Housing as economic policy: Business Illawarra releases its blueprint for growth
Home shortage now putting jobs at risk, says peak body
Business Illawarra’s latest policy platform, Homes for Workers, marks a significant shift in regional advocacy, positioning housing not merely as a social issue but as “core economic policy” essential for business growth and workforce attraction.
The region’s peak business organisation argues the current housing shortage is undermining the region’s productivity and ability to deliver essential services.
The policy was released as government, industry and regional leaders attend the BI-backed Future of Housing forum in Wollongong today.
The organisation’s report identifies 11 “fast track game changers” - critical locations where coordinated government action can unlock thousands of homes. The Illawarra sits at the heart of this strategy.
Significant projects include the West Dapto release area, which has the potential for 20,000 new homes but requires an estimated $400 million in critical road and rail infrastructure, including the Western Ring Road. Other key Illawarra priorities include the Shellharbour Hospital Precinct (5000+ homes), Calderwood (3500 homes), and the Gwynneville social housing precinct, designed to provide affordable living for key workers near Wollongong’s CBD and hospital.
Director of Business Illawarra, Coralie McCarthy, said housing availability has become one of the most significant barriers to workforce recruitment, retention and regional economic growth.
“Workers need somewhere to live. Without housing, businesses can’t grow — it’s that simple,” Ms McCarthy said.
The advocacy extends across the broader economic corridor to the Shoalhaven and Southern Highlands. In the Shoalhaven, the report calls for a “Gosford-style” planning overhaul of the Nowra CBD to coordinate state investment and accelerate rezoning.
To the south, fast-tracking infill and greenfield rezonings in Milton-Ulladulla is deemed vital for regional jobs. In the Southern Highlands, the platform prioritises the Wilton Housing Release Area (4700 homes) and essential sewer treatment plant upgrades in Mittagong and Colo Vale to support 3000+ new dwellings.
A central thesis of the report is that “enabling infrastructure is the biggest barrier to housing delivery”. Business Illawarra (BI) contends that even when land is zoned, development stalls without timely investment in roads, water, power, and digital connectivity. BI proposes a multi-year, cross-government infrastructure program to restore investment certainty.
Beyond bricks and mortar, the report advocates for systemic reforms to boost workforce participation. It argues that “housing needs childcare,” calling for childcare to be recognised and funded as critical economic infrastructure co-located within new housing developments. Other recommendations include:
• Modernising manufacturing: Updating planning controls to embrace modular and prefabricated construction.
• Land tax reform: Adjusting thresholds to protect small, local investors and retain existing rental stock.
• Seniors housing: Removing red tape and stamp duty for retirees to encourage downsizing and free up family homes.
By aligning transport investment with housing growth and leveraging government-owned land for worker housing, Business Illawarra provides a roadmap to ensure the region remains a competitive place to do business.
The full report is available here: Homes For Workers Policy 2026 Report
Now, for the rest of the week …
BlueScope targets $3 returns amid ‘best and final’ $32bn bid
It was another hectic week for BlueScope Steel, having received a definitive “best and final” takeover proposal from a consortium led by Seven Group Holding Limited and US-based Steel Dynamics, and delivered its half-year report.
The $32.35 per share cash offer would see SGH acquire the group before on-selling BlueScope’s North American assets to its partner.
This unsolicited bid arrives at a critical juncture as the steelmaker reports a 118% surge in half-year net profit to $391 million, signalling a major “inflection point” for the company.
Managing director Tania Archibald confirmed as the company’s $2 billion global investment program nears completion, it is poised to deliver materially stronger cash flows. For the Illawarra, the operational focus remains on the final stages of the No.6 Blast Furnace reline and Plate Mill upgrades at Port Kembla. The board’s confidence is reflected in a plan to return $3 per share to shareholders in 2026, including a $1 special dividend and an increased ordinary dividend target.
The regional economic footprint is also evolving through BlueScope’s “land value realisation” strategy. The company has secured a $76 million deal for 33 hectares at West Dapto, part of its vast 1200-hectare surplus portfolio. Whether the company remains independent or moves under new ownership, Port Kembla continues to be the bedrock of the group’s Australian resilience and a vital hub for regional industrial growth.
NSW unlocks workforce boost for early learning
The NSW Government has launched Round 1 of the 2026 Early Childhood Education and Care (ECEC) Scholarship Program to combat persistent workforce shortages. Part of a broader $27 million investment, the initiative targets both aspiring educators and existing professionals in regions like the Illawarra.
Funding covers various qualification levels, including Certificate III, Diplomas, and full Early Childhood Teaching degrees.
Eligible applicants must reside in NSW and commit to working within the state’s ECEC sector upon graduation. This program serves as a critical lever for local childcare providers struggling to meet rising demand.
For eligibility requirements and detailed information, head here.
Hospital rises from greenfield site
Major groundworks at the new Shellharbour Hospital have been completed, with concrete slabs now poured and structural works progressing steadily on site.
Construction has also started on the multi-storey car park, while work is underway on Geera Gardens - a green space co-created with local Aboriginal groups to support wellbeing for staff, patients, carers and the wider community.
The new Shellharbour Hospital is part of the more than $780 million New Shellharbour Hospital and Integrated Services Project, funded by the NSW and Australian governments. Main works construction of the new hospital started in 2024 and is expected to be completed in 2027.
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