As housing growth continues across NSW, the state is ready to fund upgrades to community areas — one major factor determines who gets the money.
The NSW state government has unveiled a three‑year, $40 million program designed to incentivise councils to boost housing approvals, with funding on offer to improve parks, sports fields, swimming areas and town squares.
Tench Reserve in Jamisontown, NSW. Picture: Brett Boardman
The Better Open Spaces Program is aimed at improving public spaces as more homes, jobs and infrastructure are delivered across the state.
According to the government, councils in the highest housing‑growth areas will receive funding first, with projects ranked based on the number of new home approvals in each local government area (LGA) during the National Housing Accord period.
Once ranked, eligible projects will then be assessed against value for money, deliverability, inclusive design and strategic alignment, the state said.
NSW minister for planning and public spaces Paul Scully said the program was an essential piece of the puzzle in boosting housing supply.
“Great public spaces are at the heart of our communities, and the Better Open Spaces Program will help to keep communities active, connected and thriving," Mr Scully said.
“We’re matching housing growth with investment in quality open spaces from parks to town squares and swimming spots and more.”
Under the National Housing Accord, all levels of government agreed to a shared target of delivering 1.2 million new homes over five years to June 2029. NSW’s share of that is approximately 377,000 homes, based on its population size relative to the rest of Australia.
First launched on 1 July 2024, the target was split across states and territories based on population, meaning progress is being measured not just nationally, but within each jurisdiction as well.
In March 2026, analysis from the National Housing Supply and Affordability Council found Australia as a whole was expected to meet the goal by June 2030 — around a year after the Accord’s end.
NSW, however, is not expected to reach its share until June 2031.
The analysis found that over the 12 months to March 2026, NSW building approvals were up 8%, with 21% of its Accord share approved. But completions in the state were down 3% over the year, with 15% of its total share target built.
How the program will work
According to the NSW government, Round 1 is now open, with $36 million available to councils across Greater Sydney, Illawarra‑Shoalhaven, the Central Coast, Lower Hunter and Greater Newcastle, as well as the top 10 highest‑performing regional LGAs for housing approvals.
Councils that have the highest growth in housing approvals will be prioritised for the funding. Picture: Unsplash
Councils can apply for up to two grants, each ranging from $150,000 to $2 million, and must fully match the funding they receive. The remaining $4 million will be allocated under Round 2.
To be eligible, grants must fund construction‑ready projects across three categories:
- Parks and sports fields — upgrading play spaces, walking, cycling and skating tracks, fitness areas, off‑leash dog areas, multi‑purpose courts, picnic shelters and BBQ areas
- Swim sites — upgrading spaces near waterways, beaches, foreshores and riverfronts
- Town squares — improving central community open spaces
Councils will need to begin work on funded projects by mid‑2027 and complete them by mid‑2029.
Grant applications for the Better Open Spaces Program close on 31 August 2026.
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