The Committee on the Transport-Oriented Development Program in New South Wales
The NSW Legislative Council’s Portfolio Committee No 7 – Planning and Environment published a report on 15 October 2024, providing some recommendations towards the Transport Oriented Development (TOD) program in New South Wales. The role of the committee is to measure the roll out of the TOD program by inquiring into several matters. This includes undertaking consultations with councils, communities and joint regional organisations about the progression and implementation of the TOD program, along with reviewing the heritage and localised environment concerns with its implementation.
The NSW Government were due to respond on 15 January 2025 and have now published their responses to the recommendations. Out of the 10 recommendations made to the NSW Government, eight are supported in full and two are supported in principle.
Committee’s Recommendations and NSW Government Reponses
| Item | Recommendation | Response |
| 1. | That the NSW Government continue to work in collaboration with local councils and key stakeholders on building community understanding of housing reforms, including the TOD Program. | Supported. The Department of Planning, Housing and Infrastructure (the Department) has recently negotiated the implementation of new development standards for Banksia, Dapto, Woy Woy, Gosford, Berala, Canterbury and North Strathfield with the relevant councils. The department will continue to work alongside councils every day on planning matters, including the TOD program. |
| 2. | That the NSW Government continue to work with stakeholders, including local councils and development industry representatives, to clarify how the TOD SEPP will operate alongside existing planning controls, and update the existing guidelines should there be any further uncertainty. | Supported. the Department has released two documents to provide guidance on using the TOD planning controls and how councils can replace the TOD controls with their own strategic planning. Where there is an emerging area that may require further clarity, the Department has committed to updating the online guidance material and issuing new guidance as required. |
| 3. | That the NSW Government consider evidence on drivers of housing affordability and ensure that detailed planning for the current and any future TOD precincts is tailored for specific localities and considers how the program can best promote housing supply that meets community needs. | Supported. The NSW Productivity Commission’s report ‘Building more homes where people want to live’ (May 2023) found that enabling an increase in the supply of new homes in high demand locations can improve affordability, helping to place downward pressure on the housing market. |
| 4. | That the NSW Government develop a package of measures to address current constraints impacting on residential construction in New South Wales. | Supported in principle. The NSW Government notes that there are constraints on residential construction not within the State’s direct control such as economic feasibility and market challenges including construction costs, materials and labour. The NSW Government feel that the number of reforms that have been introduced to increase the supply and diversity of housing and to speed up the delivery of homes will help counteract this. They also noted that NSW Government agencies are also addressing residential construction constraints through policies such as: – re-opened the Big River Group Grafton timber factory following a major upgrade, to support the supply of high-quality timber products to the construction industry across NSW; – adjusting the foreign investor surcharges from 1 January 2025 and the land tax threshold indexation in 2025 to encourage more properties to be available to NSW residents and ensure that overseas investors buying homes are also contributing to the cost of building homes and the necessary infrastructure to support them; and – $16.3 million to continue fee-free training for apprentices and trainees across the state, which will fund more than 20,000 new apprentices and 19,000 trainees. |
| 5. | That the NSW Government continue the work on a framework for affordable housing under the TOD program. | Supported. The NSW Government will continue to develop mechanisms that promote and facilitate more affordable housing through the planning system. Within the TOD Accelerated Precincts, the NSW Government has required a minimum based rate of 3 per cent affordable housing across all new residential development within the Precincts. Key sites have also been nominated within the Precincts that will be required to have a higher rate of affordable housing, from 4 per cent up to 18 per cent. |
| 6. | That the NSW Government continue to address the broad range of issues contributing to the housing crisis, noting in particular: continued investment in public housing continued involvement of Government in delivery of different housing typologies maintaining design standards and building quality for apartments continuing progressing legislation to reform the rental market and make renting fairer for all renters reviewing the operation of strata title to minimise legal complexity and financial risk for apartment owners, and provide for possibility of future urban renewal. | Supported. The NSW Government is continuing to consider the broad range of issues that have contributed to the housing crisis. This includes: $5.1 billion investment in the delivery of 8,400 new social housing dwellings across NSW in the 2024-25 Budget; – $5.1 billion investment in the delivery of 8,400 new social housing dwellings across NSW in the 2024-25 Budget; – The delivery of a NSW Pattern Book including an international design competition, which will provide easily accessible and adaptable designs for more diverse housing types in order to promote greater housing choice in the future; – The Residential Tenancies Amendment Bill 2024 was passed by Parliament on Thursday 24 October 2024. This progresses the NSW Government’s commitments to improve NSW rental laws; and – New strata laws including expanded disclosure requirements for strata managers will commence from 3 February 2025. |
| 7. | That the NSW Government consider focusing infrastructure funding through the Urban Development Program to areas of growth, including TOD locations, to ensure that community infrastructure and amenity needs are delivered alongside housing. | Supported. The NSW Government has already established the Urban Development Program (UDP) in 8 regions across the State. Also, in the TOD Accelerate Precincts, the NSW Government has committed $520 million for the provision of public open spaces, as well as transport projects to build better communities and demonstrate best practice in delivering density. |
| 8. | That the NSW Government maintain the existing robust design and building standards throughout new housing reforms to ensure long term liveability of new developments. | Supported. The NSW Government increased the Building Sustainability Index (BASIX) requirements for energy and thermal performance on 1 October 2023, with the changes to energy performance estimated to reduce emissions by around 150,000 tonnes a year. The TOD and Loa and Mid-Rise reforms require adherence with the BASIX standards for residential buildings. |
| 9. | That the NSW Government investigate measures to encourage the delivery of family-friendly apartments as part of its housing reforms. | Supported. The Department regularly reviews the Apartment Design Guide and other planning controls and will consider opportunities to support the delivery of family friendly apartments. The Department will undertake research to investigate planning levers to encourage different apartment types in development. |
| 10. | That the NSW Government continues to maintain commitment to 40 per cent urban tree canopy cover across Greater Sydney by 2036 and release further guidance for local councils and industry on managing and minimising mature tree and canopy loss during development, including appropriate compensatory measures for replacement. | Supported in principle. The NSW Government remains committed to maintaining and enhancing tree canopy in our urban spaces, aspiring to deliver 40% canopy cover across the Greater Sydney Region by 2036. While compensatory measures including tree bonds are not currently being explored by the Department, this, and other interventions, can be tested with council using the Greener Neighbourhoods Program as a forum to understand how to best support councils. |
If you have any questions or queries on whether you could benefit from the TOD roll out, please do not hesitate to get in touch with our offices.