State Significant Rezoning Policy

The planning system already allows for the state to undertake rezonings. Since 2022, state rezoning pathways have seen the acceleration of a potential 66,475 homes.

The state has identified an opportunity to expedite the delivery of more homes and employment for the growing population of NSW by taking on more rezonings and reducing rezoning timeframes.

This is the first time under this pathway that rezonings under assessment have been declared state significant which means they will be assessed by the Department.

A planning proposal is considered unreasonably delayed in the planning system if it has breached the benchmark timeframes outlined in the Local Environmental Plan Making Guideline (PDF, 4.7 MB). In these circumstances, the applicant must be able to demonstrate that the issues associated with the planning proposal have a clear pathway to resolution.

Yes. State assessed planning proposals will take between 185–205 working days and state led rezonings will take 270 working days rezoning from exhibition.

By comparison, the indicative timeframes for council consideration of complex rezonings is 420 working days from lodgement.

This means a potential saving of 200 days.

The Department selects which sites are included. Candidate rezoning proposals will be identified and then reviewed by the Department’s internal evaluation panel in accordance with the State Significant Rezoning Policy to determine the site’s eligibility and to identify the most suitable rezoning pathway. The Departmental evaluation panel ensure site selection is objective and decision making observes probity.

The Department will monitor planning proposals currently in the system to identify proposals that are unreasonably delayed and could be assessed against the policy.

The Department will identify potential sites for the Evaluation Panel to assess against the policy’s assessment criteria.

The Evaluation Panel will prioritise sites based on:

• significant and meaningful public benefits being delivered including ability to help achieve current Government priorities;
• alignment with state policies and land use strategies;
• contribution to the Government’s 5-year housing targets;
• provision of social and affordable housing;
• provision of employment;
• delivery barriers that can be managed and/or have a clear pathway to resolution; and
• investment is committed or available to deliver the rezoning.

Rezoning proposals that do not meet the criteria will continue to follow the council planning proposal process outlined in the LEP Making Guidelines.

The Department will be solely responsible for identifying sites. Other proposals will continue to be assessed by councils as they usually are.

When a site is accepted under the policy, the Department will notify the proponent and council via letter advising of the panel outcome. Proponents may be required to sign a Service Agreement that formalises their commitment to the project's scope, timelines, and responsibilities. The agreement, which will include a fee-for-service, will be sent to the proponent along with the panel outcome letter. Failure to sign the service agreement may result in the project being discontinued.

To guide proponents the Department is developing standard study requirements for all State assessed rezoning proposals. Standard study requirements ensure that studies requested at the rezoning phase are fit-for-purpose and facilitate efficient assessment and decision-making. The proponent will be notified of any project specific study requirements needed to support the assessment of their site.

The Department will continue to work with councils on all proposals that are progressed under the policy. In accordance with the Environmental Planning & Assessment Act, the Department will exhibit all rezoning proposals under the policy. Councils may provide comments on proposals during the exhibition.

Rezoning proposals assessed under this policy will still need to meet statutory requirements for public exhibition. This ensures the community has the opportunity to review and provide feedback before a final decision is made.

Land use zones identify what land can be used for, such as housing, light industry or recreation and development controls set the rule relating building height or floor space. A rezoning changes how land is used and the development controls. For example, a rezoning may change the use of the land from agricultural to residential or from single homes to high density apartment buildings.

After land is rezoned a development application (DA) can be lodged in accordance with the new planning controls.

A DA is an application seeking approval to carry out development, usually made to the local council.

Once land is rezoned, landowners or developers can lodge development applications or complying development certificates which, if approved, allows new homes to be built.

The State Significant Rezoning Policy preferences housing and jobs and will help unlock land to achieve the NSW Government’s commitment to deliver 377,000 new well-located homes across metropolitan Sydney and regional NSW by 2029. By streamlining the rezoning process and facilitating the delivery of much-needed housing and jobs, the Department will help meet NSW growing population's needs. Rezonings finalised under this policy will also ensure that NSW has a pipeline of rezoned land beyond 2029.

Yes, the State Significant Rezoning policy replaces the Rezoning Pathway Program. Projects previously accepted under the State Assessed Planning Proposal Pilot (Industry Nomination) will continue to be assessed under that program. Existing guidelines and timeframes will apply.

Under the policy, the Department will manage the streamlined, end-to-end rezoning process from site identification to finalisation, slashing rezoning timeframes by up to 200 working days by reducing the number of assessment phases associated with council rezonings.

This change will reduce approvals to 185–205 working days (SAPP) rezoning from lodgement and 270 working days (SLR) rezoning from exhibition.

The current council timeframe for complex rezonings is 420 working days from lodgement.

No, we have resources to commit to this work so the Department can carry on with its day-to-day business without any impact.

There were 2 programs:

State-assessed Planning Proposal Industry Pilot

In December 2022, we invited industry to apply under a pilot process for the state-assessed planning proposal pathway.

We received significant interest from industry and, following a rigorous assessment process, we selected 5 projects that will have the opportunity to deliver quality homes, paving the way for new and vibrant communities to thrive.

The following projects have been selected and applicants have lodged relevant documentation with the Department. You can read information about the progress of the assessment of the rezoning projects at:

• Railway Terrace, Schofields
• Cowper Street, Warrawong
• Tolland Estate, Wagga Wagga
• The Northern Road and Bradley Street, Glenmore Park
• Wallarah Road and Pacific Highway, Kanwal.

For further information about the pilot process and next steps, go to:

• Frequently asked questions (PDF, 144 KB)
• State-assessed planning proposal pathway – amended and restated guideline (PDF, 309 KB)
• State-assessed planning proposal pathway guideline – Addendum 1 (PDF, 354 KB)

Rezoning Pathways Program

A package of state-led rezonings and state-assessed planning proposals, identified by the Department under the program, was announced in November and December 2022.

State-led rezonings

• Broadmeadow, Newcastle
• Camellia-Rosehill
• Explorer Street, Eveleigh
• Macquarie Park Stage 1
• Orchard Hills
• Parramatta North’s University and Northern sites
• Riverstone East Stage 3

State-assessed planning proposals

• Appin (part) precinct
• Gilead (Stage 2)
• North Appin