At Shelter NSW we always take up the opportunity to make a pre-budget submission – setting out our key priorities and recommendations for high-impact investments. 

Our last was in March 2024, ahead of the June budget announcements for 2024/25. You will also recall our relief at the announcement by the NSW Government of a multi-billion dollar commitment to a large social housing construction, upgrade and maintenance program as well as a substantial increase to homelessness services. 

In this bulletin we are sharing the submission we made to the NSW Treasury in December for the 2025/26 budget (noting the unexpectedly early deadline). 

You might notice the absence of our usual ‘big ask’ for a large investment in additional social housing. This is deliberate. We have been advised by Treasury and Homes NSW that the June 2024 announcements were intentionally multi-year commitments. In other words – the kitty is bare. 

We have not shied away, however, from restating our ambitious advocacy goal; social housing needs to be quickly restored to its safety net of 5% of all housing in NSW and to 10% by 2040. 

An upcoming Federal Election provides a bigger arena for us to make our pitches to, advocating for Commonwealth leadership and provision of adequate funding to NSW to address decades of under-investment in social and affordable housing. 

Set out below is the summary of our key asks for the NSW Budget 2025-26. 

We’ve called for a set of targeted and high-impact investments to address the most acute current needs and prevent the further worsening of homelessness and serious financial housing stress currently being experienced by low-income people and especially renters. Our submission should be read as an extension of our March 2024 submission.  

Note especially a new detailed recommendation for a large social housing accessibility retrofit program. We know that there are many people either currently living in or (officially) waiting for social housing that can’t be allocated dwellings because of the lack of appropriate stock. This impacts a lot of people whether they be ageing, living with chronic health condition, or disability. 

Targeted Shelter NSW Budget Asks for 2025-26: 

1. $250 million social housing accessibility retrofit program to develop a genuine alternative to the private rental market for low-income people requiring accessible homes (currently living in or approved but waiting for social housing).
2. Increase funding to Specialist Homelessness Services (SHS) by 30% over the next two years so that services can meet the growing urgent but unmet demand.  
3. Invest in five new ‘shovel-ready’ forty-unit Youth Foyers in Western Sydney and key regional NSW towns to support young people to access an integrated program of housing, education and employment support. Requires total $80m to build and $11m p.a. operating costs. 
4. Support lower income households to cope with rising energy costs and adapt to climate change. Commit a further $150 million over 2 years for energy efficiency upgrades and electrification of low performing social housing properties. This includes upgrades to inefficient fixtures (water, heating and cooling) and improving the thermal performance of existing social housing stock.  
5. Invest in services to support vulnerable renters including older people to successfully navigate and compete in the private rental system: 
   
   >> establish a specialist older person’s housing information and support service that comprises both an early intervention and crisis response, similar to the HAAG Home at Last model in Victoria. Set up and operating costs would be $5.6m over 3 years.>> increase the funding to Tenants Advice and Advocacy Services (general and specialist Aboriginal services) to $24.78m p.a. to match the growth of the renting population, complexity and stress and to support the implementation of the NSW Government’s reform of tenancy laws.