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State Significant Rezoning Policy

The NSW Government introduced a State Significant Rezoning Policy (PDF, 887 KB) in September 2024 to identify and deliver strategically important rezonings under 2 state-based pathways – state-led rezonings and state-assessed planning proposals.

The State Significant Rezoning Policy is aimed at identifying land to address the housing and employment needs of the growing population in NSW.

It will also streamline planning efforts of local councils and the department, cutting rezoning timeframes by up to 200 working days.

The policy sets 2 distinct pathways for rezoning:

  • state-led rezoning for large-scale areas or precincts
  • state-assessed planning proposals for sites of state planning significance, or proposals that have been unreasonably delayed in the planning system.

Determining a state rezoning pathway

In determining whether a site is suitable to progress as a state rezoning, the department will consider:

  • Potential time savings – how many assessment days will be saved through a state rezoning pathway.
  • Level of complexity – such as the number of state agencies involved in the rezoning.
  • Scale – including number of homes/jobs to be delivered.
  • Delivery confidence – how quickly the project will be realised.
  • Location – well located and serviced.

The assessment criteria will focus on public benefits, contribution to housing targets, social and affordable housing provision, infrastructure availability and investment certainty.

We only take the lead with a proposal in limited circumstances. This could be for strategically important places that align with state infrastructure investment or places that have complex planning and infrastructure issues.

Projects assessed under these pathways undergo a robust and thorough assessment process.

Sites identified as state-led rezonings or state assessed planning proposals

The following rezonings have been identified as state-led rezonings or state-assessed planning proposals by the department:

  • Blackwattle Bay
  • Fitzwilliam St, Parramatta
  • Redmond Place, Orange
  • Central Place Sydney
  • Coffs Harbour Jetty Foreshore
  • Riverstone Town Centre
  • Marsden Park North
  • West Schofields
  • Parramatta Road Urban Transformation Strategy (Inner West Council)
  • Kurnell Peninsula
  • Tuggerah Gateway Site

Frequently asked questions

Why is the state now undertaking rezonings?

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.

What classifies as a rezoning proposal that is unreasonably delayed in the system?

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.

Will this save time?

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.

Who makes the decision on which sites are included?

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.

How will new sites be selected and how often?

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

Twice a year (September and March) 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
  • investment is committed or available to deliver the rezoning.
     
What if a proposal does not meet the State Significant Rezoning criteria?

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

How can I nominate a site for consideration?

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

Can local councils oppose proposals that are selected by the department under the State Significant Rezoning policy?

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.

Can the public provide feedback on the rezoning proposals?

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.

What is the difference between a rezoning and a DA?

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.

How does a rezoning translate into houses?

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

What are the benefits to the people of NSW?

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.

Does this program replace the Rezoning Pathway Program and State Assessed Planning Proposal Pilot?

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.

How do we know these rezonings are actually going to be delivered faster? What makes this time different?

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.

Does this mean other proposals in the system will take more time?

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

What was the state-assessed planning proposal pilot?

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:

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

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

Rezoning pathway for social and affordable housing

The NSW Government is committed to making sure everyone has access to a safe and secure home. We are prioritising the delivery of more social and affordable homes for communities in need.

To do this, we’re introducing a faster, simplified rezoning process for the state’s housing agencies (Homes NSW and Landcom) to speed up delivery of social and affordable housing.

Learn more about the new rezoning pathway for social and affordable housing.

If you have any questions about the State Significant Rezoning Policy, email [email protected]