The Growth Centres Program plays an important role in delivering much-needed housing in the north-west and south-west growth areas of western Sydney, while protecting some of the city's best remaining biodiversity for generations to come.
The program enables faster development approvals in 6 western Sydney council areas, including Blacktown, Hawkesbury and The Hills in the north-west, and Camden, Campbelltown, and Liverpool in the south-west. This is achieved through biodiversity certification, which removes the need for individual biodiversity assessment in certified areas when development applications are lodged. The program applies to approximately 27,000 ha of land and has already delivered almost 100,000 homes. It is expected to support the delivery of an additional 150,000 new homes by 2041.
The program also generates revenue for the NSW Government to buy land for new reserves and secure permanent conservation of private land, offsetting the impacts of development on biodiversity through the Growth Centres Biodiversity Offset Program.
The program requires the permanent protection of 2,000 ha of existing native vegetation within the growth areas and the protection of at least 2,400 ha of either Cumberland plain woodland or other grassy woodland communities outside the growth areas.
The biodiversity certification applies to land identified in the North West Growth Centre and the South West Growth Centre. By addressing environmental impacts upfront, it provides greater certainty for developers and improved conservation outcomes for the community.
Program updates
The NSW Government is ensuring that the program continues to support housing delivery while protecting the environment in these growing communities. In 2026, we've updated 2 key program components, the biodiversity certification and the program's cost-recovery arrangements.
Biodiversity certification
Biodiversity certification is an upfront approval that plans for development and conservation at the same time by identifying where development can occur and how impacts on plants, animals, and ecosystems will be avoided or managed.
The Minister for the Environment has extended the biodiversity certification to 30 June 2035, providing continued certainty for housing delivery while protecting important environmental areas.
Learn more about the biodiversity certification extension.
Strategic biodiversity component
A strategic biodiversity component will apply to the Growth Centres from 1 July 2026 and provide a dedicated funding pathway to deliver key biodiversity conservation alongside new housing.
The strategic biodiversity component is a charge that applies to certain development on land that benefits from the biodiversity certification.
As part of these changes commencing 1 July 2026, new development in western Sydney will no longer be required to pay Special Infrastructure Contributions as these have been replaced by the Housing Productivity Contribution.
Learn more about the Housing Productivity Contribution transition and strategic biodiversity component.
To provide cost certainty during the National Housing Accord period and support continued housing delivery, the strategic biodiversity component rate for residential development will be set at $1,230 per dwelling for the first 3 years, until 30 June 2029. Separate rates apply for industrial and commercial development.
The NSW Government is also investing $53 million over the next 3 years in important biodiversity measures. This investment supports delivery of the program's biodiversity commitments, including the ongoing protection of important bushland and habitat.
Frequently asked questions
Growth Centres
The program, including the funding arrangements, have been reviewed by the Department of Planning, Housing and Infrastructure and the Department of Climate Change, Energy, the Environment and Water. The primary change is the replacement of the Special Infrastructure Contributions framework with a strategic biodiversity component to the housing and productivity contribution framework. This applies to development applications lodged from 1 July 2026. Find more information around the savings and transitional arrangements under the housing and productivity contribution.
The NSW Government committed to replacing the Special Infrastructure Contributions that previously funded the Growth Centres Program by 1 July 2026. This timing aligned with a periodic review of the program's biodiversity certification, ensuring the program is achieving the relevant biodiversity outcomes.
Unlike the existing framework, the proposed strategic biodiversity component ensures contributions are subject to indexation and allocates them more directly to delivering biodiversity measures.
The implementation of the strategic biodiversity component in the Growth Centres will ensure funding is available to deliver the program's biodiversity measures while supporting housing delivery in western Sydney.
The changes ensure the biodiversity certification will continue to apply in western Sydney. This removes the need to conduct individual biodiversity assessments in certified areas, providing certainty for future housing and other development, while reducing delays and costs.
The NSW Government committed to deliver conservation outcomes for a range of matters of national environmental significance within the Growth Centres. This includes:
- protecting at least 2,400 ha of Cumberland Plain Shale Woodlands and Shale Gravel Transition Forest (CPW) outside the Growth Centres
- protecting at least 998 hectares of CPW by bringing approximately 1,000 ha of identified high biodiversity value conservation areas within the Growth Centres into public ownership under the program
- maintaining a total of 2,000 ha of existing native vegetation within the Growth Centres (inclusive of the above protection of CPW)
- a range of other supporting commitments, including regular review and consistency reporting, additional offset specifications for infrastructure providers, and prescribed survey requirements for certain species in a range of locations.
The program has protected over 900 ha of native vegetation and threatened species habitat through Biodiversity Stewardship Agreements and reserves. These sites protect threatened ecological communities, including critically endangered Cumberland Plain Woodland, and provide valuable habitat for threatened animal and plant species. More information on the progress of the biodiversity commitments is available.
To continue to provide strong environmental outcomes, the NSW Government is investing $53 million over the next 3 years to protect important bushland and habitat. This investment is in addition to the funds collected through the strategic biodiversity component of the Housing and Productivity Contribution, with investment made in biodiversity measures outlined as part of the Growth Centres Program approval.
Biodiversity certification extension
The Minister for the Environment has updated the relevant biodiversity measures and extended the biodiversity certification until 30 June 2035. The extension provides continued certainty for housing delivery while protecting important biodiversity areas. More information about the biodiversity certification order and extension is available.
Funding arrangements
From 1 July 2026, the Housing and Productivity Contribution framework replaces the Special Infrastructure Contributions in the Growth Centres. A strategic biodiversity component also applies to all certified land in the Growth Centres, separating development contributions which will go towards delivering biodiversity measures. More information about the introduction of the Housing and Productivity Contribution and strategic biodiversity component is available.
The strategic biodiversity component applies to new residential, commercial or industrial development that benefits from the Growth Centres biodiversity certification. The timing of payment depends on the type of development, but generally it will occur prior to commencement of works. Some exceptions apply – see further detail at Housing and Productivity Contribution.
To provide cost certainty during the National Housing Accord period and help incentivise building new homes sooner, the strategic biodiversity component rate for residential development has been set at $1,230 per dwelling until 30 June 2029.
The following rates apply and will continue to be indexed under the Housing and Productivity Contribution settings:
- Residential development (per dwelling/dwelling lot) – $1,230
- Commercial development (per m2 of new floor area) – $48
- Industrial development (per m2 of new floor area) – $24.
Ahead of 2029, the NSW Government will review the program's ongoing funding arrangements in line with cost-recovery principles, to identify adjustments to the strategic biodiversity component rates from 1 July 2029. This will ensure adequate funding arrangements remain in place to deliver the program's biodiversity commitments into the future and maintain biodiversity certification.
The NSW Government committed to replacing the Special Infrastructure Contributions that previously funded the Growth Centres Program by 1 July 2026. This timing aligned with a periodic review of the program's biodiversity certification, ensuring the program is achieving the relevant biodiversity outcomes.
Unlike the existing framework, the proposed strategic biodiversity component ensures contributions are subject to indexation and allocates them more directly to delivering biodiversity measures.
The implementation of the strategic biodiversity component in the Growth Centres will ensure funding is available to deliver the program's biodiversity measures while supporting housing delivery in western Sydney.