Western Sydney City Deal - Planning and Housing

The City Deal will deliver a package of planning reforms to support new housing, improve affordability and deliver housing choice for residents.

Planning for growth

A growing population and improved local job opportunities will boost demand for housing in the Western City. Efficient planning and delivery of new housing will be vital for the region’s future prosperity.

With a joint $30 million funding commitment from the Australian and NSW governments, the Western Sydney Housing Package will support new housing and improve affordability. The City Deal commits to smart planning for future housing and streamlined processes for delivering new homes that meet community expectations of local character, good design and access to services and transport.

Land use and infrastructure planning will be undertaken for a new Growth Area for the Greater Penrith to St Mary’s corridor to unlock new housing and ensure it is planned, delivered and integrated with infrastructure, such as schools, health care and transport.

Delivering new housing

The NSW Government will publish 5 and 20 year housing targets for each local government area to deliver the 184,500 new homes needed in the next 20 years. 

Six local governments facing substantial growth pressures will be supported to accelerate the development and adoption of new Local Environmental Plans and associated local housing strategies. New plans will be agreed within two years and will set a course to achieve local housing targets.

Improved planning processes

The City Deal also commits to action that will reduce the costs to home builders and buyers through improvements to planning processes.

A Planning Partnership will be established by local governments, in partnership with the NSW Government, to achieve more efficient planning outcomes through improved coordination.

Pilot Growth Infrastructure Compacts will be developed to coordinate planning and delivery of future infrastructure needs to support new housing supply. Sub-regional models for future transport and water infrastructure needs will be developed to inform these compacts.

Local councils will develop uniform and best practice local government engineering design standards to simplify the development process and appropriately plan for telecommunications requirements.