For the purposes of the Planning and Environment Act 1987, households are defined as being very low income households if their income is 50 percent or less of the median household income of Greater Melbourne or the Rest of Victoria, depending on where they live.

Households whose income is between 50 to 80 percent of the median household income of Greater Melbourne or the Rest of Victoria are defined as low income households.

Households whose income is between 80 and 120 percent of Greater Melbourne or the Rest of Victoria are defined as moderate income households.

The income ranges for affordable housing, that is not social housing, are based on Australian Bureau of Statistics, 2016 Census of Population and Housing median weekly household income. The income ranges will be adjusted annually using the Housing Group of the Consumer Price Index for the December Quarter published by the Australian Bureau of Statistics. The income ranges will be rebased after each Census of Population of Housing

The methodology for creating the income ranges in the base year (2016) is shown below. To access the current income ranges, refer to Resources section for a copy of the Governor in Council Order.

Step 1. The base income is calculated by converting the 2016 Census of Population and Housing median weekly household income for Greater Melbourne and Rest of Victoria into an annual income.

 

Median weekly household income

Median annual household income

Greater Melbourne

$1,542

$80,492

Rest of Victoria

$1,124

$58,673

Step 2. The ratios are applied to the base incomes to form the base income groups.

Ratios

Greater Melbourne

Rest of Victoria

Very Low

50%

50%

Low

80%

80%

Moderate

120%

120%

Income groups

Greater Melbourne

Rest of Victoria

Very Low

$40,246.20

$29,336.40

Low

$64,393.92

$46,938.24

Moderate

$96,590.88

$70,407.36

Step 3. Apply demographic weights to the base income groups to form household types.

Demographic weights

 

Single Adult

0.6

Additional Adult

0.3

Additional Child

0.18

Household types

 

Greater Melbourne

Rest of Victoria

Very Low Income

Single Adult Household

$24,147.72

$17,601.84

Couple Household*

$36,221.58

$26,402.76

Family Household^

$50,710.21

$36,963.86

Low Income

Single Adult Household

$38,636.35

$28,162.94

Couple Adult Household

$57,954.53

$42,244.42

Family Household*

$81,136.34

$59,142.18

Moderate Income

Single Adult Household

$57,954.53

$42,244.42

Couple Adult Household

$86,931.79

$63,366.62

Family Household*

$121,704.51

$88,713.27

*A couple household is any household with two adults and no dependents.

^A family household is any household with one or two parents and one or more dependent children.

Step 4. Round the household types to the nearest $10

Household incomes rounded to nearest $10

 

Greater Melbourne

Rest of Victoria

Very Low Income

Single Adult Household

$24,150

$17,600

Couple Household

$36,220

$26,400

Family Household

$50,710

$36,960

Low Income

Single Adult Household

$38,640

$28,160

Couple Adult Household

$57,950

$42,240

Family Household*

$81,140

$59,140

Moderate Income

Single Adult Household

$57,950

$42,240

Couple Adult Household

$86,930

$63,370

Family Household*

$121,700

$88,710

Step 5. Express the rounded household types as income ranges. Single Adult Household

Income ranges

 

Greater Melbourne

Rest of Victoria

Very Low Income

Single Adult Household

Up to $24,150

Up to $17,600

Couple Household

Up to $36,220

Up to $26,400

Family Household

Up to $50,710

Up to $36,960

Low Income

Single Adult Household

$24,151 to $38,640

$17,601 to $28,160

Couple Adult Household

$36,221 to $57,950

$26,401 to $42,240

Family Household*

$50,711 to $81,140

$36,961 to $59,140

Moderate Income

$38,641 to $57,950

$28,161 to $42,240

 

Couple Adult Household

$57,951 to $86,930

$42,241 to $63,370

Family Household*

$81,141 to $121,700

$59,141 to $88,710

Step 6. The indexation measure is applied and the incomes are rounded to the nearest $10.

For information on income limits and eligibility for social housing refer to housing.vic.gov.au

The Order will be reviewed annually in February with the intention to release the revised income ranges in March. The income ranges will be adjusted using the Housing Group of the Consumer Price Index for the December Quarter which is published by the Australian Bureau of Statistics in February. The income ranges will be rebased after each Census of Population of Housing.

The income ranges in the Order will be adjusted annually using the Housing Group of the Consumer Price Index for the December Quarter published by the Australian Bureau of Statistics the following February. The income ranges will be rebased after each Census of Population of Housing.

The organisation that manages the affordable housing (or facilitates a purchase in a shared equity scheme) will be responsible for allocating the dwellings to households accessing the affordable housing that are very low, low, or moderate-income households as defined in the Order.

If the dwellings are social housing, allocation will be subject to the regulations governing their allocation. Information regarding social housing is available at housing.vic.gov.au

Whoever is managing the rental or sale of the properties will need to have a process in place to make sure the property is allocated or sold to an eligible household. In making the decision on allocation they should have regard to the Order and to the Specified Matters Under Section 3AA(2) – Ministerial Notice. If the dwellings are social housing, allocation will be subject to the regulations governing their allocation.

If the dwellings are social housing, allocation will be subject to the regulations governing their allocation. Information regarding social housing is available at housing.vic.gov.au

Page last updated: 01/06/2018