Property Council NSW Executive Director Katie Stevenson said it was vital to make sure NSW - as Australia's largest and growing economy – had the resources needed to accommodate population growth and invest in the infrastructure that underpins housing supply and productivity.
"NSW is home to the nation's largest economy and continues to attract people, jobs and investment from across Australia and around the world.
"Growth brings opportunity, but it also brings the need for new roads, public transport, utilities and community infrastructure."
"If we want to deliver more homes, we need the infrastructure that makes new housing possible."
Ms Stevenson said every new community required enabling infrastructure before homes can be built and occupied.
"Whether it's roads, transport links, water infrastructure or community facilities, these investments are essential to unlocking housing supply and supporting growing populations.
"A fair and sustainable share of GST revenue would strengthen NSW's capacity to invest in the infrastructure needed to support more homes and better-connected communities."
Ms Stevenson said the Productivity Commission's review was an opportunity to make sure funding arrangements better reflected the demands being placed on Australia's fastest-growing states.
The Commission's interim report found the 2018 GST reforms had largely failed to achieve their intended objectives. The NSW Government has argued for changes to GST distribution arrangements and has described the current system as unfair and lacking transparency.
"NSW is doing much of the heavy lifting when it comes to accommodating population growth and driving national economic activity.
"The infrastructure needed to support that growth comes at a cost, and funding arrangements should recognise the pressures facing states that are building the homes, workplaces and communities Australia needs.
"When funding and population growth move further apart, it becomes harder to deliver the infrastructure that keeps housing supply moving.
"We need to make sure governments have the capacity to invest in the infrastructure that enables housing, supports productivity and improves the quality of life in our communities," she said.
