The NSW Government has clarified aspects of its ‘low and mid rise’ housing reforms introduced earlier this year and has introduced measures to enhance dual occupancy and multi dwelling housing development. These amendments are outlined in the Mosman Local Environmental Plan Amendment (Exempt and Complying Development Codes and Housing—Dual Occupancies) 2025 (‘Housing SEPP’), which applies state-wide.
In particular, ambiguities regarding dual occupancies and multi dwelling housing have been addressed. New provisions in Chapter 6 of the Housing SEPP override local environmental plans in ‘low and mid rise housing’ areas, allowing, in certain circumstances, the subdivision of dual occupancies in R1, R2, and R3 zones, and the subdivision of multi dwelling housing in R4 zones where this was previously prohibited.
Another key clarification is how ‘walking distance’ is calculated for low and mid rise housing areas. Previously this calculation was uncertain, but following the clarification, a lot will be considered part of a ‘low and mid rise housing’ area if any part of it falls within the specified walking distance, enabling developers to potentially consolidate lots.
Additionally, twelve local environmental plans have been amended in ways that affect dual occupancy development, by introducing new minimum lot sizes and facilitating access to complying development pathways in more areas.
These reforms clarify longstanding uncertainties and expand development opportunities. Developers should seek advice to navigate these changes.
