Chapter 2, Part 1 of the Housing SEPP describes very low income households, low income households or moderate income households as:

• 1. households that have a gross income within the following ranges of percentages of the median household income for Greater Sydney or the Rest of NSW:

1. i. very low income household—less than 50%,
2. ii. low income household—50–less than 80%,
3. iii. moderate income household—80–120%, and

• 2. typically priced so rent is less than 30% of gross household income.

or,

• 3. the household

1. i. is eligible to occupy rental accommodation under the National Rental Affordability Scheme, and
2. ii. pays no more rent than the rent that would be charged if the household were to occupy rental accommodation under the Scheme.

The NSW State Environmental Planning Policy (Housing) 2021 includes reforms to increase the delivery of more Affordable Housing. (Link: https://www.planning.nsw.gov.au/policy-and-legislation/housing/housing-sepp.

The Housing SEPP requires that all affordable housing must be managed in accordance with the NSW Affordable Housing Ministerial Guidelines. [add link: NSW Affordable Housing Ministerial Guidelines | NSW Government]

The SEPP also mandates that developers must appoint a registered manager to manage any affordable housing built using its incentives, such as FSR and height bonuses. These homes must be managed as affordable housing for at least 15 years, with affordability conditions registered on title. 

A new category of Affordable Housing Manager (AHM) is being introduced in NSW. In addition to registered Community Housing Providers, AHMs will also be able to manage affordable housing but will need to comply with the same eligibility criteria and assessment for new tenants, rent setting and reporting obligations.

A Commonwealth funding program, “The Housing Australia Future Fund (HAFF)” was established on 1 November 2023 by the Housing Australia Future Fund Act 2023. The HAFF is s dedicated investment vehicle to provide additional funding to support and increase social and affordable housing, as well as other acute housing needs, including, but not limited to, the particular needs of Indigenous communities and housing services for women, children and veterans.

For affordable housing funded through the Housing Australia Future Fund (HAFF) Facility, there are different income eligibility thresholds that apply to tenants living in those properties. 

The funding was allocated through three tender rounds.  The final Round 3 opened in early 2026 with the Housing Partner/ enabler stream reaching full allocation.  Housing Australia has not announced any further rounds of funding.

These guidelines outline the policy and legislative requirements for Affordable Housing under state planning. Specifically they set the day to day rules for eligibility, rent setting and asset management, including providing guidance on the maximum rents that can be charged. (Link: NSW Affordable Housing Ministerial Guidelines | NSW Government}

Build to Rent (BTR) affordable dwellings must also comply with relevant affordable housing policies imposed by the Environmental Planning and Assessment Act and, where relevant, Housing Australia’s income eligibility rules for HAFF funded social and affordable housing dwellings and the ATO’s rules relating to income eligibility thresholds and rent setting for affordable housing in the event that Commonwealth tax incentives for BTR are accessed.

Housing stress is a financial condition where a household’s housing costs are so high they struggle to afford other basic essentials like food, medicine and heating.

A household is considered to be in housing stress if their total household income falls within the bottom 40% of household incomes nationally and where they spend more than 30% of their gross household income on housing costs, such as rent.