The NSW Government has released a discussion paper proposing significant changes to the assessment of low-rise housing in NSW.
Low‑rise housing (one or two storeys such as dwelling houses, dual occupancies and multi-dwelling housing) is typically low‑impact, low‑risk, and accounts for 50% of all development applications. However, it is often assessed through disproportionately complex and inconsistent planning pathways.
This discussion paper proposes the use of a targeted assessment pathway for low-rise housing. Targeted assessment is a flexible, streamlined pathway for development that is low-impact, low-risk or has undergone detailed assessment at a strategic level. Residual assessment matters can be captured in the detailed controls and specific merit considerations that apply to the development.
The low-rise housing and targeted assessment discussion paper explores how a statewide low-rise housing code could be developed to simplify and align assessment pathways, including:
- a targeted assessment pathway designed to bridge the gap between complying development and a full development application
- alignment and consolidation of complying development (CDC) standards and variations so that all approval pathways can be found in the one place
- clearly defined standards that apply to both the CDC and targeted assessment pathway to create greater consistency
- clearly defined objectives so that variations to CDC and targeted assessment standards can be assessed transparently and consistently
- alignment of definitions and permissibility to make the planning system easier to navigate.
The discussion paper with proposed changes was exhibited between 14 May and 24 June 2026. We’d like to thank everyone who provided feedback. We’re currently reviewing and considering this feedback, which will inform any future EIE that is publicly exhibited.
More information
If you’d like to read more about the Planning System Reforms visit the NSW Planning website.
If you have any questions about the Planning System Reforms Act 2025, email [email protected].
Exhibition Document
Exhibition Document
Frequently Asked Questions
Frequently Asked Questions
Overview
Overview
What is being proposed through the low‑rise housing and targeted assessment reforms?
The NSW Government is exploring the use of the new targeted assessment pathway to improve how low‑rise housing is assessed. This follows the commencement of the targeted assessment provisions of the Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025 in March 2026.
The reforms aim to:
- simplify assessment pathways for low‑risk, low‑rise housing
- reduce duplication between complying development and development application (DA) pathways
- improve consistency of development controls across NSW
- support faster and more predictable housing delivery.
The Discussion Paper – low-rise housing reforms and targeted assessment, proposes a future framework that would consolidate low‑rise housing controls into a single, standardised code and enable eligible development to be assessed under either a complying development or targeted assessment pathway.
How is targeted assessment different from complying development and a regular DA?
The targeted assessment pathway is a middle ground between complying development (CDC) and a full merit DA. Targeted assessment applications would remain a type of DA but follow a streamlined assessment and focussed process that does not need to address all the usual merit assessment considerations. Applications under this pathway must still include a Statement of Environmental Effects or Environmental Impact Statement. These documents would address the relevant codes and controls for targeted assessment and other specific planning matters.
Can high‑impact projects use targeted assessment?
No. Targeted assessment declarations cannot apply to designated development or State Significant Development that would otherwise be designated development. This includes projects like coal mines, large scale renewable energy projects, landfills and waste management facilities.
Why start with low‑rise housing?
It makes up approximately 50% of all development applications in the system and is generally suited to risk‑based, standardised controls.
The proposal is also a direct response to the housing crisis –aimed at removing unnecessary delays and complexity from planning processes.
Will the proposed low-rise housing code reduce inconsistent outcomes between Local Government Areas (LGAs)?
Yes. The proposed single code aims to replace fragmented Local Environmental Plan (LEP)/Development Control Plan (DCP) controls for low‑rise housing with consistent statewide standards, improving simplicity and consistency across council areas.
Why are some considerations like public interest being removed from targeted assessments?
Targeted assessment is aimed at reducing duplication in assessment and accelerating delivery of low-risk development, where broader considerations like the public interest have been assessed at a strategic level or are encompassed in the targeted assessment controls that apply to the development.
Will land affected by natural hazards be eligible for targeted assessment?
Targeted assessment may apply on hazard‑affected land where risk can be managed. The preliminary policy position is to avoid intensification on land that is meaningfully affected by natural hazards, while allowing replacement dwellings or alterations where risks can be managed through appropriate standards.
Highly affected land would be avoided.
Will heritage properties be included?
Heritage items and heritage conservation areas are generally not suited to a standardised code‑based approach and do not currently qualify for complying development.
The discussion paper seeks feedback on whether any aspects of heritage‑affected development could be included in future reforms.
Low-rise Housing Code
Low-rise Housing Code
What is a ‘code’?
In the discussion paper, a ‘code’ is a legal, form‑based set of rules that sets clear development outcomes, similar to how NSW already uses codes for exempt and complying development.
What will be included in the code?
The discussion paper proposes that the code would primarily focus on design and built form matters like height, floor area, setbacks, open space, and may include or give effect to environmental considerations such as tree retention/landscaping, stormwater, waste, biodiversity and contamination. The code will also clearly indicate if other controls continue to apply.
What happens to local DCP controls?
Many DCP controls relevant to low‑rise housing are proposed to be replaced to reduce inconsistencies between different LGAs and complying development standards. The code will specify where DCPs still apply for matters not suited to standardisation.
Will standards differ between rural and urban areas?
Yes. Some standards (e.g. setbacks) may need to vary by context, while still being delivered through a single, legible code structure.
Will the pattern book be included in the code?
Wholesale integration into the low-rise housing code is unlikely because pattern book development is a bespoke, pre‑endorsed design pathway. Low-rise patterns are already eligible for complying development.
How would assessment differ under targeted assessment?
For development declared eligible for targeted assessment:
- assessment would focus on compliance with the code and applicable planning instruments
- certain matters normally considered under section 4.15 (such as general impacts or public interest) would not be reconsidered at the DA stage, as they are intended to be addressed upfront.
Applications would still be development applications and would still require appropriate documentation.
Does this mean councils lose all discretion?
No. Councils would continue to assess targeted assessment and other DAs and make decisions. However, discretion would be more tightly framed by:
- eligibility criteria set in a SEPP
- non‑discretionary standards in the code
- clearly defined objectives for any permitted variations.
This is intended to improve consistency, certainty and transparency.
Will neighbours still be notified or able to comment?
Targeted assessment can have exhibition requirements set in the SEPP declaration, otherwise a default 14‑day exhibition applies. The final settings will be detailed in a future EIE, subject to ongoing consultation on the state-wide Community Participation Plan.
Will statutory referrals and concurrences be turned off for low‑rise housing?
It is not proposed to turn off referral provisions for low‑rise housing. However, low‑rise housing will benefit from the broader reforms to consolidate referral triggers and streamline agency inputs being led by the Development Coordination Authority.
Will the code introduce more generous standards?
The code is intended to implement consistent, best-practice standards across the State. In some areas, this may result in more generous controls, while in other standards may become more restrictive to align e with the code. The focus is to preserve amenity and mitigate impacts.
Importantly, under the targeted assessment pathway, proposals that do not meet the standards may still be considered against clearly defined objectives.
How will the code respond to different local contexts?
The code will be supported by a robust eligibility and overlay framework that clearly identifies the controls applying to each given site. For instance, a site with minor bushfire risk will be subject to specific controls tailored to that context. This framework will be designed to address a wide variety of local conditions across NSW.
For more constrained sites where the code is not suitable, a full development application will be required, including compliance with local development controls.
Implementation and timing
Implementation and timing
Is the Discussion Paper an EIE?
This is a Discussion Paper, not the legal instrument or an EIE. Before any development becomes eligible for targeted assessment an EIE must be exhibited and considered.
When will these changes be implemented?
The targeted assessment legal framework has commenced, but it has no practical effect until a SEPP declaration is made following the EIE process. The scope of work outlined in the Discussion Paper is extensive and will take time to implement in stages.
Further detail on the approach to implementation will be included in the EIE.
Will there be transitional arrangements for applications already lodged?
Any transition would be set in the future SEPP declaration or associated instruments. Savings and transitional provisions will be implemented where required.