$2 billion national upzoning incentive fund welcomed by YIMBY groups

All states should be required to deliver a national townhouse code

The most commonsense reform for states to sign up to is a National Townhouse Code, as first advanced in our Brick Book (opens in a new tab), as well as in the Grattan Institute’s More Homes, Better Cities (opens in a new tab).

This would set a nationwide ‘code-assessable’ framework for three-storey townhouse development, setting a minimum residential density across all established areas.

Nationwide rules will create efficiencies, and enable more homes to be built faster in places where people want to live.

National upzoning incentives in line with our election briefing, The Brick Book

This new announcement from the Commonwealth reflects several recommendations from our 2025 election policy guide, The Brick Book (opens in a new tab), which included calls for the Feds to:

• Pay the states to fix planning bottlenecks
• Create a targeted infrastructure feasibility fund

This new $2 billion announcement represents a synthesis of our recommendations. This will help states deliver meaningful reform—and more homes where people want to live.

We welcome the Commonwealth’s renewed interest in major cities

By focusing 75% of the incentive funds on our established metropolitan areas, the Commonwealth shows an admirable interest in the engines of our nation’s economy: our major cities.

80% of our economic activity takes place on less than 1% of our land; to grow Australian productivity, it makes sense that these funds be used to bolster our nation’s strongest labour markets.

NOTE: specific state-by-state recommendations and quotes available on-request.