NSW Government’s Housing Reforms

NSW Government’s Housing Reforms

The NSW Government have undertaken a range of housing reforms in their approach to increase housing supply. Several policies and codes have been introduced to allow development of diverse housing options, including dual occupancies, multi dwelling housing, terraces, manor houses, and low and mid-rise apartments.

For current policies and provisions in relation to housing diversity refer to the NSW Department of Planning, Housing and infrastructure (DPHI) website.

The information below is general in nature and interpreted from the NSW Department of Planning, Housing and Infrastructure website. It is recommended that you seek your own planning advice before making any decisions.

 

Low Rise Housing Diversity Code

On 6 July 2018 the NSW Government introduced the Low-Rise Housing Diversity Code. The Code allows for one and two storey dual occupancies, manor houses and terraces to be carried out as Complying Development if they meet the required provisions and are permitted under the land use zoning.

The Low-Rise Housing Diversity Code within the Exempt and Complying State Environmental Planning Policy (SEPP) specifies that if a council has a minimum lot size for dual occupancy, that the council lot size provisions override the State Environmental Planning Policy. Council has a minimum lot size for dual occupancy in the R2 Low Density Residential zone of either 600m2 or 900m2 depending on location. Refer to the Fairfield LEP 2013 Minimum Lot Size for Dual Occupancy map.

Dual occupancies as complying development are permitted in Zone:

  • R1 General Residential (located within the suburb of Bonnyrigg)
  • R2 Low Density Residential where a minimum lot size also applies (either 600m2 or 900m2) and
  • R3 Medium Density Residential

Manor houses and terraces as complying development are allowed where multi dwelling housing is permitted in Zone:

  • R1 General Residential
  • R3 Medium Density Residential

Low Rise Housing Diversity Design Guide

The design guide aims to improve the design of medium density housing through layout, landscaping, private open space, light, natural ventilation and privacy. Complying development applications are required to consider and be consistent with the Low-Rise Housing Diversity Design Guide.

Principal Certifier Responsibility

It is the responsibility of the Principal Certifier to determine whether proposed development under the Low-Rise Housing Diversity Code applies to the land. If it is determined by a Principal Certifier that the development does not constitute complying development under the Low-Rise Housing Diversity Code the applicant will be required to lodge a development application for the proposed development to Fairfield City Council.

More information can be viewed on the NSW Department of Planning, Housing and Infrastructure website link below.

Link: NSW DPHI – Low-Rise Housing Diversity Code

 

 

Low and Mid Rise Housing Policy

Low and Mid Rise Housing Reform – Stage 1

On 1 July 2024 the NSW Government introduced Stage 1 of their Low and Mid-Rise Housing reforms. Stage 1 made dual occupancies and semi-detached homes permissible in the R2 Low Density Residential zone across all of NSW. This did not directly impact Fairfield LGA as dual occupancies and semi-detached dwellings were already permissible in the LGA, supported by relevant minimum lot sizes for dual occupancies (primarily 600 sqm in the eastern parts of the LGA and 900 sqm in the rest of the LGA).

Low and Mid Rise Housing Reform – Stage 2

On 28 February 2025 the NSW Government introduced the Low and Mid-Rise Housing Reforms. The housing reforms aims to fill the gap between freestanding homes and high-rise apartment buildings, so that everyone can have a choice in the type of homes they live in.

The Low and Mid-Rise Housing Policy will be part of the State Environmental Planning Policy (Housing) 2021. The policy will change planning controls within 800 metres of well-located shops, services and transport hubs to allow low and mid-rise housing.

Dual Occupancies

Council currently permits dual occupancies in the R2 and R3 zone. In the R2 zone Council has a minimum lot size based on location. Some areas in close proximity to services and transport have a minimum lot size for dual occupancy of 600sqm, while the remainder of the R2 zoned areas have a 900sqm minimum lot size for dual occupancy.

The new State provisions include a 450sqm minimum lot size for dual occupancy along with a range of other non-discretionary development standards. These provisions will only apply to mapped areas around Fairfield, Cabramatta and Canley Vale. Link to the Low and Mid-Rise Housing Policy Indicative Map

Multi dwelling housing (townhouses and terraces)

Multi dwelling housing and terraces are currently permitted in R3 and R4 zones in Fairfield LGA. The new Stage 2 provisions allow these housing typologies within the R2 zone; however, these provisions will only apply to mapped areas around Fairfield, Cabramatta and Canley Vale. Link to the Low and Mid-Rise Housing Policy Indicative Map

A range of new non-discretionary development standards apply for multi dwelling housing in these precincts including minimum lot size of 600sqm, floor space ratio of up to 0.7:1 and maximum height of building of 9.5 metres.

Residential flat buildings and shop top housing

Residential flat buildings (or apartments) are currently permitted within the R4 zone in Fairfield LGA, primarily around centres such as Fairfield, Villawood, Canley Vale and Cabramatta. The new Stage 2 provisions identify a change in permissibility with these types of developments now permissible within the R2 and R3 zones in those areas mapped around Fairfield, Cabramatta and Canley Vale. Link to the Low and Mid-Rise Housing Policy Indicative Map

A range of new non-discretionary development standards apply for apartments in these precincts. Lower scale apartment developments are permissible in the R2 zones, while within the R3 and R4 zones up to 4 - 6 storey apartments are permissible within 400-800 metres of a mapped station or centre.

Further details on the development standards can be viewed on the NSW DPHI website. Key Provisions

Non-discretionary standard

A non-discretionary development standard, also known as a non-refusal standard, provides consistent development assessment guidelines for matters like building heights, floor space ratio or lot size and apply to the Low and Mid Rise Housing precincts in the Fairfield LGA. A non-discretionary standard can overrule a local environmental plan (LEP) or development control plan (DCP) standard. If the proposed development complies with the non-discretionary standard, a consent authority cannot refuse the application because it does not meet the LEP or DCP standard.

 

Exclusions and constraints

NSW DPHI identify a list of exclusions that are based on hazard and constraint mapping.

The key constraints that affect Low and Medium Rise Housing precincts in the Fairfield LGA include (but are not limited to):

  • Flood prone land within the Georges River water catchments – this exclusion is in line with the 2022 NSW Flood Inquiry and excludes any land that is affected by flooding up to and including the Probably Maximum Flood. The area affected by flooding is vast and includes areas around Fairfield City Centre, Canley Vale, areas along creek lines and other areas affected by Overland Flooding.
  • Bushfire prone land – this excludes any land that is bushfire prone. There are small pockets of bushfire prone land within the urban areas of Fairfield primarily along creek lines or areas with large areas of vegetation.
  • Heritage items – the policy does not apply to land that comprises or contains a heritage item listed in a Local Environmental Plan or the State Heritage Register.
  • Coastal Wetlands and Littoral Rainforest Areas – areas mapped under the State Environmental Planning Policy (Resilience and Hazards).
  • Pipelines – land within 200m of a registered (e.g. gas) pipeline. 

More information can be viewed on the NSW Department of Planning, Housing and Infrastructure website link below.

Link: NSW DPHI – Low and Mid-Rise Housing Reforms

In-fill Affordable Housing

On 14 December 2023 the NSW Government implemented in-fill affordable housing reforms to encourage private developers to boost affordable housing and deliver more market housing.

The reforms include opportunity for increased floor space ratio and height of building controls based on the amount of affordable housing provided in that development. Floor space and height of building bonuses of 20-30% may apply for projects that include at least 10-15% of the gross floor area as affordable housing.

More information can be viewed on the NSW Department of Planning, Housing and Infrastructure website link below.

Link: NSW DPHI – In-fill Affordable Housing