The 2026–27 NSW Budget reflects a Government increasingly focused on delivery. Four budgets into its term, the emphasis has shifted from announcing major new reform agendas to implementing those already underway, while maintaining a disciplined approach to fiscal management.
This year’s Budget balances immediate cost-of-living relief with continued investment in the infrastructure, public services and planning reforms needed to support long-term growth.
Education, health, housing, transport and domestic and family violence services all receive significant investment, alongside a substantial infrastructure pipeline designed to support population growth and economic participation.
The Budget also projects a return to surplus from 2027–28, reflecting the Government’s focus on budget repair while continuing to invest in essential services.
For the faith housing sector, the Budget largely builds on foundations already established through Building Homes for NSW, Homes NSW, planning reforms and housing-enabling infrastructure investments.
While there are limited new funding commitments for social housing, affordable housing and homelessness services, the Budget includes several measures that have the potential to accelerate housing delivery and strengthen partnerships between government, Community Housing Providers and faith-based organisations.
Key Announcements
Housing, Social and Affordable Housing
- $80 million – Expanded Pre-Sale Finance Guarantee
Additional guarantees will support CHP-led housing projects by helping developments secure finance and proceed sooner. FHA has welcomed this initiative as a practical measure to address one of the key barriers to housing delivery.
- $52.1 million – Development Coordination Authority
A new authority will be established to coordinate approvals and accelerate housing delivery across government.
- $32.3 million – Modern Methods of Construction and Approvals Reform
Funding will support building approvals reform, digital systems and the integration of Modern Methods of Construction into the housing delivery system.
- $24.9 million – Planning System Improvements
Additional investment to improve planning processes and support faster housing delivery.
Homelessness and Community Services
- $39 million – Temporary Accommodation
Funding in 2026–27 to support people experiencing or at risk of homelessness.
- $4.5 million – North Coast Homelessness Services
Funding over three years to support the operation of three homelessness service centres.
- $184.1 million – Domestic, Family and Sexual Violence Services
Additional investment in frontline services over four years.
FHA Response
Faith Housing Australia welcomes the continued focus on increasing housing supply and the practical measures announced to improve housing delivery.
The expansion of the Pre-Sale Finance Guarantee and investment in Modern Methods of Construction build on broader reforms already underway through Building Homes for NSW, planning reform and the Homes NSW Direct Dealing framework.
Together, these measures strengthen the foundations for increased housing delivery and create new opportunities for partnership between government and the community housing sector.
The Next Opportunity: Unlocking CHP Capacity
FHA believes the next opportunity for NSW is to maximise the impact of existing government investment by creating stronger and more predictable partnerships with Community Housing Providers.
Faith-based organisations and Community Housing Providers already bring significant land holdings, development opportunities, capital and delivery capability to the housing system. With clearer partnership pathways and greater certainty, this capacity could play a larger role in delivering social and affordable housing under Building Homes for NSW.
To support this, FHA has proposed four practical partnership opportunities:
- Create a dedicated capital allocation stream linked to Direct Dealing, providing a clearer pathway for partner-originated projects to access government investment.
- Formalise acquisition and take-out models that enable Community Housing Providers to bring forward projects with greater certainty.
- Publish a coordinated, multi-year pipeline that brings together government projects, Community Housing Providers, faith-owned land and other delivery partners.
- Establish a CHIF-style grants program for Tier 3 Community Housing Providers and regional projects, helping unlock smaller-scale social and affordable housing opportunities.
FHA has already commenced discussions with the Minister’s Office and Homes NSW regarding opportunities to strengthen partnerships and accelerate housing delivery through the community housing sector.
Looking Ahead
As attention increasingly turns to the 2027 NSW Election, FHA will be working with members to develop a practical policy platform focused on increasing housing supply, strengthening homelessness responses and unlocking the unique contribution faith-based organisations make across the housing continuum.
NSW has the largest social housing challenge in the country. Meeting that challenge will require long-term partnerships between government, Community Housing Providers, faith-based organisations, local government and communities.
FHA looks forward to working with members and government to help translate housing reform into housing outcomes.