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Inclusionary zoning will unlock much needed funding for social and affordable housing


The Victorian Government’s plan to unlock more funding for social and housing affordability through a small levy on approved new property developments will help deliver 1,700 new homes a year for those who’ve been left behind in the rental market.

Council to Homeless Persons CEO Jenny Smith welcomed the new Social and Affordable Housing Contribution (SAHC) that will raise $800 million annually, all of which will go directly to housing Victorians who need it most.

“The new Social and Affordable Housing Contribution is a fantastic initiative that will deliver homes for those who are being left behind by our runaway rental market,” said Ms Smith.

“The affordability of rentals in Victoria is getting worse, with 46.7% of Victorians receiving Commonwealth Rent Assistance paying more than 30% of their income in rent in 2021, up from 39.5% in 2019.

“Lack of affordable rentals means homelessness services are increasingly overwhelmed with demand. In 2020-21, 105,500 people received homelessness help, but everyday services turned away 133 people because of a lack of staff and housing options to support them.

‘’Every new home the levy builds will make a world of difference to a Victorian in need of the stability and security of housing.”

The new levy comes into effect in July 2024, and will require developers of developments with three dwellings or more and three or more lot subdivisions to contribute 1.75 per cent of the as-if-complete project value to the Social Housing Growth

“The Victorian government is leading the way in showing how inclusionary zoning, whether it’s through levies or designating a portion of new builds to social housing, can work and deliver a fairer housing and rental market.”

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