Housing Legislation Amendment (National Definition of Affordable Housing)

5A Meaning of affordable housing (1) A residential dwelling is affordable housing if: (a) the dwelling is rented, or is available to be rented; and (b) the tenancy, or prospective tenancy, of the dwelling is managed by a registered community housing provider under an arrangement which ensures that, while the arrangement is in place, the conditions in subsections (2), (3), (5) and (6) of this section (to the extent that they apply) are satisfied in relation to the dwelling; and (c) a law of the Commonwealth, or a law of a State or Territory, requires that paragraphs (a) and (b) of this subs

Conditions that apply at the start of the tenancy (2) The condition in this subsection is that the dwelling must not be rented to a household unless, at the start of the tenancy: (a) the household is a key worker household; and (b) the household meets the lower income test for the dwelling. Note 1: See subsection (6) for conditions that apply when the income of the household changes during the period of the tenancy. Note 2: It does not matter whether the household continues to be a key worker household throughout the period of the tenancy, so long as the other conditions in this section a

Rent must be affordable (3) The condition in this subsection is that, in relation to any particular week, the rent for the dwelling for the week, for a particular household, must be no more than the affordable rent for the dwelling for that week for that household. (4) However, subsection (3) does not apply in relation to a particular week if satisfying the condition in subsection (6) requires that the rent for the dwelling for that week for the household be the market rent for the dwelling for the week.

Monitoring household income (5) The condition in this subsection is that the household to which the dwelling is rented must, at least once every 12 months, submit to the registered community housing provider a statement containing information sufficient to enable the provider to determine whether the household continues to meet the higher income test in relation to the dwelling. Changes in household income (6) The condition in this subsection is that if: (a) the dwelling is rented to a household, and the household met the lower income test for the dwelling at the start of the tenancy (see

1 Minister to harmonise definitions of affordable housing (1) The Housing Minister must take all reasonable steps to ensure, so far as is practicable: (a) that a single definition of affordable housing is used consistently across all Commonwealth legislation; and (b) that the same, single definition of affordable housing is used consistently by the Commonwealth, and by all Commonwealth entities, in all relevant contexts, including (but not limited to): (i) when formulating and communicating policies that relate to affordable housing; and (ii) when entering into arrangements (including arr

10A Loans and grants that relate to affordable housing (1) Subsection (2) applies in relation to a loan or grant made by Housing Australia to a State or Territory in the performance of Housing Australia’s financing function, if the loan or grant relates to affordable housing. (2) The terms and conditions of the loan or grant must require the State or Territory to ensure that, if any part of the loan or grant is used to support the activities of a registered community housing provider, the laws of the State or Territory prohibit the provider from using the term “affordable housing” (or any ot

2 Section 4 (at the end of the definition of housing affordability matter) Note: A matter may be likely to affect the affordability of housing (and so be a housing affordability matter) even if it doesn’t relate to affordable housing (as defined earlier in this section). For example, a measure that will raise purchase prices of houses, but only for houses that don’t qualify as affordable housing, may be likely to affect housing affordability, and so to be a housing affordability matter, even if it doesn’t affect the supply of affordable housing.

4 Application of amendments The amendments made by this Schedule apply in relation to loans, grants, guarantees or other financial assistance given by Housing Australia on or after the day when this Schedule commences.

The Housing Legislation Amendment (National Definition of Affordable Housing) Bill 2026 aims to establish a single Commonwealth definition of ‘affordable housing’ that can be applied consistently across Commonwealth housing finance legislation. The Bill amends the Housing Australia Act 2018, the Housing Australia Future Fund Act 2023, and the Federal Financial Relations Act 2009. The purpose of the Bill is to ensure that when housing is described as ‘affordable housing’ for the purposes of Commonwealth funding, investment or reporting, that housing meets an objective and enforceable affordab