Blackstone Waterhouse
21 October 2024
The NSW Government’s Transport Oriented Development (TOD) planning reform is underway through an amendment to the State Environment Planning Policy (Housing) 2021 (SEPP), commonly referred to as the Housing SEPP. This program is one of the largest planning reforms introduced in NSW. The objective of this reform is to increase housing supply and affordable housing, greatly benefitting the younger generation of home owners.
A critical component of the TOD reform is the amendment to the SEPP. A new Chapter 5, dedicated to TOD, has been introduced to enforce new planning controls on the designated areas surrounding identified transport station. The first TOD amendment was officially enacted on 24 April 2024 and came into effect on 13 May 2024.
Where does the new SEPP apply?
The SEPP policy will change planning controls within a 400-meter radius of the current 18 designated metro and rail stations. These controls include more flexibility around the following:
- Permissibility – Allowing residential flat buildings in residential zones and local centre zones, along with shop top housing in local centre and commercial zones
- Floor Space Ratio – The Floor Space Ration has been increased, allowing grater design outcomes (i.e. through landscaping, setbacks, and open space).
- Building Height – The allowance of building height has been increased (this beneficially enables shop top housing to have higher ceiling heights).
- Lot size and width – A minimum lot width of 21 m has been introduced, with no minimum lot size.
- Heritage – New developments will need to demonstrate that they improve and enhance heritage values.
- Affordable Housing – 2% mandatory affordable housing contributions apply (where the minimum gross floor value is 2000m2). It is also clear that the percentage of the affordable housing contribution will be increased.
- Active Street Frontages – A clause has been included in the SEEP which applies to local centre zones to consider active street frontages of buildings at the ground floor.
These controls aim to facilitate the delivery of affordable, well-designed, and strategically located residential options for key workers and young families. Currently, there are 37 station locations in which the ‘transport-oriented development’ policy applies, including Kogarah, Lidcombe, Gosford, Canterbury and North Wollongong (amongst others).
How does this affect my Development?
The TOD amendment will reduce uncertainty and expedite development applications, where the development falls within 400m of the stations, in which this reform applies, allowing for a streamlined planning process for development projects near transport hubs.
There is now more potential than ever for obtaining development consent in TOD areas.
If your development is impacted (or may be impacted) by the TOD reforms and wish to discuss further, please contact our office.