NSW rezoning rules for transit hub suburbs revealed

With the first 18 locations now under the influence of the new rules, the policy is ultimately set to be rolled out across the zones surrounding 37 metro and rail stations.

Peak industry bodies as well as local councils have been consulted on the policy, with additional time given to councils that are undertaking additional local planning.

But the government warned that if councils where the rules are not yet in effect do not undertake local planning, nor provide equal or greater housing than proposed, the new rules will come into force by December 2024.

The new planning controls include:

• Increased permissibility – Allowing residential flat buildings (containing three or more residences) in residential zones and local centre zones, along with shop top housing in local and commercial zones.
• Updated floor space ratio (FSR) – A maximum FSR of 2.5:1 has been set. This allows for buildings of up to six storeys while providing for landscaping, setback, privacy and open space standards to be met.
• Increased building height – A 22-metre height for residential flat buildings to maintain design standards and a maximum of 24 metres for buildings containing shop top housing, to accommodate commercial ceiling height.
• Parameters for lot size and width – Introduction of a minimum lot width of 21 metres and no minimum lot size.
• Street frontage considerations – The inclusion of a clause which applies to local and commercial centres to consider active street frontages of buildings at the ground floor.
• Heritage rules – Applications involving heritage considerations will continue to be lodged with and assessed by councils. Councils are well-placed to assess applications that might involve the removal of a non-contributory building to the heritage value of that area. Any new development needs to improve and enhance the heritage values of those locations.
• Affordable housing – At least 2 per cent mandatory affordable housing contribution, delivered onsite and in perpetuity for developments with a minimum gross floor area of 2,000 square metres, managed by a community housing provider. The rate will increase over time and will reflect market conditions.
• Apartment Design Guide (ADG) – The ADG will continue to be the principal guiding document for apartment development, including TOD developments.

As part of this consultation, 27 briefings were conducted with all councils proposed to be included in the amending SEPP areas.

Development applications related to the first sites to adopt the new rules can be lodged on the NSW Planning Portal beginning on 13 May.

As councils retain their power to assess development applications, the government is rolling out support and guidance for assessing new applications around the designated transport hubs.

NSW Minister for Planning and Public Spaces, Paul Scully, called the reforms “a critical part of our plan to deliver more homes as we confront the housing crisis”, noting that housing has been ranked the biggest cost of living issue for residents.

Though the move has not been without controversy, and not all councils have proved cooperative, Scully said that the consultations have ultimately been productive.

“The extensive consultation has been an important part of developing the settings to help deliver more housing in well-located areas, around transport hubs, close to services, jobs and amenities.

“I want to thank those councils who came to us with a plan to deliver more homes and look forward to seeing the plans as they evolve,” he said.