Govt Incentives for Developers

On December 14, 2023, the NSW Government introduced in-fill affordable housing reforms, creating compelling incentives for private developers to enhance the supply of affordable housing.

Key Highlights

Bonus Incentives:

Projects incorporating 10-15% of gross floor area (GFA) as affordable housing qualify for a floor space ratio (FSR) bonus of 20-30% and a height bonus of 20-30%. These bonuses are proportional to the affordable housing component, benefiting developers with increased flexibility.

Continued Opportunities:

Developers working with specified agencies and Community Housing Providers (CHPs) on sites with a maximum allowable FSR of 2:1 or lower can still leverage previous in-fill affordable housing bonuses. Now, they can choose a more favourable formula for calculating the FSR bonus, ensuring continued opportunities for growth.

Expanded Accessible Area:

The definition of an “accessible area” has been increased to 800m walking distance from a light rail or metro station. This expansion broadens potential development locations and aligns with transit-oriented development principles.

Applicability and Requirements:

Developers in specified land within the Six Cities Region and areas within 800 m walking distance of designated zones must allocate 10-15% of the development to affordable housing. The reforms include:

  • Built-form bonuses.
  • Non-discretionary development standards.
  • The affordable housing portion of the development is to remain affordable for 15 years and be managed by a registered community housing provider during this period.

Consideration of Local Character:

Consent authorities will now consider the characteristics of the local area or the desired future character for transitioning areas. This will promote a balanced approach to development that respects community identity.

These reforms provide property developers practical benefits, offering clear guidelines, incentives, and continued opportunities to contribute to affordable housing in specified regions.

For affordable housing solutions tailored to your development, contact the HomeGround Sydney team on 0413 817 380 or via email at

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