The ACT Government's requirement for the building industry to deliver affordable housing takes into account the constraints that impact on the industry's ability to deliver affordable products to a particular standard.
In light of this, the price thresholds for affordable housing are indexed annually The base price threshold was introduced in 2007 and has been indexed from 1 July each year. The most current indexing and all future indexing will be based on changes in the Australian Bureau of Statistics Wage Price Index.
Affordable housing definition
Homes are defined as affordable when a household spends no more than 30% of their gross income on mortgage payments (including both interest and capital repayments).
Mortgage payments are calculated using: the standard monthly variable interest rate series published by the Reserve Bank of Australia, averaged over the year; assumes 10% deposit on the full purchase price; and repayments over a 25 year loan contract.
Current ACT Price Thresholds
Different price thresholds apply based on net living area. Net living area is defined as:
Apartments: The area as measured to the outside face of external walls and to the centre line of party walls between both units and common areas.
Detached Houses: Area is measured to the outside face of externals walls including internal walls between the living areas and garage (but excluding the garage).
For the purpose of application of the policy the relevant indexed amount will apply as at the date of the contract for sale for each property.
2019-20 Three Tier Affordable Housing Thresholds
|Tier||Dwelling Size||Maximum Price|
|Tier 1 (T1)||Dwellings with a Net Living Area of up to 80m2||$330,000|
|Tier 2 (T2)||Dwellings with a Net Living Area of between 81 and 105m2||$381,000|
|Tier 3 (T3)||Dwellings with a Net Living Area of greater than 105m2||$434,000|