In-Fill Affordable Housing Reforms Offer Incentive Bonuses

In-fill affordable housing offers an opportunity for new and affordable housing within the ‘Six Cities Region’ of New South Wales. On 14 December 2023, after stakeholder consultations and policy proposals, the NSW government implemented in-fill affordable housing incentive bonuses to prompt private developers to deliver more affordable housing in the current market. The reforms and subsequent bonuses are scaled according to the size of the property which can range up to a maximum 30% uplift if a minimum of 15% of the gross floor area is ‘affordable housing’. To be eligible the property must be in an ‘accessible area’ specifically within 800m walking distance of transport hubs. The bonuses are also available outside of the ‘Six Cities Region’ however certain requirements must be upheld in relation to distances between specific land zones. See the NSW Planning Portal for specific requirements and provisions.

In conjunction with the new reforms and to support the delivery of bonuses, new State Significant Development (SSD) approval pathways have been introduced. The SSD approval pathway requires that, to be eligible for the In-fill housing bonuses, residential developments must have a capital investment value of more than $75 million within Greater Sydney. Furthermore, developments must be permitted under an environmental planning instrument to access the SSD approval pathway. For more information on the provisions of the In-fill affordable housing reforms visit the NSW Planning Portal.