Budget responds to Western Sydney needs but contributions reform needed to unlock region's growth potential
The Property Council of Australia today said the NSW Government's 2026-27 Budget continues to prioritise major infrastructure investment in Western Sydney.
Property Council Western Sydney Regional Director Ross Grove said the Budget reinforced the scale of investment flowing into Western Sydney, particularly in transport and major projects, but more targeted investment was needed to support development on the ground.
"Western Sydney is entering a defining period, and the government is delivering on many of the projects we've been asking for," Mr Grove said.
"Road funding to unlock jobs in the Aerotropolis over the next four years is projected to be about double what it was in the previous four - and they're also stepping up to the plate and delivering schools in some of the region's newer suburbs.
"The vision for Parramatta also remains alive with work continuing on Sydney Metro West and Stage 2 of Parramatta Light Rail to Olympic Park kicking off with $2.4 billion in new funding."
Mr Grove said the challenge for Western Sydney beyond infrastructure was getting apartments built in middle and outer ring suburbs.
"Developers want to build in Western Sydney, but they're struggling to deliver homes at a cost that responds to what the local market needs.
"The industry is doing its part to meet the challenge by exploring new delivery models such as build-to-rent and the long-term cost advantages of volumetric modular construction, but relief from contributions has the potential to be a make-or-break consideration for developers looking to build in Western Sydney."
In its Pre-Budget Submission, the Property Council identified several opportunities for government to provide relief from the burden of local and state contributions on housing projects which include deferring payment timelines to after construction, a temporary pause on state contributions, and targeted funding to local councils to fund infrastructure where contributions are suspended.
New funding commitments for Western Sydney include:
- $400 million in new funding for the Fifteenth Avenue Upgrade, co-funded with the Australian Government, bringing total project funding to $1.4 billion.
- $200 million in new funding for the Elizabeth Drive Upgrade, co-funded with the Australian Government, bringing total project funding to $1 billion.
- Significant additional transport infrastructure and roads investment for Western Sydney.
- $2.4 billion of new investment for Parramatta Light Rail Stage 2.
- Major investment in hospital infrastructure across Western Sydney, including a new Rouse Hill Hospital, a new Bankstown Hospital, and upgrades at Fairfield Hospital.
- $4.1 billion for Western Sydney school infrastructure, including 12 new and upgraded schools and co-located early learning at 13 public school sites.
