In alignment with the National Housing Accord and following on from the proposal for low- and mid-rise reforms that went on exhibition from 15 December 2023 to 23 February 2024, NSW Government has introduced new amendments to the State Environmental Planning Policy (Housing) 2021.
The aim of these reforms is to increase supply of low-rise housing and mid-rise housing of 3-6 storeys in ‘well-located areas’, that is, town centre precincts that are nearby or within walking distance to public transport, shops, supermarkets, services and amenities. This will give more people the opportunity to live by their workplaces and other places they frequent. Community and council feedback from the Explanation of Intended Effect was largely centred around traffic, congestion, preservation of local character and the need to establish accompanying infrastructure and green spaces. NSW Government has addressed these concerns with exclusions to the low- and mid-rise housing policy that protect heritage sites and prohibit the policy’s implementation from locations that have a high risk of hazards or are difficult to evacuate.
The updated policy will be rolled out in stages, with Stage 1 having took effect today. Over the next 5 years, it is expected to deliver 112,000 more homes, a significant step towards the housing accord target of 377,000 by July 2029.
Exclusions to the low- and mid-rise housing policy
The changes that came into effect on 1 July 2024 do not apply to some delicate areas including:
- land with limited evacuation routes and that is highly susceptible to natural hazards like floods and bushfires, including the Hawkesbury, Blue Mountains and Wollondilly local government areas
- land that presents risk to the environment including coastal wetlands, littoral rainforests or coastal vulnerability areas
- the Bathurst local government area as there is no suitable R2 land
- land nearby dangerous goods pipelines and high-level aircraft noise
- land that is or contains heritage items
- land in a Transport Oriented Development Area, as defined under chapter 5 of the State Environmental Planning Policy (Housing) 2021
When Stage 2 commences later in 2024, land in proximity of Botany Industrial Park will also be excluded from the policy. Further information on these exclusions can be found on the Policy exclusions fact sheet.
Stage 1 changes
As of 1 July 2024, dual occupancies and semi-detached homes are permissible in all R2 low-density residential zones in NSW. In areas where dual occupancies will be newly permitted, the complying development approval process will only become available at Stage 2 of the reforms to allow affected councils time to plan for the new settings.
The 13 local government areas include: Albury, Ballina, Cowra, Hornsby, Inner West, Ku-ring-gai, Lismore, Liverpool, Mosman, Murray River, Northern Beaches (Warringah Local Environmental Plan), Strathfield and Tamworth. These councils have until 1 July 2025 to establish appropriate controls, such as minimum lot sizes, for dual occupancies.
Councils with existing complying development pathways will remain unaffected.
Stage 2 changes
In addition to the implementation of a fast-track planning pathway for the rest of the R2 zones in NSW, Stage 2 will introduce several notable changes to the low- and mid-rise housing policy that will come into effect at the back end of 2024.
- implement policy and encourage density in ‘well-located areas’ that will be identified by their proximity from the station and town centre precincts. Areas in Sydney, Central Coast, Illawarra and the Hunter region that are within an 800m walking distance from these precincts will be mapped in the Housing SEPP.
- allow more low- and mid-rise housing types including:
- multi-dwelling housing (terraces and townhouses) in station and town centre precincts in zones R1, R2, R3
- low-rise apartment buildings in station and town centre precincts in zones R1 and R2
- mid-rise apartment buildings in station and town centre precincts in zones R3 and R4.
- facilitate development of dual occupancies, multi-dwelling houses and low- and mid-rise apartment buildings in ‘well-located areas’ by establishing new non-refusal/development standards like building heights, floor space ratios and minimum lot sizes
- exclude certain employment zones (E1, E2, MU1 and SP5) and heritage sites and retain council strategic planning to preserve local character and viability of employment centres
- exclude land within identified proximity of Botany Industrial Park
The policy exclusions from Stage 1 will continue to stand.
Introduction of non-refusal/development standards
Non-refusal standards are a planning control that ensures consistency across development criteria such as building height and minimum lot size. They are typically a more simplified pathway to approval than a local environmental plan or development control plan. Non-refusal standards overrule these local provisions, so provided they are met, a development application cannot be declined on this basis, even if a local environmental plan or development control plan is not met. If a local environmental plan or development control plan is more permissive, only then will it prevail over non-refusal standards.
Through this process, the introduction of stakeholder-considered non-refusal standards during Stage 2 of the policy reforms will further allow the expansion of low- and mid-rise housing, especially in areas where these development types were previously not permitted.


