Billions to be pumped into infrastructure in Coalition plan to tackle regional Australia’s housing crisis

Regional Australia will get more than a billion dollars to help build more homes, with councils told to use it or lose it in a bid to get new houses built rapidly.

The battle to fix the housing crisis will be taken to the bush, with the Coalition to silo almost a third of its $5 billion flagship housing war chest for use in regional Australia.

The funding will go towards building infrastructure for more than 160,000 homes across the bush as part of the major election commitment, with 30 per cent of the $5b Housing Infrastructure Programme earmarked for enabling works in the regions including roads, power and water.

Nationals leader David Littleproud said the funding would be provided to councils on a use-it-or-lose-it basis, in a bid to quickly ramp up the building of new homes.

The rise in price of homes in the regions outstripped the cities earlier this year, according to CoreLogic, with Mr Littleproud saying “We’ve got just as much pressure in regional Australia as we do in the cities”.

Nationals leader David Littleproud. Picture: Gera Kazakov

“We’ve got a supply problem – so we’ve got to encourage (councils) to get onto it,” he said.

“(And) one of the major impediments to new housing projects is the lack of funding for critical-enabling infrastructure.”

The cash splash on infrastructure is part of a multi-pronged approach the Coalition is taking to housing, which includes a pledge to make a deeper cut to migration numbers than Labor, and a two-year ban on foreign investors buying existing homes.

The Coalition will also freeze any further changes to the National Construction Code, such as costly seven-star energy ratings introduced last year for new developments.

A roads announcement in Molong with now-Nationals candidate Sam Farraway (second from left) and Cabonne Mayor Kevin Beatty on the far right. Picture: NCA NewsWire/Steve Gosch

Former NSW Minister Sam Farraway – now the Nationals’ candidate for the western NSW seat of Calare – said there are greenfield sites across Australia ready for development, if they had the infrastructure.

Mr Farraway is attempting to wrest the key seat away from former National Andrew Gee, who left the party in 2022 due to its opposition to the Indigenous Voice to Parliament.

Nationals Calare candidate Sam Farraway. Picture: Gianni Francis

“The Coalition’s policy is a game-changer for young people in the Central West who are struggling to break into the housing market,” Mr Farraway said.

“Funding will enable infrastructure such as water, power, sewerage and access roads and on a time-limited basis to give councils the incentive they need.”

Cabonne Mayor Kevin Beatty, whose council area covers a swathe of central west NSW, said extra infrastructure funding would allow some towns in his electorate to double in size.

“Funding to help regional councils such as Cabonne to invest in critical enabling infrastructure – like water and sewer upgrades for Molong – is vital in supporting housing growth,” he said, pointing to a proposal for a 650-lot development in East Molong, which would double the size of the town.

The announcement comes as the Coalition targets key rural seats at next year’s election including Calare as well as Gilmore, on the NSW south-coast.