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Apr 16, 2013

NSW Government cuts funding for affordable housing

The white paper into NSW planning system, released today, proposes to ban developer contributions for affordable housing, a key funding source used by a number NSW Councils to support low-income and vulnerable families in maintaining family and other supports in their local communities.

“As Australia’s largest city, Sydney bears much of the pressure from population growth. Infrastructure building has not kept up, including essential community infrastructure such as social housing.” said Joel Pringle, Campaign Manager for Australians for Affordable Housing.

“Rents in Sydney have increased by almost 26% in the five years to September 2012, to the point where median rents for an apartment are now $460 a week. That’s well above inflation. It costs an extra $100 to rent an apartment in Sydney than it does to rent a whole house in Melbourne.”

“Potential first home buyers are still stuck in rent, struggling to save a deposit. First home buyers continue to struggle to get a foot into the NSW housing market. Average mortgage repayments are taking up a greater percentage of household income, now 33.7% in 2011 compared to 25.6% in 2010.”

“And yet the NSW Government thinks this is the time to rip out a funding stream currently used to build affordable homes.”

“This proposal would exacerbate the housing crisis in NSW, not only in the cities but also in regional areas under housing stress, for example the mining towns. If enacted, it will directly impact on the most vulnerable families in our community.”

“These funds directly assist families in most need. Modest improvements in housing supply from these reforms will not address the hardship faced by these families.”

Australians for Affordable Housing is a coalition of national housing, welfare and community sector organisations to highlight the problem of housing affordability in Australia. For more information visit

For enquiries, case studies and interviews contact Joel Pringle, 0427 563 989

Follow AAH on Facebook and Twitter: @housingstressed

  • Ant

    Yes, I don’t really see how it works…’Affordable housing contributions will not
    be part of the new contributions system but will be fully integrated in strategic planning. This means that affordable housing will be addressed through strategic planning and policies (such as the NSW Housing Policy),
    rather than through individual development consents’ (White Paper, p168).

    So does this mean that contributions for AH will primarily be replaced by governmental grants and funding?


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