By Dr Kate Raynor and Lucas Lewit-Mendes
The Planning Amendment (Better Decisions Made Faster) Bill 2025 passed both houses of parliament last week. The amendment will streamline building approvals, including allowing low-risk building permits to be processed faster. Changes also include a provision that enables councils and state government to make the use or development of land conditional on the provision of an affordable housing contribution as long as:
- the relevant planning scheme identifies a need for affordable housing and
- the application exceeds a dwelling number or development value threshold.
This is a promising change that lays the groundwork for inclusionary zoning (IZ) – a land use planning intervention that either mandates or incentivises the delivery of social or affordable housing or in-lieu financial contributions as part of market rate housing development. This is something local councils, industry leaders, social housing and homelessness experts and researchers have been calling for for years.1
With the correct policy settings, IZ has proven an extremely effective approach to delivering affordable housing. In England, inclusionary zoning delivered 27,400 affordable homes in 2023-2024, accounting for 44% of all affordable homes built in England that year.2 Over 110,000 affordable homes have been produced in the US through IZ programs.3

