The NSW Government’s 2025–26 Budget delivers a decisive and forward-focused response to the state’s housing supply and affordability challenges. For the building and real estate sectors—and particularly the growing Build-to-Rent (BTR) industry—the Budget outlines a suite of reforms and investments aimed at unlocking housing, accelerating construction, and supporting a stronger, more skilled workforce.
Here’s what stands out for developers, investors, and the broader BTR community.
$1 Billion Pre-Sale Guarantee to Stimulate Construction
A centrepiece of the Budget is the new $1 billion pre-sale guarantee initiative. This bold move will see the government act as guarantor for pre-sales on qualifying residential developments, reducing risk and improving access to project finance. It’s a practical step to help get more projects off the ground—unlocking an estimated 5,000 new dwellings immediately and supporting delivery of 15,000 homes over five years.
For BTR developers, this initiative could pave the way for faster capital deployment and more predictable project pipelines.
BTR Incentives Locked In for the Long Term
In a major win for the BTR sector, the NSW Government has extended the 50% land tax concession for BTR projects indefinitely. This removes the previous 2039 sunset clause and signals long-term policy stability that’s critical for investors and institutional developers.
In addition, developers will now have the option to deliver infrastructure—like local roads and parks—on-site as part of their BTR or residential project plans. This will help fast-track delivery and avoid bottlenecks in public infrastructure approvals.
Building Commission Backed with $145 million
The Budget reinforces the state’s commitment to building quality and consumer confidence, with $145 million allocated to support the work of Building Commission NSW. The Commission plays a vital role in lifting standards, ensuring compliance, and protecting the integrity of the housing market—particularly important for the BTR sector’s long-term reputation and trust.
Skills and Workforce Investment to address Labour Shortages
Addressing the construction workforce shortfall is another priority, with the Budget committing a record $3.4 billion to TAFE and skills development. This includes training for key trades and apprenticeships in housing-related industries, backed by federal incentives of up to $10,000 for new apprentices and $5,000 for employers.
These investments will help ensure the industry has access to a skilled workforce needed to meet housing demand and deliver projects efficiently.
Planning Reform and Regional Infrastructure Investment
The Budget includes $122 million to drive planning system improvements, support regional infrastructure delivery, and improve water connectivity—another practical step toward clearing the path for new development. Reforms to planning approval processes and zoning frameworks are also continuing, aimed at increasing housing diversity and encouraging density where it's most needed.
What this means for the Build-to- Rent industry?
The 2025–26 NSW Budget sends a strong message of support to the Build-to-Rent industry. From tax incentives and financing support to regulatory streamlining and workforce investment, the state is actively shaping an environment that supports long-term, high-quality rental housing.
As demand for rental options continues to grow, especially in urban and well-serviced regional areas, these policy settings position NSW as a national leader in BTR adoption and housing innovation.
To learn more about how these changes may impact your next BTR project or to explore opportunities with our team, get in touch today.
