The Hon Paul Scully MP
Minister for Planning and Public Spaces
Ref: MDPE26/2701
Ms Helen Minnican
Clerk of the Legislative Assembly
Parliament House
Macquarie Street
Sydney NSW 2000
LAClerk@parliament.nsw.gov.au
Table.LA@parliament.nsw.gov.au
Dear Ms Minnican
Thank you for forwarding the petition tabled in the Legislative Assembly on 4 August 2026 by Mr Alex Greenwich MP, Member for Sydney, about affordable housing.
The in-fill affordable housing bonus scheme in the State Environmental Planning Policy (Housing) 2021 (Housing SEPP) is one of several pathways to deliver increased affordable housing supply. The scheme offers floor space ratio and building height bonuses between 20 and 30 per cent for residential developments that dedicate at least 10 to 15 per cent of gross floor area to affordable housing for 15 years. It also includes a State significant pathway for projects with a capital investment value exceeding $75 million in Greater Sydney and $30 million elsewhere.
These pathways each play their part and are intended to work together to deliver improved affordable housing outcomes for NSW, both in the short and the long term.
Importantly, all affordable housing delivered under both pathways must be managed by registered community housing providers and allocated to households on very low, low, or moderate incomes in line with the NSW Affordable Housing Ministerial Guidelines. The Guidelines set out requirements for managing affordable housing, including tenant eligibility and rent-setting.
Responsibility for the Guidelines sits within the portfolio of the Hon Rose Jackson MLC, Minister for Homes. I understand that Homes NSW is currently reviewing the Guidelines. The petitioners can find the current Guidelines at:
www.nsw.gov.au/departments-and-agencies/homes-nsw/social-housing-resources/nsw-affordable-housing-ministerial-guidelines
The Infill Affordable Housing pathway has facilitated significant housing delivery, with 64 SEARs issued, 44 SSD applications lodged, and 75 SSDs approved, resulting in 42,181 homes, including 9,982 affordable homes.
The NSW Government is aware of the impact of the loss of existing low-cost rental housing and the need to retain this category, which plays an important role for people on lower incomes seeking housing in the private market.
Part 3 of the Housing SEPP includes provisions to encourage retention and mitigate the loss of existing affordable housing. These provisions enable councils to impose a levy on development that will result in the loss of existing low-cost rental housing due to demolition, alteration, and or change of use.
The recently finalised Sydney Plan includes an action requiring all councils in Sydney to implement an affordable housing contribution scheme. Affordable housing contribution schemes enable councils to levy monetary contributions or to seek dedicated affordable housing in new developments. Affordable housing delivered through these schemes must remain as affordable in perpetuity. The petitioners can view the finalised Sydney Plan at:
www.planning.nsw.gov.au/plans-in-nsw/plans-by-region/the-sydney-plan
For more information on the NSW Government’s policies and proposed reforms in relation to affordable housing, the petitioners can visit:
www.planning.nsw.gov.au/the-planning-system/housing/housing-sepp
Matters such as infrastructure, amenity, and heritage impacts are typically considered as part of development assessment by the relevant consent authority. The management of these matters through conditions of consent is not considered to be necessary.
Thank you for bringing this to my attention.
Yours sincerely
Paul Scully MP
Minister for Planning and Public Spaces
52 Martin Place Sydney NSW 2000
GPO Box 5341 Sydney NSW 2001
02 7225 6080
nsw.gov.au/ministerscully