Transport Oriented Development (TOD) Program

The Transport Oriented Development (TOD) program will deliver much needed housing around 39 transport hubs. Housing at these locations will benefit from an assessment pathway to create faster approvals. The program will deliver state-led rezonings within 1,200 metres of 8 priority transport hubs and we are also introducing a new SEPP to increase the capacity for more mid-rise housing and mixed-use development within 400 metres of 31 other well-located transport hubs and town centres.

Housing is the NSW Government’s top priority. We need to work together to address the housing crisis. The Transport Oriented Development (TOD) Program is part of the NSW Government’s plan to create more well-located homes close to transport, jobs and services.

There are two parts to the TOD program:

Part 1 of the program will focus on 8 accelerated precincts to create infrastructure and capacity for 47,800 new homes over 15 years.

Land within 1,200 metres of 8 rail and metro stations will be rezoned by the NSW Government to allow for more new and affordable homes. These 8 stations are:

Bankstown, Bays West, Bella Vista, Crows Nest, Homebush Hornsby, Kellyville and Macquarie Park.

Part 2 of the program will focus on precincts that have existing infrastructure and are located within 400 metres of 31 stations to create capacity for 138,000 new homes over 15 years.

New planning controls, delivered through a new State Environment Planning Policy (SEPP) will enable faster delivery of more housing close to jobs and amenity. These 31 locations are:

Adamstown station, Ashfield station, Banksia station, Berala station, Booragul station, Canterbury metro station, Corrimal station, Croydon station, Dapto station, Dulwich Hill station, Gordon station, Gosford station, Hamilton station, Killara station, Kogarah station, Kotara station, Lidcombe station, Lindfield station, Marrickville station, Morisset station, Newcastle Interchange, North Strathfield metro station, North Wollongong station, Rockdale station, Roseville station, St Marys metro station, Teralba station, Tuggerah station, Turrella station, Wiley Park metro station and Wyong station.

Why are we proposing these changes?

Housing our State is the NSW Government’s top priority.

The NSW Government is committed to delivering more high quality, well-located homes near transport, community services and open spaces.

Putting homes near planned and existing public transport will help to improve the development pattern of our cities by reducing urban sprawl. This means that more people will be able to live within walking distance of supermarkets, restaurants and open space and be near good public transport to get them where they need to go.

This is a well-understood model of urban growth that is commonly referred to as ‘transport-oriented development’, and it has been a key feature of strategic planning in NSW and around the world for many years.

What does this mean for local communities?

The changes will increase the capacity for more well-located homes, close to jobs and in places where people want to live.

Existing community members will benefit from improved access to transport options such as new metro stations, walkable neighbourhoods, a great mix of housing choices, public open space, a vibrant nightlife, and other new amenities and services.

By taking this approach, we can address the housing challenges in a way that makes the most sense. Transport-oriented development represents density done well. It reduces the need for lengthy and expensive daily commutes, alleviates the financial burden on households and curbs traffic congestion. This leads to an improved quality of life for residents.

This kind of development can also help reduce the impacts of climate change, promote active transport like cycling and walking and lead to healthier lifestyles.

When will the TOD program start?

Development Applications are expected to start being lodged from mid-2024. State-led rezonings in the 8 precincts will be completed by November 2024, though some rezonings will be completed earlier. This will allow for housing completions during the Accord period.

Part 1 of the TOD Program:

TOD Accelerated Precincts (the 8 sites) – Objectives of the program

The TOD Accelerated Precincts program will deliver high and mid-rise housing within 1,200 metres of 8 priority transport hubs. The objectives of the program are to:

increase housing supply in well-located areas
enable a variety of land uses (residential, commercial, recreational) within walking distance of train and metro stations
deliver housing that is supported by attractive public spaces, vibrancy, and community amenity
increase the amount of affordable housing in these locations

The 8 state-led rezonings will create capacity for up to 47,800 new well-located homes over the next 15 years.

Where will the accelerated rezonings be?

The accelerated precincts will within 1,200 metres around stations at Bankstown, Bays West, Bella Vista, Crows Nest, Homebush, Hornsby, Kellyville and Macquarie Park.

How were these locations selected?

This was informed by an evidence-based approach that used planning, infrastructure like roads, water and sewage capacity, and spatial data, along with expert advice and feasibility analysis. The analysis identified that these 8 stations have significant capacity to support additional growth.

How will the program work?

Master planning and rezoning

Master planning will ensure additional dwellings are supported by good amenity

The department will undertake master planning for each precinct, supported by technical studies, to determine boundaries, and opportunities for new housing within 1,200m from these stations.

The department will lead rezonings within the precincts, informed by the master plans.

Faster assessment pathways

A new State Significant Development (SSD) assessment pathway for residential development

The new SSD assessment pathway will be triggered by a development Capital Investment Value (CIV) threshold of $60M for residential development in the 8 precincts. The pathway will remain in place until November 2027 to encourage early lodgement of development applications.

SSD applications will be coordinated through a dedicated assessment team within the department to ensure a quicker and more streamlined assessment process.

Development approvals will be time-limited for 2 years to support construction to occur more quickly to deliver housing within the Accord period.

Applications for residential development with a CIV of less than $60M will be assessed by Council.

90 days in government hands commitment for SSD assessment timeframes

The department is committed to a shorter SSD process, with a target of applications being in government hands for no more than 90 days.

Where master planning has significantly progressed, SSD applications can occur in parallel with the state-led rezoning process to reduce the time needed to achieve dwelling completions.

Affordable Housing

The NSW Government will establish inclusionary zoning within the 8 precincts to ensure the delivery of affordable housing close to jobs, recreation, amenities, and services.

Affordable housing held in perpetuity will make up to 15 per cent of homes in the 8 precincts. The exact proportion of affordable homes in these precincts will be based on feasibility testing, undertaken as part of the master planning process.

Opportunities for affordable housing in these locations will look to achieve the maximum benefit from the sites including through planning controls for increased height and floor space ratio.

High quality amenity and vibrant communities

The NSW Government has committed $520M to provide community infrastructure in these precincts

This is intended to cover costs of critical road upgrades, active transport links and good quality public open spaces like parks and walkways, to make sure that homes are built close to jobs and in placed that people want to live.

Further details about how the funding will be allocated will be provided in early 2024.

Councils will also be encouraged to invest the money it collects from local contributions to make further improvements to existing parks and open spaces.

Good design

Good design will remain a key focus with the Apartment Design Guide remaining the principal guiding document for housing in these locations.

The NSW Government will offer developers of high and mid-rise developments in these 8 accelerated precincts the opportunity to select an architect from a list pre-approved by the NSW Government Architect. This new process may allow developers to bypass the requirement to run a design competition, shortening the assessment time by many months.

What housing types will be included in the 8 precincts?

The government wants people to have more choice in housing diversity and be able to be live in high-quality, well-designed homes, located close to jobs, transport and amenity.

Master planning undertaken in the 8 accelerated precincts will determine the mix of housing types to be delivered in these locations. This will range from low rise housing types such as terraces and duplexes within the 1200 metre radius, through to high rise developments very close to the 8 identified stations.

The approach

The department will work closely with relevant councils and government agencies as decisions about planning controls are made and implemented to make sure good place-based outcomes are achieved.

Through this process, community and stakeholders will be invited to have their say on the master plans and rezoning being proposed for each precinct and can make a submission through the NSW Planning Portal.

Part 2 of the TOD Program:

A New SEPP for a further 31 TOD Precincts: Where will the SEPP apply?

The SEPP will apply in the following locations – Adamstown station, Ashfield station, Banksia station, Berala station, Booragul station, Canterbury metro station, Corrimal station, Croydon station, Dapto station, Dulwich Hill station, Gordon station, Gosford station, Hamilton station, Killara station, Kogarah station, Kotara station, Lidcombe station, Lindfield station, Marrickville station, Morisset station, Newcastle Interchange, North Wollongong station, North Strathfield metro station, Rockdale station, Roseville station, St Marys metro station, Teralba station, Tuggerah station, Turrella station, Wiley Park metro station, Wyong station.

How were these locations selected?

The department undertook analysis of 305 Sydney Train, Sydney Metro, and Intercity stations within the Six Cities Region to identify locations that have enabling infrastructure capacity close to a transport station to support additional housing growth. This was informed by an evidence-based approach that used planning, infrastructure, and spatial data, along with expert advice and feasibility analysis. The analysis also considered the current zoning of land around stations, with a focus on residential and avoiding industrial zones where possible. The analysis identified that these 31 locations have the capacity to support additional growth.

What will the SEPP include?

From April 2024, new planning controls will apply within 400 metres of 31 well located and well-connected stations and town centres.

The changes will allow:

Residential apartment buildings in all residential zones (R1, R2, R3, and R4) within 400m of identified stations
Residential apartment buildings and shop-top housing in local and commercial centres (E1 and E2) within 400m of identified stations

Proposed changes to planning controls:

Maximum building height 21m (approx. 6 storeys)
Floor space ratio 3:1
No minimum lot size or lot width

Minimum active street frontage controls in E1 and E2 zones
Maximum parking rates

It also proposes to introduce new design criteria for mid-rise residential apartment buildings:

Building separations
Setbacks
Vehicle access
Visual privacy
Communal open space

How will the program work?

When the SEPP is made from April 2024, new planning controls in these locations will come into effect and development applications will be able to be lodged with councils. These applications will then be assessed and determined by the relevant council.

Good design

Good design and well-built homes will remain a critical focus, with the Apartment Design Guide being the principle guiding document for residential apartment buildings and shop-top housing in these locations.

Amended design criteria are proposed that reflect the unique design challenges of mid-rise buildings and may vary some existing Apartment Design Guide provisions. The design provisions will ensure apartment buildings and shop-top housing around these stations are well-designed and have excellent amenity and liveability for residents and contribute to the amenity of the neighbourhood.

Additionally, the NSW Government is developing a pattern book of endorsed housing designs for both low-rise and mid-rise (up to six storeys) buildings. Developers who choose to adopt the endorsed pattern book designs will have access to an accelerated approval pathway – meaning builders can get on site faster, and people can move into new homes sooner.

While this pathway will be attractive for some developers for its speed and certainty, it will not be compulsory. Builders and their architects can still design bespoke developments that will go through the regular approval pathway.

What housing types will be included in the delivery of this program?

The government wants people to have more choice in housing diversity and be able to be live in high-quality, well-designed homes, located close to jobs, transport and amenity.

The SEPP will increase the supply of mid-rise flat buildings (up to 6 storeys) within 400 metres of stations. This will also include apartment buildings that contain shops on the ground floor.

Affordable housing

The NSW Government will establish inclusionary zoning around these locations to deliver affordable housing close to jobs, recreation, amenities, and services.

A mandatory minimum 2% affordable housing contribution will apply for all new developments.

The existing in-fill affordable housing provisions set out in the Housing SEPP 2021 will also continue to apply in the SEPP locations.

The approach

We need to confront the housing crisis together, so councils in the areas where the SEPP will apply will be able to have their say on the proposed changes to the planning controls during the targeted consultation period.

We support and encourage councils to develop strategic plans for well-located precincts to maintain continual growth. The SEPP will remain in place until councils have finalised their strategic planning in ways that align with the NSW Government policy objectives.

More Answers:

What are the likely environmental impacts and how will they be addressed? Increasing density near planned and existing public transport will help improve the development pattern of our cities by reducing development sprawling out away from central parts of the city. This will mean more people will be able to live within walking distance of transport, jobs, services, and amenities. This kind of development is cheaper because it uses existing infrastructure, can help reduce impacts on climate change, and promote active transport like cycling and walking

Technical studies will also be undertaken in each accelerated precinct – including relevant environmental studies, to make sure that the impacts are understood and addressed through the master planning process.

Additionally, a merit-based assessment will continue to apply to developments in the 31 TOD-SEPP locations. Relevant environmental controls will apply to the extent they are not inconsistent with the new standards.

Will the TOD program apply in heritage conservation areas? If so, how will it impact character?

The changes proposed will result in significant change in these locations as additional housing is delivered. But it is important to work together to embrace the transition that will occur as the character of these locations evolves.

The new planning controls will apply in heritage conservation areas. However, a merit-based assessment will continue to apply to developments in these locations and relevant heritage controls will apply to the extent they are not inconsistent with the new standards.

How will the Special Entertainment Precinct (SEP) framework apply?

The NSW Government is encouraging local entertainment zones that are vibrant and diverse, especially at night. The new Special Entertainment Precinct framework, which expands on the one that delivered the successful Enmore Road Special Entertainment Precinct, may apply to the 39 precincts, but only at the request of the councils. This can deliver vibrant, safe ‘going-out’ destinations supported by adequate and reliable transport. Details on Special Entertainment Precincts can be found here.

What infrastructure contributions will apply?

The government introduced Housing and Productivity Contributions in October 2023, and phase-in discounts will apply up to June 2025. This was done in anticipation of the reforms outlined in the document and to supply much need infrastructure in general. The department is developing a digital tool to allow for contributions to be calculated online. This tool will be integrated into the NSW Planning Portal and automates the ongoing administration, tracking and reporting of contributions. The contribution must be paid before a construction certificate is issued.

Local infrastructure in NSW is generally funded through either s7.11 or s7.12 contributions, paid by developers to the local council. Details of local infrastructure contributions will be resolved as soon as practical and be published publicly to enable transparency and support developer investment decisions. This may include an interim fixed Section 7.12 contribution rate where a plan does not exist or a comprehensive review of existing contributions plan/sis required.

How will this interact with proposed council-led strategies around transit hubs?

For the 8 accelerated precincts, the department will undertake master planning for each of these areas supported by technical studies, and consider opportunities for additional housing within 1,200m from these stations. But the department will work closely with relevant councils as decisions

about planning controls are made and implemented to make sure place-based outcomes are achieved.

For the TOD SEPP locations, the amended planning controls will remain in place until councils have completed and delivered a new strategic vision and rezoning for these areas.

The strategic planning must consider:

Uplift in these locations equal to or exceeding the SEPP controls.
Use of planning controls and zones that reflect medium-high density potential in these areas.
Residential supply pipeline into the future to make sure uplift in these areas is sustained.
Long-term affordable housing provisions in perpetuity.
Amenity outcomes, including open space provision.

Will the TOD program apply to land zoned for industrial uses?

The planning controls will not apply to land zoned for industrial uses, to make sure these critical land uses are retained and managed.

NSW Transport Oriented Development Program