NSW Liberals abandon pro-development stance, clash with Labor over housing reforms

As New South Wales heads toward a March ballot on the Minns government’s planning reforms, Liberal MPs from inner-Sydney districts have broken from their earlier pro-YIMBY position. They argue that the proposed increase in housing supply is not matched by commitments for schools, transport and health services, labeling the plan "destructive" and lacking social licence. Figures such as Stephanie Di Pasqua and Matt Cross have publicly attacked the target of 60,000 new homes in Drummoyne and the use of state-significant development pathways.

Planning Minister Paul Scully countered that the Liberals are reverting to anti-housing NIMBYism, while a Labor strategist admitted housing may no longer be a winning election issue. The debate is set to shape campaigning in marginal seats like Drummoyne, Willoughby and Lane Cove, where both parties vie for voter support amid concerns over infrastructure and density.