A proposal that could have led to a levy of $15,000 to $20,000 being placed on new apartments in upzoned areas in Sutherland Shire has been blocked.
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Under the plan, the money raised by the levy would have been used to fund affordable rental housing for low income earners.
Sutherland Shire Council debated the measure at its last meeting, with Labor councillors supporting a staff recommendation to ask the state government to provide the opportunity for the shire to join the scheme.
However, Liberal councillors succeeded in having further consideration deferred until the next council term.
Council staff advised the meeting a five per cent levy would add $15,000 to $20,000 to the cost of a new apartment.
Labor councillor Diedree Steinwall, said “We all know there is a crisis in affordable housing, not just in the shire but in all council areas”.
“Even if we increase the amount of accommodation by just five per cent, it is better than nothing.
“To sit back and do nothing would be quite tragic.
“If we look at the Kirrawee brick pit development, there are 808 units and not one is affordable rental housing.”
Liberal Tom Croucher said, “The motion is aimed at people renting but I don’t think it is good leadership if we help on e group and disadvantage another group”.
Former Liberal mayor Kent Johns said the proposed levy was premature because the full effects of the latest LEP were yet to be seen.
He said there was already an incentive scheme that allowed variations to the LEP for developers who included affordable housing in projects.
The proposal stemmed from a state government proposal to amend State Environmental Planning Policy 70, Affordable Housing (SEPP70).
This policy allows two councils, City of Sydney and Willoughby, to place a levy on developments in precincts that have been upzoned.
The levy is similar to a Section 94, which helps pay for public amenities and services as a consequence of development.
However, with SEPP70, councils channel the money into affordable housing, which is usually managed by a not-for- profit community housing provider.
The government proposes to include five more councils in the policy at their request.
Sutherland Shire Council staff recommended a submission that would allow the policy to be extended to the shire.
“Declining housing affordability affects the ability to achieve a diverse local population which ultimately affects the ability of business to attract key workers on low to moderate incomes,” the council report.
“Council currently has very little ability to facilitate the delivery of affordable housing.”
The report said, in June, 2016, the median rent for an apartment in the shire was $470, which was 7.8 per cent lower than the median for Greater Sydney.
In 2011, it was 11.1 per cent lower than the median for Greater Sydney.
“The statistics highlight that there are significant barriers to accessing housing for very low, low and moderate income earners in Sutherland Shire,” the report said.
“This is significant…as the ABS 2016 census showed approximately one third of shire households were very low to low income households.”