Waverley Council has officially finalised an initiative aimed at addressing the most pressing issue facing its community today – the acute shortage of affordable housing.

In early 2019, the planning department announced that all councils were eligible to impose a condition of consent on new development for contributions to affordable housing. To do this, councils must have an affordable housing contributions scheme referenced in their local environmental plan.

Waverley Council prepared its affordable housing contributions scheme, which included a dual-contributions framework designed to capitalise on new developments. The new policy came into full force and effect on 16 August 2024.

The new policy mandates a 1% levy on the gross floor area of apartment buildings, independent living units, townhouses and shop-top housing developments. Additionally, for sites benefiting from planning uplift, a tailored contribution towards affordable housing will be calculated at the planning proposal assessment stage.

This policy is informed by the Waverley Local Housing Strategy. This policy document indicates that while the current planning controls of sites in Waverley LGA could meet housing supply targets, they did not address the affordability issue, often exacerbating it by reducing existing affordable housing stock. The strategy recommended a 1% – 3% contribution on all new residential developments and a 10% – 15% contribution on sites receiving uplift. Feasibility testing indicates a 1% levy as a viable starting point.

An additional 600 affordable dwellings are allegedly required by 2036 in Waverley to address the current proportion of households in rental stress.