The state government has announced new targets and incentives for 43 NSW councils to build more housing across Sydney, the Illawarra, the Hunter and Central Coast, and regional parts of the state.

Unveiling the plans during his first State of the State address in Sydney on Wednesday, Mr Minns said the measures would address the state’s housing crisis.

The 43 LGAs have each received a five-year target for how many homes they are expected to deliver by 2029.

For example, Penrith, in Sydney’s West, will have to come up with 8,400 new homes by 2029, while City of Sydney is required to deliver 18,900. Blue Mountains only has to hit 600 new homes in the timeframe.

Councils that meet and exceed their housing targets will be rewarded from a $200 million grants pool that they can use to fund green spaces, sports facilities and street maintenance.

Guideposts

The targets will provide guideposts for local government as well as access to financial support for future housing, Mr Minns said.

View housing targets here.

The Premier revealed that under the roadmap,  Sydney’s east will carry 41 per cent of the burden, followed by middle Sydney (including Parramatta, Canterbury-Bankstown, Blacktown and Georges River) at 37 per cent and Sydney’s west accounting for the rest.

He acknowledged it would be a big change for some councils.

“In Kuringai, Hunters Hill and Woolharra more than 70 per cent of new housing will be delivered as a result of these changes, but in Liverpool, Wollondilly and Parramatta, councils that were already planning to build at scale, it will be less than 20 per cent,” he said.

In the past, Western Sydney has accepted the overwhelming burden of new housing without proper infrastructure to cope with the increase in population, Mr Minns said.

“This plan ensures we are now building more housing around established infrastructure, in places that are connected to work and transport, in communities that already have schools and hospitals.

“These five-year targets ensure that while all areas would see an increase in homes being built to help address the housing crisis, new housing will be more fairly rebalanced from the West of Sydney towards the East and North of Sydney.”

Over the next five years 82 per cent of the housing targets come from infill areas with 18 per cent to come from greenfield locations.

Planning reform

Mr Minns said it was clear that NSW had a planning system that wasn’t keeping pace with the problems the state is facing.

He said the government has signed agreements with all but one of the 13 councils targeted under it’s controversial Transport Orientated Development (TOD) – the biggest rezoning shakeup in Australian history – with Kuringai, who has vowed to take legal action against the plan, the sole outlier.

The TOD will allow major new development around 40 train stations, including more high rise housing.

Asked about repercussions for councils that failed to meet their targets, the Premier said he wasn’t holding a gun to anyone’s head.

“Our simple proposal is everybody needs to take a little bit so we can give the next generation a go,” he said.