Victoria’s State Development Facilitation Program (DFP) and New South Wales’ State Significant Development (SSD) program are now embedded in the planning system as pathways for large residential development approval. To gain access, landowners need to commit to affordable housing requirements.
Whilst these pathways are primarily about supporting new supply, they also reflect the evidence that supply won’t deliver dedicated social and affordable housing for households unable to afford market prices.
The DPF and SSD programs require applicant to commit to make either an on-site or a monetary contribution towards affordable housing.
These programs reflect that the planning system has a core role in supporting housing supply that responds to the wide needs in the community – and that without intervention, supply alone will not ensure housing for lower to moderate income households is realised.
Since 2017 and prior to DFP in Victoria, Affordable Development Outcomes worked with landowners and developers to determine optimal responses and delivery strategies as part of voluntary planning agreements sought by local councils.
Our strategies had to respond to a very broad framework of what affordable housing could entail, with a lack of consistency and sufficiently resourced negotiation process often meaning drawn-out and occasionally challenged requirements.
Since the introduction of the DFP and the expansion of the SSD, developers of large-scale projects have opted to apply for planning scheme amendments and permits through the State. The requirement for affordable housing as part of accessing these programs has become the norm. Strategies and reports are still required, but the base expectation is set with some flexibility in how delivery occurs.
Affordable Development Outcomes understands affordable housing. Our Services including working with landowners to determine the right strategy for your site and circumstances.
The Victorian Planning Amendment (Better Decisions Made Faster) Act 2026 is taking this to the next phase – establishing a clear regulatory framework for affordable housing contributions as part of land-use planning and development.
The SSD and DFP programs have proven that when the system is clear and the requirement viable, planning scheme contributions towards increasing social and affordable housing can be achieved without the sky falling in. Affordable housing is also being embedded within institutionally owned build-to-rent projects, reflecting international examples of multi-family housing.
The next phase of regulation is a significant opportunity to build on the learnings of these programs and ensure that planning for housing supply considers and responds to the needs of all members of the community.
Contact Kate to find out how we can work with you to devise affordable housing strategies that suit your site and support successful planning approval and delivery.
