1. Understand when retaining walls are required
A retaining wall is required wherever the design creates a level difference between two adjacent areas that cannot stand as an unsupported soil bank.
Standard practice: soil banks steeper than roughly 1 in 3 (rise to run) typically need retaining. On Adelaide clay soils, banks steeper than 1 in 4 often need retaining because clay lacks the cohesion of some other soil types.
Split-level designs by definition create level differences. Some are absorbed within the building structure (integrated retaining walls); others sit outside the building as freestanding retaining walls in the garden.
The cost of retaining scales with height and length. A wall retaining 1 metre of soil costs significantly less per linear metre than a wall retaining 3 metres. Design the split levels to minimise the total retaining requirement.