NSW Dual Occupancy Reform: January 2025

A signature reform proposed in December 2023 in NSW, the “Low and Mid Rise Reforms”, would affect planning rules for dual occupancies across NSW. The new rules have been partially implemented, and this article gives an update as at 3 January 2025.

What was proposed for dual occupancies?

The key proposed changes for dual occupancies, overriding any pre-existing local rules, were:

• permissible in all R2 Low Density Residential zones across NSW
• subdivision permissible, with unspecified minimum lot area and width
• specified rules for maximum height (9.5m), maximum floor space ratio (0.65:1), minimum site area (450 sqm), and minimum lot width (12m) within Greater Sydney

What was implemented?

The new permissibility for dual occupancy within R2 zones went into force on 1 July 2024, with exclusions for:

• certain constrained or sensitive areas (heritage item, flood, bushfire, ANEF 20+, coastal sensitive, proximity to pipeline)
• several specific LGAs (Bathurst, Blue Mountains, Hawkesbury, Wollondilly).

On any land where dual occupancy was not previously permissible, a dual occupancy cannot be approved as complying development (CDC) until 1 July 2025. This covers R2 zoned land in Albury, Ballina, Cowra, Hornsby, Inner West, Ku-ring-gai, Lismore, Liverpool, Mosman, Murray River, Northern Beaches (only Warringah LEP), Strathfield and Tamworth.

All other proposed new rules for dual occupancies have not yet been implemented as at 3 January 2025.

What other rules might be implemented?

No specific information has been made public about further implementation of new rules for dual occupancies. However the DPHI website does say that “the Stage 2 reforms will introduce non-refusal standards and controls for dual occupancies in well-located areas", referring to the new numerical controls.

The phrase “well-located areas” means the 800m catchment around stations and centres as defined for the Low and Mid Rise Reform. This may represent a scaling back of the new numerical controls for dual occupancies to only apply near stations and centres instead of across all of Greater Sydney.

What is the timeframe for implementation?

The NSW Government has continued to state they are committed to Low and Mid Rise Reform including for dual occupancies. However they have not given any precise timeframe to implement the full reform. The DPHI website still states “to be announced later in 2024” and “come into effect second half of 2024”, but these timeframes have obviously passed already.

It's unclear what or when the next step is for dual occupancy reform, but in the meantime you can use PropCode to check existing planning rules for your dual occupancy project - just click HERE.