Transport Oriented Development

We have added a chapter to the Housing SEPP to introduce new planning controls for TOD. The policy will change planning controls within 400 m of well-located metro and rail stations, including:

• Permissibility – Allowing residential flat buildings in residential zones and local centre zones, along with shop top housing in local centre and commercial zones. 
• Building Height – A 22 metre height for residential flat buildings to maintain design standards, and a maximum building of 24m for buildings containing shop top housing to accommodate commercial ceiling height.
• Floor space ratio (FSR) – A maximum FSR of 2.5:1 has been set. This allows for buildings of up to 6 storeys while providing for good design outcomes in relation to landscaping, building setbacks, privacy and open space.
• Lot size and width – Introduction of a minimum lot width of 21m and no minimum lot size. 
• Street frontages – The inclusion of a clause which applies to local centre zones to consider of active street frontages of buildings at the ground floor.
• Heritage – No change to heritage clauses in local environmental plans. Applications involving heritage considerations will continue to be lodged with and assessed by councils. Any new development needs to improve and enhance the heritage values of those locations.
• Affordable Housing – A 2% mandatory affordable housing contribution, delivered onsite and in perpetuity for developments with a minimum Gross Floor Area of 2000sqm. Affordable housing must be managed by a registered community housing provider. The percentage of the affordable housing contribution will be increased over time.
• Apartment design guide (ADG) – The guide will continue to be the principal guiding document for apartment development, including TOD developments.

The new TOD controls will apply around 37 station locations. 

From April, the TOD controls will apply to sites around the 18 metro and rail stations.  

The NSW Government has agreed to allow some councils to carry out local planning around the remaining 19 TOD stations. Councils’ housing plans will need to meet or exceed the number of new homes expected under the TOD controls. The councils that worked with the department on this process will phase the introduction of new planning controls to allow for more detailed masterplanning around these stations to be completed. Should a council fail to undertake local planning, nor provide equal or greater housing than proposed, the SEPP will come into effect in line with the published schedule.

The amendments to the Housing SEPP to introduce the TOD controls was published on 29 April 2024 and will commence from 13 May 2024. 

Land to which the policy applies has been identified on maps adopted by the Housing SEPP. We will make the maps available on the NSW Planning Portal Spatial Viewer within 3 business days after the amendments to the Housing SEPP are published. When the maps become available, you will be able to type in your address to see if the TOD controls apply to your property.

We have a housing crisis in NSW. In fact, housing is the largest single cost of living issue facing the people of NSW. We must act now to avoid being a city with no young people. The TOD program will allow for the development of new well-located and well-designed mid-rise housing and affordable housing within 400 metres of public transport.  

The changes will allow:

• residential flat buildings in residential zones R1, R2, R3, R4 and employment zone E1
• shop-top housing in employment zones E1 and E2.

Residential flat buildings and shop-top housing will now be allowed, with consent, where they may not otherwise be in a council’s local environmental plan.

Yes. The government is mandating a minimum 2% affordable housing component for new developments in the 37 locations. The affordable housing percentage will gradually increase over time to make sure essential workers such as health workers, teachers and hospitality workers can live closer to work.

Yes. To support increased housing density, the maximum heights of buildings and maximum floor-space ratios will be increased for residential flat buildings and shop top housing in TOD locations. We are also changing development standards such as minimum lot widths to ensure amenity while providing for landscaping, building separation and privacy.

The new development standards are outlined below.

Maximum building heights

The new planning controls will allow a maximum building height of: 

• 22 m for residential flat buildings
• 24 m for shop-top housing. 

Where local environmental plans have a greater height control, this height control prevails.

Maximum floor-space ratios

A maximum floor space ratio control of 2.5:1 will apply to residential flat buildings and shop-top housing in TOD locations. Where there is a greater floor space ratio, or no floor space ratio, nominated in a council’s local environmental plan, this control prevails.

Minimum lot size

The new planning controls do not establish a minimum lot size. If there are controls for minimum lot sizes for residential flat buildings or shop-top housing in a council’s local environmental plan, these will not apply.

Minimum lot width

All residential flat building and shop-top housing developments proposed in the new controls must be on a lot with a minimum width of at least 21 m at the front building line. Building line is defined in Part 1, Division 1, Section 1.5 of the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008.

Active street frontage

The new controls introduce active street frontage considerations for residential flat buildings in local employment zones. Good design can achieve active street frontages by avoiding blank walls at the ground level and providing diverse activities and uses on the ground floor facing the street.

Requirement for 2% affordable housing 

Developments with a total gross floor area of 2,000 m2 or more must provide 2% of this gross floor area as affordable housing. The affordable housing must be provided on the site, in perpetuity, and managed by a community housing provider. 

The affordable housing contribution will gradually increase over time to make sure essential workers such as health workers, teachers and hospitality workers can live closer to work.

Parking

No changes have been made to parking rates in TOD locations. This means that the existing parking rates in Chapter 4 of the Housing SEPP will remain unchanged and will apply to all apartment developments across the State, providing a consistent development assessment approach to parking.  

Additionally, Section 19 of the Housing SEPP sets minimum rates for affordable housing, and these rates will apply to the affordable housing component of residential flat buildings and shop-top housing in TOD locations.  

Yes. The Infill affordable housing incentives in the Housing SEPP will also apply in TOD locations, with contributions to be in addition to the requirement to provide 2% affordable housing in perpetuity.  

Yes. The Apartment Design Guide remains the guiding document for apartment development, including developments in Transport Oreinted Development locations, to provide for a consistent approach for apartment design considerations in the planning. 

Yes. Applications in heritage conservation areas 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.

Clause 5.10 of the Standard Instrument Principal Local Environment Plan will continue to apply to these applications. 
However, the new controls in TOD locations do not apply to land that contains: 

• a heritage item (local or state), or 
• an Aboriginal object, or 
• a site within an Aboriginal place of heritage significance, or
• archaeological sites.

Where a lot contains 2 or more land-use zones, the TOD controls will only apply to the portion of land that has a relevant zone. For example, if a property is partially zoned MU1 Mixed-use and R4 High-density Residential, only the portion of the site that is R4 High-density Residential can be developed under the Transport Oriented Development controls. 

From 13 May 2024, development applications can be lodged on the NSW Planning Portal for sites around the first 18 metro and rail stations. 

The new TOD controls do not apply to a development application made, but not determined, on or before 13 May 2024. The controls do not apply to a modification made after 13 May 2024 if it relates to a development consent granted on or before 13 May 2024.