The Sydney Plan
The Sydney Plan sets out how the NSW Government will address growth in Sydney over the next 20 years, including housing and jobs. It provides a clear picture of how state and local government can leverage land use planning to address challenges and make the most of opportunities in the region. This Plan identifies what must be done today to secure the right land use outcomes in the short, medium and long term.
Once finalised, the Sydney Plan will replace the current Greater Sydney Region Plan: A Metropolis of Three Cities (2018) and associated district plans.
The Greater Sydney Region Plan was released in 2018 by the former Greater Sydney Commission. Since then, the NSW Government has committed to streamlining the planning system and brought all planning functions into one agency – the Department of Planning, Housing and Infrastructure.
The Sydney Plan is the first of a new generation of regional plans described in A New Approach to Strategic Planning: Discussion Paper. It demonstrates a simpler, consistent and streamlined approach to strategic planning across the state.
The Sydney Plan still reflects a bold vision for Sydney as the economic engine of NSW and Australia. It is a practical plan and grounded in reality, spelling out what is needed to accommodate more people fairly and equitably, and ensuring everyone has the infrastructure and services to live well. It focuses on land use planning and policy and leads the way for infrastructure and delivery agencies to follow. The Plan sets out actions that will be delivered in the next few years to progress the 20-year vision.
The Sydney Plan focuses on land use challenges and opportunities in the Sydney region. The plan includes actions for implementation over the next 5 years that are aligned with the 20-year direction for Sydney’s growth. In this period, the plan will inform local strategic planning and assessment processes, infrastructure planning and prioritisation, and public and private investment decisions.
The Sydney Plan is structured by the priorities set in A New Approach to Strategic Planning: Discussion Paper, which will ultimately be included in the State Land Use Plan. It applies 7 priorities to the Sydney context:
- Aboriginal outcomes
- Housed
- Prosperous
- Connected
- Resilient
- Liveable
- Coordinated.
These priorities are addressed with specific policy and planning responses, including:
• implementing Sydney housing targets
• increasing housing diversity and choice
• securing the supply of affordable housing
• growing well-located jobs
• aligning infrastructure to planned growth
• creating a more vibrant Sydney
• growing and connecting public open space
• securing an ongoing pipeline of productive industrial lands
• minimising the impact of natural hazards on communities
• sequencing planned growth in greenfield areas within the urban footprint
• managing land uses beyond the urban footprint
• protecting and enhancing the natural environment.
The Sydney Plan will be finalised in 2026.
The Sydney Plan is designed to guide the NSW Government and councils. It provides direction for planning practitioners and decision-makers across infrastructure and investment sectors to align with and support Sydney’s growth and development.
The NSW Government has already introduced significant reforms to address housing supply in Sydney, particularly in well-located areas, and to streamline the planning process. Key initiatives include:
The Sydney Plan gives effect to these reforms and provides further direction for housing and other land use strategies to support housing growth.
The Urban Development Program (UDP) coordinates the planning and prioritisation of infrastructure, including roads, schools, health facilities and open space to support new housing aligned with the Sydney Plan. It tracks and forecasts housing supply, identifies gaps in development-ready land and highlights risks to timely delivery.
The UDP also publishes Infrastructure Opportunities Plans to guide NSW Government budget decisions and agency investment in infrastructure that supports the delivery of new homes in regions where the Housing and Productivity Contribution is collected. The first iteration of these Infrastructure Opportunities Plans is currently being prepared. They will be updated annually to reflect current infrastructure needs. Councils will use these plans to align their local infrastructure programs with state priorities, ensuring coordinated and timely infrastructure delivery.
Rental stress is evident in every Local Government Area (LGA) in Sydney. An affordable housing contributions scheme is a key local strategic policy to boost affordable rental housing supply through monetary, floorspace and/or land contributions.
In recent years, the Department has worked with several Sydney councils, including the City of Sydney, Willoughby, Canada Bay, Randwick, Northern Beaches, Penrith and Waverley, to implement such schemes. To further support this process, the Department will provide a toolkit to help fast-track the preparation and adoption by Sydney councils.
No. As outlined in the A New Approach to Strategic Planning: Discussion Paper, it is proposed that a consistent, statewide approach be introduced that no longer includes District Plans.
Both terms refer to the 33 Local Government Areas (LGAs) that make up the Greater Sydney region. These include Bayside, Blacktown, Blue Mountains, Burwood, Camden, Campbelltown, Canada Bay, Canterbury-Bankstown, Cumberland, Fairfield, Georges River, Hawkesbury, Hornsby, Hunters Hill, Inner West, Ku-ring-gai, Lane Cove, Liverpool, Mosman, North Sydney, Northern Beaches, Parramatta, Penrith, Randwick, Ryde, Strathfield, Sutherland Shire, Sydney, The Hills Shire, Waverley, Willoughby, Wollondilly, Woollahra.
The draft Sydney Plan uses the terms ‘Sydney’ and ‘Sydney region’ and applies to the same 33 LGAs as the 2018 Greater Sydney Region Plan. A Ministerial Order will formally declare the ‘Sydney region’. Under amendments yet to commence to the Environmental Planning and Assessment Act 1979, all strategic planning regions will be declared by Ministerial Order and include, revoke and replace provisions for regional and district plans.
The Department consulted councils, relevant state government agencies, industry groups and peak bodies on the policies and priorities in the draft Plan. The draft Plan is open for public feedback during the exhibition period, providing further opportunity for people to have their say.
Yes. The draft Plan is open for public feedback during the exhibition period. You can have your say by completing the Sydney Plan survey or making a formal submission on the NSW Planning Portal.
Sydney region councils are expected to align their local planning with the priorities and policy responses in the Sydney Plan. This will be done through their local strategic planning and Local Environmental Plans (LEP) to ensure consistency in land use planning across Sydney.
The Sydney Plan identifies indicative employment and residential land use ranges for CBD, commercial and retail centres. The land use ranges are intended to guide councils when they are undertaking precinct-level centre strategic planning, helping them to determine what may be the appropriate land use split across the broader precinct.
The Sydney Plan provides jobs guidance for the Sydney region, Urban Development Program (UDP) areas and employment centres. Jobs guidance identifies the expectations around what is likely, achievable and desirable in terms of employment across Sydney. It reflects an economic vision where people live closer to their workplaces and can access jobs more easily, while remaining realistic and achievable. The jobs guidance intends to facilitate strategic planning, enable businesses to make investment decisions and target specific workforce, and support the distribution of well-located jobs.
The Sydney Plan applies the draft Statewide Policy for Industrial Lands by categorising all industrial lands in the Sydney region.
The Sydney Plan draws on a range of data sources and climate modelling, especially NARCLiM2.0, to analyse likely scenarios and impacts of climate change on the region. Understanding the challenges and risks of a warming climate has influenced many strategic directions in the Plan, including:
- the proposed draft urban footprint and broad settlement pattern
- areas proposed for housing growth
- directions on managing natural hazards, including heat
- directions for open space and the blue-green grid.
The NSW Government has set a target to increase tree canopy to 40% by 2036, recognising that health and cooling benefits begin to be realised when canopy levels reach 30%. As part of this, councils will be responsible for setting canopy and urban greening targets for both public and private land in their local area. The Department will continue to support councils in developing their targets, and is preparing an Urban Greening Guide for councils, industry and stakeholders to support early consideration of urban greening in land use planning.
The Department will exhibit the draft Plan until 27 February 2026. Once the exhibition is closed, the Department will review feedback before finalising the Sydney Plan. A final Plan will be released later in 2026.
A New Approach to Strategic Planning: Discussion Paper
The new approach to strategic planning proposed in the Discussion Paper sets out how the NSW Government wants to guide and manage population and economic growth across the state over the next 20 years. It introduces a clear framework of strategic plans, policies and guidance that shape how land use and development decisions are made, balancing social, economic and environmental priorities.
The current strategic planning framework includes regional and local strategic planning requirements and is underpinned by the Environmental Planning and Assessment Act 1979 (EP&A Act).
Currently, different areas of NSW follow different strategic planning requirements. For example, Sydney, Illawarra–Shoalhaven, and the Lower Hunter and Central Coast operate under a separate structure to the rest of the state. This has created a complex and sometimes duplicative system, with overlapping plans covering similar content but serving different purposes.
The new approach will continue to simplify and unify the strategic planning framework across NSW. A consistent approach will make it easier for councils to prepare streamlined, locally relevant plans that align with state and regional priorities. This will reduce duplication, improve coordination between land use and infrastructure planning, and support more transparent and consistent decision-making.
The new approach proposes a simpler, three-tiered system to guide land use planning across NSW. It introduces a State Land Use Plan to set clear statewide priorities, supported by regional plans that guide growth and infrastructure, and Local Strategic Planning Statements (LSPSs) that lead local implementation.
The new approach will:
- apply a consistent structure across NSW to improve coordination and make the system easier to understand and use
- consider the future role of existing layers, recognising the maturity and coverage of LSPSs across NSW
- clarify the role of council-led strategies, such as housing or employment plans, in supporting LSPSs and aligning with state and regional directions
- encourage consolidation of local strategies to reduce duplication and streamline planning efforts.
This approach supports more integrated, transparent and timely planning decisions, particularly for land use, housing and infrastructure.
The changes to strategic planning are separate from, but complement, the statutory planning reforms enacted through the Environmental Planning and Assessment (Planning System Reforms) Bill 2025.
The new approach to strategic planning focuses on setting long-term land use priorities and aligning strategic planning across state, regional and local levels to secure a sustainable future pipeline of homes and employment land.
The statutory reforms focus on modernising the Environmental Planning & Assessment Act (EP&A Act) to streamline development assessment, reduce red tape, and accelerate housing delivery.
Together with other reforms, these changes form part of the Government’s program to simplify and streamline the NSW planning system.
The new approach is designed to make planning decisions more consistent, timely and better aligned with infrastructure and investment. Setting clear statewide priorities and policy responses through the State Land Use Plan, the system will help focus planning where growth is most needed.
It will also improve how rezoning and development decisions are made by identifying critical knowledge gaps and making room for faster, more responsive updates. This means councils, agencies and developers can work with greater certainty, and effort can be directed toward the places that will have the biggest impact.
The new approach aims to create a planning system that is more coordinated, evidence-based and agile, helping to deliver housing and jobs where and when they’re needed.
Stakeholder feedback shows that existing regional plans are often too broad, covering issues beyond core land use planning and including too many objectives and actions. This has made it harder to focus on the priorities that need a clear planning response.
The proposed State Land Use Plan will:
- Set 7 consistent land use priorities across NSW, focusing on areas where land use planning can make a real difference, such as housing, jobs, infrastructure, environment and liveability.
- Include policy responses and technical guidance to help councils and agencies make consistent, evidence-based decisions and balance competing priorities more effectively.
This will provide a clear and coordinated foundation for planning across the state.
The State Land Use Plan is primarily for councils, state agencies, infrastructure providers and planning practitioners. It will provide clear direction to guide land use decisions and align planning efforts across government.
By setting consistent priorities and policy responses, the State Land Use Plan will support better coordination of land use, infrastructure and investment. It will also give stakeholders greater clarity and confidence in planning decisions.
While it will mainly be used by those within the planning system, the State Land Use Plan also helps communicate the Government’s land use priorities to the broader community, promoting transparency and understanding.
The State Land Use Plan will improve how infrastructure is planned and delivered by setting clear land use priorities and providing direction across all levels of government.
It will support better coordination by:
- aligning land use decisions with infrastructure investment and service delivery
- providing clear criteria to guide rezoning and investment decisions
- outlining roles and responsibilities across state and local government
- embedding mechanisms to ensure planning and infrastructure are more closely linked.
By creating a shared basis for decision-making, the State Land Use Plan will help make infrastructure delivery more timely, transparent and aligned with where growth is planned.
The State Land Use Plan will be finalised in 2026.
The proposed changes to the State’s planning regions are outlined in A New Approach to Strategic Planning: Discussion Paper. The proposed changes better reflect current priorities and include:
- Illawarra Shoalhaven – proposed to incorporate Wingecarribee LGA into the existing 4 LGAs of the region.
- Lower Hunter Central Coast – proposed to consolidate into a single region comprising six LGAs.
- Regional NSW – proposed to be a single planning region covering 84 LGAs and organised by sub-regions for planning purposes.
These changes will guide the development of new regional plans for these proposed planning regions. The plans will respond to emerging priorities such as housing supply, infrastructure needs, economic development, energy transition and post-mining land use.
The proposed changes to planning regions respond to challenges in NSW planning at the state, regional and local levels. These challenges include:
- differing boundaries across agencies, which make it hard to coordinate planning
- fragmented governance and collaboration, which slows decision-making
- misaligned data and evidence, which reduce planning efficiency
- overlapping and unaligned plans, which lead to confusion and inefficiency
- regions that don’t reflect how communities function
- limited flexibility to respond to emerging challenges
- inconsistent delivery of shared priorities, making long-term outcomes harder to achieve.
The proposed new planning regions aim to better reflect how communities function, improve coordination across government, and support more consistent and effective planning and delivery.
The new regional plans for regions outside of Sydney will be delivered progressively over the next few years. The Department is currently gathering information, including mapping, infrastructure audits and settlement planning to inform the new regional plans. This information will shape strategic responses in the new regional plans and broader NSW Government decisions and programs.
The new regional plans for regions outside of Sydney will be delivered progressively over the next few years. The Department is currently gathering information, including mapping, infrastructure audits and settlement planning to inform the new regional plans. This information will shape strategic responses in the new regional plans and broader NSW Government decisions and programs.
Local priorities will be considered in the development of new regional plans by:
- Including subregional profiles and aggregated local evidence in Regional NSW plans.
- Using localised data to inform broader planning responses.
- Engaging councils early so local strategies shape each regional plan from the ground up.
This ensures regional plans reflect local needs while aligning with state priorities.
There will be a clear line of sight from the State Land Use Plan at the state level through to Local Strategic Planning Statements (LSPSs) at the local level. The Plan will set out the vision and statewide land use priorities, which will be applied spatially in regional plans.
LSPSs should then reflect regional directions and deliver local responses that align with state priorities. This will support a more coordinated and consistent approach across all levels of the planning system.
The Department is reviewing the LSPS framework, with the review expected to be completed in 2026. Once finalised, councils should update their LSPS in line with the updated framework and its requirements.
In the meantime, councils are expected to continue implementing the outcomes of their existing LSPSs, local housing strategies, and the Statement of Expectations. This will help maintain strategic direction and continuity while the new framework is being developed.
A New Approach to Strategic Planning: Discussion Paper is being released alongside the draft Sydney Plan and the Statewide Policy for Industrial Lands.
The Discussion Paper proposes a new framework that simplifies strategic planning into three tiers — state, regional and local. It also introduces draft statewide land use priorities to guide all regional and local strategic plans.
The draft Sydney Plan shows how these priorities can be applied within a regional strategic plan, while the Statewide Industrial Lands Policy provides detailed guidance on planning for employment and industrial land across NSW.
The Department consulted councils and state agencies during early development, focusing on key issues, priorities and opportunities to improve the system. This consultation focused on key issues, priorities and opportunities to improve how the system functions.
The release of the Discussion Paper now provides a broader opportunity for councils, agencies, industry and the community to give feedback on the proposed changes before the framework is finalised.
Yes. You can provide feedback in response to the Discussion Paper by completing the A New Approach to Strategic Planning survey or by making a formal submission on the NSW Planning Portal during the exhibition period.
The Discussion Paper will be open for feedback from 10 December 2025 to 27 February 2026. Following the exhibition period, the Department will review all feedback received.
This feedback will help inform the development of the draft State Land Use Plan and guide further updates to the strategic planning framework.
Statewide Industrial Lands Policy
The draft Statewide Policy for Industrial Lands is a new framework that aims to plan, secure and manage the supply of industrial land across NSW by clearly categorising industrial land. The draft policy proposes a consistent approach for the management of industrial land and supports future job creation and economic growth in key industries important to our communities.
Industrial land is under increasing pressure from competing land uses. Rising demand, limited supply and population growth mean NSW needs a clear framework to protect and optimise industrial land. The policy ensures land designated for industrial uses is properly planned for and managed.
The draft Statewide Policy for Industrial Lands:
- supports better coordination between state and local governments
- helps make sure that planning decisions are responsive to the scale and function of each industrial area
- supports government priorities like housing and economic growth.
This is a statewide policy that will apply to industrial lands across NSW, including:
- lands defined by the Department’s Employment Land Development Monitor (ELDM). Note: for the draft policy, all employment lands will be referred to as “industrial lands”
- industrial land that is not currently monitored through the ELDM but may be monitored in the future.
The draft Sydney Plan applies the draft Statewide Policy for Industrial Lands by categorising all industrial lands in the Sydney region (refer to draft response 8 of the draft Sydney Plan). You can provide feedback on this categorisation as part of your response to the draft Sydney Plan via the NSW Planning Portal.
Other industrial lands across NSW will be categorised through the relevant regional planning process and exhibited in early 2026.
Industrial lands are classified into 3 categories:
- State significant: Critical national and state infrastructure, like international ports, airports or intermodals, and directly linked areas that are crucial to national or state supply chains
- Regionally significant: Large, diverse areas that are important to a region’s economy, and usually support a wide range of industry and employment
- Locally significant: Smaller areas serving local business and community needs.
The draft policy identifies three categories of industrial lands based on:
- proximity to major infrastructure
- economic contribution and output
- employment generation
- scale
- strategic importance.
The process uses data and consultation between the Department, other government agencies, local councils and stakeholders.
Categorisation helps councils and government apply the appropriate level of protection, investment or flexibility for each site. Categorisation determines how lands are protected from encroachment and the level of land use flexibility that may be permitted for alternative uses, for example:
- State significant: strong protection against encroachment from incompatible uses, and alternative uses are not supported unless through a state directive
- Regionally significant: strong protection against encroachment from incompatible uses while providing a pathway for alternative employment uses. Non-employment uses are not supported unless through a state directive
- Locally significant: recognises the importance of industrial lands serving local communities and providing a pathway for alternative employment. Where those uses are not viable, non-employment uses may be considered through a strategic planning process and rezoning.
Two technical notes support the draft policy, providing additional guidance for consideration when implementing the policy.
- Locally significant industrial lands (Technical Note 1) – provides guidance on setting the strategic intent for locally significant industrial lands.
- Alternative uses (Technical Note 2)– provides guidance on the key matters for consideration when considering proposals for alternative land uses.
The draft policy recognises industrial lands as critical enablers of housing supply and affordability in NSW. Industrial lands support essential sectors such as construction, manufacturing, logistics and freight, which underpin the housing construction pipeline. By protecting and managing industrial land supply, the policy helps prevent cost pressures that arise when industrial land becomes scarce or expensive - including increased housing prices. This coordinated land use approach ensures jobs and industries are located near homes, supporting both economic growth and affordable housing across NSW.
Councils will play a central role in implementing the policy. They will be responsible for applying the categorisation framework in their local planning, managing competing land uses, and preparing planning proposals consistent with the policy. Councils must balance protecting industrial land with accommodating housing and other community needs, especially on locally significant industrial lands where alternative uses may be appropriate. The policy provides greater certainty and clear processes to help councils coordinate infrastructure and create sustainable employment precincts that support local economies.
Landowners will have clearer direction on how their land can be used now and in the future.
Owners of land classified as state or regionally significant industrial land will generally see strong protection for industrial uses, with limited scope for alternative uses.
Owners of locally significant industrial lands may be able to explore alternative or mixed employment uses, subject to strategic justification and planning processes.
The policy promotes greater use of industrial sites, encouraging innovative, higher productivity uses.
You can read the full draft policy, technical notes and draft categorisation for the Sydney region on the NSW Planning Portal, or contact the Department of Planning, Housing and Infrastructure.
The Retain and Manage Policy established under existing region plans, such as the Greater Sydney Region Plan: A Metropolis of Three Cities (2018), continue to apply until the new statewide policy is finalised and categorisation has been implemented. For example, once finalised, the Sydney Plan will replace the Greater Sydney Region Plan: A Metropolis of Three Cities (2018) and associated district plans.
Ministerial Direction Focus area 7: Industry and Employment also continues to apply to any planning proposals seeking land use change for industrial lands.
The Employment Land Development Program (ELDP) is an ongoing initiative by the Department to improve the supply of development-ready employment land, focusing on key industrial sectors, such as freight and logistics.
The program identifies where intervention is needed on state or regionally significant categorised industrial land that may be underutilised but has significant potential for growth.
Other priorities being progressed under the Industrial Lands Action Plan will support the ongoing implementation of the Statewide Policy, including planning and policy interventions and the creation of the ELDP to manage industrial land supply and coordinate infrastructure investment.
More information on the Employment Lands Development program is available on the NSW Planning Portal.
The Department will review feedback received during the exhibition period before finalising the policy. The policy is expected to be finalised in 2026.