City of Newcastle Unveils New Affordable Housing Contribution Scheme

The City of Newcastle has taken another step to address the region’s housing affordability crisis, with councillors endorsing a new scheme that will see developers contribute to the supply of affordable homes.

The Affordable Housing Contribution Scheme, approved at Tuesday night’s Council meeting, outlines how financial contributions will be collected from new developments to support the delivery of affordable rental housing across the city.

Executive Director of Planning and Environment, Michelle Bisson, said the initiative reflects the council’s commitment to taking action rather than just raising concerns.

“The Affordable Housing Contribution Scheme has been developed through extensive consultation and careful analysis to ensure it doesn’t affect development feasibility or the overall supply of new housing,” Ms Bisson said.

“It provides a clear, evidence-based approach that offers certainty for developers and recognises the importance of affordable housing for our city both now and into the future.”

The scheme was placed on public exhibition between November 2024 and February 2025, during which time residents and stakeholders were invited to provide feedback. Changes were made to improve how the policy will be applied and managed.

Councillor Elizabeth Adamczyk, who chairs the City’s Affordable Housing Working Party, said the new framework is a key part of a wider strategy to ensure more people have access to affordable rental homes.

“Many Newcastle households are already experiencing rental stress, and with the cost-of-living continuing to rise, the need for affordable housing has never been greater,” Cr Adamczyk said.

“Our goal is for 15 per cent of all housing in Newcastle to be affordable, and this scheme is one tool to help us reach that target. It supports a more inclusive and sustainable community.”

Affordable housing under the scheme will be targeted towards very low to moderate income households who are spending more than 30 per cent of their gross income on housing costs.

The planning proposal will now be sent to the NSW Department of Planning, Housing and Infrastructure for final approval. The contribution scheme will then be introduced in stages, allowing developers time to factor it into future land purchases and project planning.

The City of Newcastle says the policy will help address a growing shortfall in affordable housing and ensure development continues in a way that benefits the whole community.