Supermarket giant Woolworths stands accused of exploiting a national affordable housing initiative, using a fast-track approval loophole to push through at least ten residential developments across Australia. Critics have lambasted the retailer for plans that include separate entrances for affordable housing tenants, a feature dubbed a 'poor door'.
The Scheme and the Alleged Loophole
Under the 2022 National Housing Accord, state governments in New South Wales and Victoria introduced a streamlined approval process for housing projects. The scheme was designed to help fulfil a federal pledge to build 40,000 social and affordable rental homes by 2029. Developers can apply directly to the state for fast-tracked approval if they allocate 10 per cent of a new build to affordable rental housing.
Woolworths, in its push into the mixed-use property market, has reportedly used this provision to seek approval for developments that had previously been blocked by local councils and even state planning tribunals. The projects typically combine a supermarket with apartments.
'Poor Door' Controversy in Melbourne Development
A prime example is a revised proposal for a site in Glen Iris, Melbourne. Initially rejected by Stonnington Council in 2020 and later by the Victorian Civil and Administrative Tribunal (VCAT) in 2022, the plan was for a five-storey complex with 58 units and a supermarket.
Woolworths submitted a revised application in June 2023 under the Development Facilitation Program. The new design, approved by Victorian Planning Minister Sonya Kilkenny in October, added a separate three-storey annex building containing six affordable rental units with a distinct entrance. Renderings show the main building towering over the annex.
Dr Michael Fotheringham, Managing Director of the Australian Housing and Urban Research Institute, compared the move to controversial 'poor door' developments in London and New York. "It will have very clear visual signals to everyone in the community that this is lesser," he told the ABC. "Using that to get fast-track approval seems exploitative. It's clearly not the intent of these schemes."
Disparities and Defence
The plans highlight further disparities. Only three car spaces are allocated for the six affordable units (one per two units), while approximately 120 spaces are planned for the 58 units in the main building (about two per unit).
Planning permits require a community housing charity to own or manage the annex once built. Developer Time and Place, Woolworths' partner, defended the separation, stating that feedback from housing providers indicated that placing affordable units in the main building would incur higher strata fees and insurance costs. A spokesperson said separating the titles kept costs down for the eventual housing provider.
The approval by the planning minister is final and cannot be appealed through VCAT. Woolworths' revised Glen Iris plan did address some earlier concerns by lowering the building height and reducing unit numbers from 80 to 58.
