Low-Rise Housing and Targeted Assessment: Understanding the NSW Government’s Proposed Planning Reforms

The NSW Government is continuing its work to reform the planning system through the proposed Low-Rise Housing and Targeted Assessment framework. While the public exhibition of the discussion paper has now concluded, the proposal remains under consideration, with the Department of Planning, Housing and Infrastructure (DPHI) reviewing submissions before determining the next stage of the …

24 June, 2026
Low-Rise Housing and Targeted Assessment: Understanding the NSW Government’s Proposed Planning Reforms

The NSW Government is continuing its work to reform the planning system through the proposed Low-Rise Housing and Targeted Assessment framework. While the public exhibition of the discussion paper has now concluded, the proposal remains under consideration, with the Department of Planning, Housing and Infrastructure (DPHI) reviewing submissions before determining the next stage of the reform process.

For property owners, developers, architects and building designers, understanding what is being proposed; and what has not yet changed, is essential.

At ES Planning, we regularly monitor planning reform across New South Wales to help our clients understand how policy changes may influence future development opportunities. This article explains the Government’s discussion paper in practical terms, clarifies where the reforms currently stand, and outlines what they could mean if ultimately implemented.

Where do the reforms currently stand?

The Low-Rise Housing and Targeted Assessment Discussion Paper was exhibited from 14 May to 24 June 2026. The exhibition has now closed and the proposal is under consideration while DPHI reviews submissions.

The discussion paper is not an Explanation of Intended Effect (EIE), nor does it introduce immediate changes to the planning system. Although the legislative framework supporting targeted assessment has commenced, the pathway cannot operate until future planning instruments, including a State Environmental Planning Policy (SEPP), are prepared and implemented. Until then, the current planning framework remains unchanged.

Why is the NSW Government proposing these reforms?

According to the discussion paper, around 50% of all development applications lodged across NSW relate to low-rise housing, including one and two-storey dwelling houses, dual occupancies and multi-dwelling housing. The Government is exploring whether these generally low-impact, low-risk developments can be assessed through a more proportionate process that focuses on site-specific issues while maintaining good planning outcomes.

Understanding the current planning approval pathways

Residential development is generally approved through Exempt Development, Complying Development or a Development Application (DA). The discussion paper explores introducing a Targeted Assessment Pathway between complying development and a traditional DA for eligible low-rise housing.

What is the proposed Targeted Assessment Pathway?

The proposed pathway would focus assessment on planning matters specific to an individual site while recognising that broader strategic planning decisions may already have been addressed through planning policy. Eligible development would still require development consent, and councils would remain the consent authority. The Government has proposed a target assessment timeframe of 50 days.

What types of development is the proposal intended to cover?

The proposal focuses on eligible low-rise residential development such as detached dwellings, dual occupancies, terraces and townhouses. The proposed code would address built-form matters such as height, floor area, setbacks and landscape area, together with environmental matters including tree retention, stormwater, waste management, biodiversity and contamination.

What developments would not be eligible?

The proposed pathway is intended for low-risk residential development only. Designated development and State Significant Development, including projects such as coal mines, major renewable energy projects, landfill and waste management facilities, would continue to follow their existing assessment pathways.

What planning matters would still require assessment?

One of the key objectives of the proposed Targeted Assessment Pathway is to make assessment more proportionate to the complexity of eligible low-rise housing developments.

Rather than requiring every planning matter to be reconsidered during the development application process, the proposal would allow certain matters to be addressed earlier through strategic planning, the proposed code and future SEPP provisions.

This means the assessment undertaken by the consent authority would become more focused, concentrating on planning issues that remain specific to the individual site and proposal.

Depending on the circumstances, assessment may continue to consider:
• Vehicle access and manoeuvring
• Privacy and overlooking
• Solar access
• Overshadowing
• Landscaping
• Infrastructure servicing
• Other site-specific environmental constraints

The discussion paper also explains that certain broader planning considerations ordinarily addressed during a traditional development application assessment are intended to be resolved through the strategic planning framework and the future code before an application reaches the development assessment stage.

In practice, the proposal seeks to shift where some planning decisions are made, rather than removing planning assessment altogether. The intention is to reduce duplication by focusing assessment on the matters that genuinely require site-specific consideration while maintaining appropriate planning outcomes.

Heritage and hazard-affected land

The Government’s preliminary position is that heritage items and heritage conservation areas are generally not suited to a standardised code-based assessment process. Similarly, the discussion paper indicates a preference to avoid intensification on meaningfully hazard-affected land while recognising that replacement dwellings or alterations may still be appropriate where risks can be managed.

Will neighbours still be notified?

There is a draft Community Participation Plan (CCP) will outline the exhibition requirements for targeted assessment applications. However, the current draft is proposing that applications that meet permissibility, planning controls and do not propose Clause 4.6 variations are to be exempt from public exhibition and notifications. Further information will also be provided in a future EIE for targeted assessments.

Will councils lose planning powers?

No. Councils would continue to assess and determine eligible applications. What would change is the scope of the assessment. Under the proposed framework, some planning matters ordinarily considered during a traditional development application would instead be addressed through the strategic planning framework, eligibility criteria and future SEPP provisions.

What about referrals to other government agencies?

Referral and concurrence requirements are not proposed to be removed. Existing legislative referral processes would continue where applicable.

What happens next?

DPHI is reviewing submissions. If the Government decides to proceed, a future Explanation of Intended Effect (EIE) is expected before a draft SEPP is prepared and implemented. Until then, the current planning framework remains in force.

How ES Planning can help

Planning legislation continues to evolve, and understanding proposed reforms alongside the current planning framework can be challenging.

At ES Planning, we actively monitor legislative amendments, planning policy updates and strategic reforms across New South Wales. Our role is not only to prepare development applications but also to help clients understand how planning policy may influence future opportunities, project feasibility and approval pathways.

Whether you’re considering a new home, dual occupancy, townhouse development or a larger residential project, obtaining planning advice early can help identify constraints, reduce project risk and establish the most appropriate approval strategy based on the planning controls that apply today.

Key Takeaways

  • Consultation closed on 24 June 2026 and the proposal is now under consideration.
    • The discussion paper does not change the current planning framework.
    • Targeted assessment will not operate until future planning instruments are implemented.
    • Councils remain the consent authority.
    • The pathway is intended for eligible low-risk residential development.
    • Existing planning controls continue to apply.
Your source of design inspiration.

We share design tips, tricks, and trends, as well as expert advice and inspiration from across the globe.

22 October, 2025
NSW Housing Pattern Book Design Explained

Walk down any well-planned street and you can sense it. The houses line up just right. Trees cast the right amount of shade. Front doors face each other in a way that makes neighbours wave more often than not. That balance doesn’t happen by accident. In New South Wales, one of the biggest tools behind …

1 September, 2025
What is the Difference Between a DA and a CDC?

Thinking of building or developing in Sydney? You’ve probably come across the terms DA and CDC. It’s easy to get confused, especially if you’re new to property development. Let’s clear it up. There are two main paths to getting approval for your build: a Development Application (DA) or a Complying Development Certificate (CDC). Both bring …

28 July, 2025
How to Avoid Common Mistakes in the Building Design Process

Building a home or commercial space is one of the most exciting things you can do—but it’s also where many people go wrong. You might have a vision in your head, a mood board on your wall, and a budget in place. Still, things can fall apart quickly if key details are missed early on. …


Load more articles