of a partnership between Dexus and Mirvac, driven by a clear ambition to reimagine a landmark while preserving its architectural legacy.

The main challenge was how to address the heritage façade, which restricted harbour views and blocked natural light.  City of Sydney Council was reluctant to change the iconic original grey and gold design.  Innovative design and engineering saw the design essentially flipped, with the gold pattern becoming smaller, to enable larger, grey panel glass. 

Dexus and Mirvac and the project team are congratulated for their achievements in maintaining and elevating the heritage of Sydney’s first skyscraper. 

Our thanks to our sponsors

14. Council watch 

Woollahra can’t see the housing for the trees

One of Sydney’s more NIMBY councils is persisting with a strategy that – for all intents and purposes – appears to be a not-so-subtle attempt to stop development around Woollahra Station. 

As reported previously in the ULN (26 June, 2026), Council has voted to conduct a study of the “urban forest” surrounding the site – NOT to block development, the Mayor assures us, but because “nobody was proposing to remove this canopy before, so nobody needed to count it”. 

According to reports in the AFR, the main advocate for this initiative convinced councillors to support the study “so that when the State Government comes along to chop it all down, Council can say ‘sorry, the owls live here’.”  (It seems that someone may have said the quiet bit out loud.)

This would appear to contradict Mayor Sarah Dixon’s position. 

Never mind that Woollahra has an abundance of bushland – Lough Playing Fields and the extensive Cooper Park are a mere 6 minutes’ walk away from the contested “urban forest”; Harbourview Park is 12 minutes away; and Trumper Park is 18 minutes away – each a short flight for owls not as constrained by suburban street patterns. 

But Mayor Dixon is adamant that council isn’t blocking development: 

“No, the motion passed at council stops zero homes, it’s to survey and report back in September. It also wouldn’t stop the station.” 

So, why do the study, if not to throw barriers in the way of new development?  Let's look at the motion itself (see part B, 5.), which requires the study to: 

“Explore any other ways to proactively help protect the Forest.”

Sounds suspiciously to us like stopping development might be the goal …

Please note, articles may be behind a paywall.   

15. Members in the news

*Please note these articles may be paywall protected

“This proposal [to build 1,500 homes on 99 hectares in Werrington], submitted by WSU and Stockland, will make use of land no longer required for university operations while creating a connected, walkable community.”  read more…

The State Government has approved the redevelopment of superfluous Western Sydney University landholdings to create housing and jobs in a new mixed-use, walkable neighbourhood, that will deliverbuildings of two to seven storeys. 

The Western Weekender, 23 July, 2026
 

“The [Crosspoint] development owned by Aware Real Estate, developed in partnership with Barings and backed by Aware Super, one of Australia’s largest and super funds.”  read more…

The first sod was turned by Prue Car MP, Deputy Premier and Minister for Western Sydney, on the $139 million Crosspoint industrial site, which is expected to provide goods and services to the Western Sydney International Airport and create over 600 jobs. 

realcommercial.com.au/The Daily Telegraph, 23 July, 2026
 

“Chief executive of private equity real estate firm Conquest, Michael Akkawi, said ‘Eastlakes has been overlooked for too long, and this is the community’s moment’.”  read more…

The $329 million redevelopment of Eastlakes Shopping Centre will increase heights from 14 to 18 storeys, creating 736 dwellings.  Despite a Civil Aviation Authority protest that the development would affect airspace, an independent report said the towers “will not impact the safety, regularity and efficiency of air transport operations at Sydney Airport or interfere with airport operations.” 

The Daily Telegraph, 22 July, 2026
 

“For property developer and co-owner Dexus, and builder Built, the next phase involves filling the steel exoskeleton with mass timber elements and a glass facade.”  read more…

The $1.45 billion Atlassian Central tower – soon to be the world’s tallest hybrid timber building – has topped out, with an Australian evergreen being lifted to the summit to celebrate the placement of the highest structural beam.  It beats the previous record holder by 100 metres. 

SMH, 22 July, 2026
 

“Behind the shift is Aqualand’s prestige arm, which publicly earmarked the 1767sq m site at 51-55 Archer Street, Chatswood for a 35-storey boutique project in 2024.”  read more…

The HDA approved proposal will create a $155 million, 45-storey tower in Chatswood, with 114 apartments, including 51 affordable homes – 20 in perpetuity, and 31 for 15 years. The project is designed by PTW.  

The Urban Developer, 22 July, 2026
 

“The applicant is Metrics Credit Partners, which took over the site after developer APH Holding collapsed in 2024, marking a trend for non-bank lender Metrics taking on projects when developers it financed failed.”  read more…

What was initially planned as a 15-storey hotel in Melbourne’s Box Hill is being recast as a 28-storey residential tower with 184 apartments and 14,943 sqm of residential GFA, with a four-storey podium providing parking for 140 cars, and two retail tenancies. 

The Urban Developer, 21 July, 2026
 

“Coronation Property has landed planning approval for a new compact apartment typology at its Precinct 75 build-to-rent community in Sydney’s inner west.”  read more…

The company is testing out a new format for build-to-rent properties, catering for single-person households who have been priced out of Sydney’s middle markets, with floorspaces of 30-35 sqm instead of the current minimum of 50 sqm. 

The Urban Developer, 20 July, 2026
 

“Stockland has filed plans to double the yield of its redevelopment of a former timber yard in Melbourne’s inner north.”  read more…

Initial plans to turn the 4,009 sqm site in Albert Street, Brunswick are being scaled up from 129 apartments approved by Moreland City Council to an 11-storey building with 223 apartments. 

The Urban Developer, 20 July, 2026
 

“Occom has won the 2026 Telecommunications Industry Excellence (TIE) Award – Commitment to Customer Service!”  read more…

The internet service provider’s Customer Service Excellence Programme has been recognised by the Australian Telecommunications Alliance for its clear onboarding, multilingual customer support, extended service hours, and consistent service standards. 

Occom blog, 15 July, 2026

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