The Baird government will seek multimillion-dollar reward payments from the Commonwealth for privatising social housing and public hospitals, NSW Treasurer Gladys Berejiklian has indicated.

A Productivity Commission draft report has identified six government services as suitable for national competition reform: social housing, public hospitals, palliative care, public dental services, remote Indigenous services and grant-based family and community services.

"We would welcome the introduction of competition payments": NSW Treasurer Gladys Berejiklian Credit:Louise Kennerley

A fortnight ago the Baird government announced it would seek private operators to redevelop five regional public hospitals.

Ms Berejiklian this week introduced legislation to establish a $1.1 billion Social and Affordable Housing Fund, to be used to encourage private and not-for-profit organisations to supply 3000 additional social housing dwellings in exchange for a 25-year tenancy management contract with the Baird government.