NSW Treasurer Daniel Mookhey has called on his federal counterpart to fast track when states can receive financial incentives to speed up the building of hundreds of thousands of homes.

Under the National Housing Accords, states and territories have been tasked with delivering a combined 1.2m homes over five years, with federal Treasurer Jim Chalmers offering up $3bn in sweeteners that will be paid out from 2028.

NSW will need to build a total of 375,000 homes between July 1, 2024 to June 30, 2029 in order to receive the incentive, which equates to 75,000 homes per year.

During budget estimates on Friday, Mr Mookhey said that while he welcomed Dr Chalmers putting “money on the table,” the plan failed to support states in executing the housing targets

“As often is the case with the Commonwealth, their intention (doesn’t) necessarily follow through with execution and I think they will execute their policy a lot better by taking up my suggestion to pay the payments earlier,” he said.

He said the creation of housing is largely dependent on water, road, electricity and broadband infrastructure, which would be aided by federal funding.

“I make the point to the Commonwealth, and I make the point today, should they give us that money earlier, we’re in a better position to deliver the housing faster.”

Earlier this year, NSW Premier Chris Minns conceded the state would not build 75,000 this year, with Planning Minister Paul Scully unable to state how many homes NSW could deliver after the government’s raft of new reforms begin.

Since winning government in March last year, the government has bought in planning control changes under the Transport Oriented Development scheme to make it easier for higher density units to be built within 400m of 31 metro and rail stations.

Under the plan, eight priority high growth areas have also been tapped across greater Sydney, with rezoning laws tapped to build up to 47,800 new homes over 15 years.

Mookhey to seek greater federal funding on health, education, childcare

Mr Mookhey also said he would go into negotiations with the federal government to increase their contribution to health, education and childcare, amid concerns of rising state debt.

On Friday, credit rating agency S & P Global Ratings said an accumulated record state debts of $600bn was increasing inflationary pressures, despite the federal budget forecasting a slim surplus of $1.1bn in the 2023-24 financial year.

Mr Mookhey said conversations would continue this year, and flagged two priorities.

He called on the Commonwealth to meet their commitment to fund the state’s hospital with a 45 per cent, and eventually a 50 per cent split.

With funding currently at a 39/61 per cent split, Mr Mookhey said an increase of 6 per cent would allow the state to hire an “almost unprecedented” number of nurses, cleaners and allied health workers.

Mr Mookhey said he would also call for increased federal education funding of about 25 cents for every dollar the state spent on public schools.

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By Rahul

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