Affordable housing would get one legal meaning
Right now "affordable housing" means different things in different programs. This bill would tie federal housing money to one test. The test is based on rent, income and key workers, such as nurses.
Official name: Housing Legislation Amendment (National Definition of Affordable Housing) Bill 2026
- Affordable rent would be the lower of 75 per cent of market rent, the normal rent for a home like it, or 30 per cent of the household's income.
- Only households with a key worker and a lower income could move in.
- The homes would have to be run by a signed-up community housing group and stay affordable forever.
- States getting federal money would have to stop housing groups calling homes affordable unless they pass the test.
Who it affects
- Key workers who rent: Homes paid for as affordable housing would be kept for households like theirs, at a capped rent.
- Community housing groups: They would run these homes and check tenants each year. They could not call homes affordable unless they pass the test.
- State and territory governments: Federal money for affordable housing would come with the new meaning attached.
- The federal Housing Minister: They would have to push for the one meaning across all federal laws. They would report on progress within two years.
Affordable housing has no definition
Affordable housing most often means rental homes for people who earn too much for social housing. Social housing is cheap housing for people on very low incomes. These renters still struggle to pay normal rents. Many are key workers. Rents are kept below the normal market price.
The bill's notes say federal law mostly does not define the term. Different programs use different tests, income limits and checks. The notes say homes are sometimes called affordable even when many renters on low and middle incomes cannot pay the rent.
The notes quote the National Housing Supply and Affordability Council, which gives the government advice. It says people starting a new lease now need 33 per cent of a typical household's income for rent. That is a record high.
They also quote the Australian Institute of Health and Welfare, which reports on the nation's health and welfare. It found 28 per cent of renters are under stress from rent. It found about 1.26 million households on low incomes are under stress from housing costs.
Nicolette Boele, an independent member of the House of Representatives, brought this bill. That is the lower house of Parliament. The notes say it does not create a new program or new money. It sets a test that federal money for affordable housing must meet.
One definition everywhere
Part 1 tells the federal Housing Minister to take all fair steps to use one meaning of affordable housing. It would apply across all federal laws on affordable rental housing. This includes deals with the states and territories.
The Minister would have to put out a report on progress within two years.
The new affordable housing test
Part 2 puts the meaning into the Housing Australia Act 2018. Housing Australia is the government body that pays for new homes.
A home would count as affordable housing only if a signed-up community housing group rents it out. These are not-for-profit groups that run rental homes. The deal must keep the home affordable forever. The notes say many projects today only stay affordable for 15 or 25 years.
The rent would be capped at the lower of two amounts. One is 75 per cent of market rent. The other is 30 per cent of the household's income before tax, divided by 52 to give a weekly figure.
Say a nurse's household earns $60,000 a year. The flat would normally rent for $700 a week. 75 per cent of $700 is $525. 30 per cent of $60,000 divided by 52 is about $346. So the rent would be about $346.
To move in, the household must include at least one key worker. Its income must also be in the lowest 40 per cent of households in its state or territory. The government would define key worker and income in detailed rules it writes later.
Yearly income checks
Tenants would give the housing group a statement every 12 months. It would show they still qualify.
The income limit for staying is higher than the limit for moving in. Tenants can stay until their income passes the middle point, where half of households earn more.
If a tenant no longer qualifies, they can stay in the home but must pay market rent. When they leave, the home must go to a new tenant who qualifies, at the affordable rent.
Stopping false affordable labels
Housing Australia gives money to states and territories for affordable housing. When it does, the state would have to ban housing groups from using the term unless the home passes the test. The notes call the problem "affordable-washing".
Part 3 adds the same rule to money paid from the Housing Australia Future Fund. That is the government's big fund for new housing.
Part 4 does the same for housing deals made under the Federal Financial Relations Act 2009. That law covers money the federal government pays the states.
None of these changes would touch deals already signed.
Start date
A government minister did not bring this bill. Ms Boele brought it into the House of Representatives on 14 September 2026. On the same day, she formally asked the House to vote on its main idea.
The House still has to debate it and vote. If it passes, the Senate, Parliament's second house, would then look at it. It would start the day after the Governor-General signs it into law. The Governor-General stands in for the King.
Its journey through Parliament
| 14 Sep 2026 | House of Representatives: Introduced and read a first time |
| 14 Sep 2026 | House of Representatives: Second reading moved |