AHURI NEWS

Western Sydney City Deal to boost housing

$5.3 billion in 2017 budget earmarked for Western Sydney City Deal

7 June 2017

Over the next 20 years Sydney’s population will increase by around 1.3 million, much of it in the eight local government areas covered by the Government’s Western Sydney City Deal. The region will need about 185,000 new homes over the next two decades in the west and southwest districts of Sydney to keep up with growth and take the pressure off house prices.

The Western Sydney City Deal will receive up to $5.3 billion from the Australian Government’s equity investment outlined in the 2017 Budget. Under the Deal, the Government will work in partnership with the NSW and local governments, focusing on local job opportunities; connectivity and liveability; catalysing development in the area surrounding the new Western Sydney Airport; stimulating local job growth; and improving transport options with the rest of Sydney. The Deal will offer incentive payments to the State and local governments to support planning and zoning reform, accelerate housing supply and deliver affordable housing outcomes in Western Sydney.

Each local government area will develop housing strategies to help them reach agreed housing supply targets. These strategies might include rezoning land for higher density housing around railway stations or employment centres; reforms that reduce development approval timeframes; and other changes needed to unlock housing supply.

The Western Sydney City Deal will drive housing development and industry in the region surrounding the new Western Sydney Airport, to stimulate creation of jobs close to homes and improve transport options.

Angus Taylor, Assistant Minister for Cities and Digital Transformation, said housing in the right locations was critical to supporting an emerging Western City CBD. ‘It is well known that homes next to transit hubs, with easy access to public transport, are desirable assets, particularly for the young and the elderly. The Western Sydney City Deal will drive housing development and industry in the region surrounding the new Western Sydney Airport, to stimulate creation of jobs close to homes and improve transport options.’

The housing package will be finalised in negotiation with all Western Sydney City Deal partners and is expected to be finalised in late 2017. The eight local government partners are Penrith, Liverpool, Camden, Campbelltown, Fairfield, Wollondilly, the Blue Mountains and Hawkesbury.


The upcoming AHURI national conference, Affordability and liveability in our cities, will feature a panel discussion with key stakeholders of the Western Sydney City Deal. The conference, to be held in Melbourne on Thursday 29 June 2017, will also feature keynote addresses from the Hon Angus Taylor MP Assistant Minister for Cities and Digital Transformation and the Hon Tim Pallas MP Treasurer of Victoria.

Register to attend the conference and get up to speed with these emerging policy developments.