There is an urgent need to provide housing for temporary workers involved in constructing large-scale development and infrastructure projects.
As NSW strives for a net-zero future and continues to invest in state-shaping infrastructure projects, it is crucial that construction workers – who are vital to these projects – have access to suitable accommodation.
However, councils and the community face many challenges in providing temporary accommodation, including a lack of clarity regarding the planning mechanisms to use and an absence of guidance.
In response to these challenges, we released reforms in 2024 to support the delivery of construction worker accommodation within renewable energy zones. These changes provided a clear planning pathway to improve certainty for industry, councils and the community.
We have now made further amendments to the State Environmental Planning Policy (Housing SEPP) 2021 to broaden the definition of construction workers accommodation, making it easier for everyone to access the housing types they need.
These amendments automatically apply to Councils listed in Part 13 of the Housing SEPP. Councils that are not currently listed in the SEPP are invited to opt-in to the new provisions before 5 pm 31 March 2026 by emailing [email protected]
We have prepared Guidelines for Construction Workers Accommodation – May 2025 (PDF, 8.7 MB) to accompany the reforms and support proponents and councils in preparing and considering development applications for construction workers' accommodation.
Seasonal workers
Feedback received about seasonal workers accommodation highlighted the complexities and competing needs involved in this type of development, that are better assessed at the local level.
We will support councils interested in adding provisions to their local environmental plans for seasonal workers. Councils should contact the Department for further information.
To assist in this process, councils can refer to the draft Temporary and Seasonal Workers' Accommodation Toolkit for detailed guidance. This toolkit included a new planning framework and guidelines intended to give councils more certainty and clarity around planning and delivering temporary and seasonal workers' accommodation. The draft toolkit was exhibited between August and September 2023.
Construction workers accommodation is for a fixed term and provides temporary housing for workers employed on large-scale development and infrastructure projects. This type of housing reduces the demand for temporary accommodation, which can be an issue when these sorts of projects commence.
Construction workers accommodation is not suitable for long-term housing needs. Councils and applicants should explore other land uses for long-term housing solutions.
The construction workers accommodation reforms will:
- create a local planning pathway for housing for construction workers of large-scale development and infrastructure projects
- ensure consistent standards for all manufactured homes and moveable dwellings that are used for construction workers accommodation
- include the Guidelines for Construction Workers Accommodation – May 2025 (PDF, 8.7 MB) to support proponents and councils in preparing and considering development applications for construction workers accommodation
- encourage ongoing communication with communities regarding accommodation needs within areas where large scale development and infrastructure projects are underway.
Construction workers accommodation cannot be converted to farm stay accommodation.
New provisions will be inserted into the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 prohibiting the conversion of construction workers accommodation into farm stay accommodation as exempt development and vice versa.
This is to ensure that construction workers accommodation remains temporary. Conversion from construction workers accommodation to another type of accommodation can only occur with a development application to council.
The provisions for construction workers accommodation apply to all local government areas in the renewable energy zones. The applicable councils are:
- Armidale Regional
- Balranald
- Cabonne
- Carrathool
- Central Coast
- City of Cessnock
- Dubbo Regional
- Dungog
- Edward River
- Gilgandra
- Glen Innes Severn Shire
- Hay
- Inverell
- Kiama
- City of Lake Macquarie
- Liverpool Plains
- City of Maitland
- Mid-Western Regional
- Murray River
- Murrumbidgee
- Muswellbrook
- Narromine
- City of Newcastle
- Port Stephens
- City of Shellharbour
- Singleton
- Tamworth Regional
- Tenterfield
- Upper Hunter Shire
- Uralla
- Walcha
- Warren
- Warrumbungle Shire
- Wentworth
- Wingecarribee
- City of Wollongong.
The reforms focus on accommodation for workers employed or engaged in building large scale development and infrastructure projects identified in the guidelines. Construction workers accommodations usually operate during construction and are decommissioned once this phase is complete.
Proponents of projects in the following industries may be eligible to access the special provisions for construction workers accommodation:
- electricity infrastructure development for renewable energy zones
- mining industry
- extractive industries
- air transport facilities
- port facilities and wharf or boating facilities
- rail and related transport facilities
- general public authority activities
- rail infrastructure
- water storage or water treatment facilities and pipelines.
For more information about the types of large-scale development and infrastructure projects that are eligible for these provisions, refer to section 141D of the Housing SEPP.
Construction workers accommodation is permitted in all residential zones.
However, there are circumstances where non-residential zones are more suitable, such as rural zones near renewable energy infrastructure or business zones with convenient amenities and transport links.
In these cases, construction workers accommodation is permitted in the non-residential zones if the consent authority is satisfied that it is appropriate in the circumstances, as outlined in the Guidelines for Construction Workers Accommodation – May 2025 (PDF, 8.7 MB).
Construction workers accommodation is prohibited in RU3 Forestry, Conservation (C), Waterway (W), and Recreation (RE) zones.
The development standards for construction workers accommodation are in Chapter 3, Part 13, of the State Environmental Planning Policy (Housing) 2021. The provisions address location, duration, amenity provision, environmental, hazard, traffic and amenity mitigation and character impacts.
The Local Government (Manufactured Home Estates, Caravan Park, Camping Grounds and Moveable Dwellings) Regulation 2021 has also been amended to align the requirements for moveable dwellings to construction workers accommodation.
Construction workers accommodation excludes campervans, caravans, or tents.
The Guidelines for Construction Workers Accommodation – May 2025 (PDF, 8.7 MB) help ensure that construction workers accommodation use remains temporary. Councils are required to ensure that moveable dwellings and ancillary buildings that are part of the development are removed when the project ends.
An accommodation and employment strategy includes the key accommodation and employment needs of a renewable energy project.
Applicants can refer to appendix 1 of the guidelines for help preparing an accommodation and employment strategy and documents for their development application. However, the information in the template is not exhaustive and proponents or councils may add additional items based on regional or site-specific circumstances.
The guidelines also state that a plan of management, a social impact statement, a traffic and transport impact assessment and a decommissioning plan might need to be submitted with the development application for construction workers accommodation.
The guidelines provide details on the content of each of these plans and when they might be required.
Development of temporary workers accommodation may form part of an application for state significant development or state significant infrastructure. The Housing SEPP provisions and guidelines do not apply in this case. The Housing SEPP provisions for construction workers accommodation only apply if using a local planning pathway.