Main page › Guides › Dual occupancy rules NSW
Dual occupancy rules and approvals in New South Wales
| Permitted | With consent in R2 low density residential zones state-wide since 1 July 2024[1] |
|---|---|
| Minimum lot size | 450 m² (non-refusal standard, low and mid-rise areas)[2] |
| Minimum lot width | 12 m[2] |
| Maximum height | 9.5 m[2] |
| Maximum floor space ratio | 0.65:1[2] |
| Subdivision | R1, R2 and R3 only — min 225 m² and 6 m width per lot[2] |
| Instrument | State Environmental Planning Policy (Housing) 2021[1] |
| *The standards apply inside mapped low and mid-rise housing areas. Permissibility in R2 is state-wide; the standards are not. | |
In New South Wales a dual occupancy, two dwellings on one lot, has been permitted with consent in R2 low density residential zones state-wide since 1 July 2024.[1] In low and mid-rise housing areas the non-discretionary standards include a minimum lot size of 450 m², a minimum lot width of 12 m, a maximum height of 9.5 m and a maximum floor space ratio of 0.65:1, and subdivision is allowed in R1, R2 and R3 zones into lots of at least 225 m² and 6 m wide.[2]
A dual occupancy is two dwellings on one lot. In New South Wales it sits under the State Environmental Planning Policy (Housing) 2021, and the rules changed substantially across 2024 and 2025 — first by making dual occupancy permissible in the ordinary suburban house zone everywhere in the state, then by setting standards that councils cannot refuse against inside mapped catchments near town centres and stations.
The distinction between those two changes is the thing most summaries get wrong, and it is the thing that determines whether the numbers below apply to your block.
Two stages, two different things §
Stage 1 commenced on 1 July 2024. It made dual occupancies and semi-detached dwellings permitted with consent in R2 low density residential zones across all of New South Wales.[1] This is a permissibility change. It means council must assess an application rather than reject it as a prohibited use. It does not import any particular lot size, height or floor space ratio.
Stage 2 commenced on 28 February 2025. It introduced the non-discretionary development standards, and it applies only inside low and mid-rise housing areas.[1]
If your property is in an R2 zone but outside a low and mid-rise housing area, a dual occupancy is permissible, but the standards that apply are your council's — which may set a minimum lot size well above 450 m².
What counts as a low and mid-rise housing area §
Residential zoned land within 800 metres walking distance of a nominated town centre or the entrance of a nominated train, metro or light rail station, across metropolitan Sydney, the Central Coast, the Illawarra-Shoalhaven and the Lower Hunter regions.[1]
Walking distance is measured from the site to the nearest station entrance or the nearest edge of the mapped town centre along a publicly accessible walking route, and is defined in the legislation as the shortest distance that may be safely walked using public footpaths and pedestrian crossings as far as reasonably practicable.[1] It is not a radius drawn on a map, which is why a property 700 metres away as the crow flies can fall outside.
Where part of a site sits inside a low and mid-rise housing area, the provisions apply to the whole site.[1]
The standards §
Inside those areas, in the R1, R2, R3 and R4 zones where dual occupancy is permitted:[2]
| Standard | Value | Source |
|---|---|---|
| Minimum lot size | 450 m² | NSW DPHI[2] |
| Minimum lot width | 12 m | NSW DPHI[2] |
| Maximum floor space ratio | 0.65:1 | NSW DPHI[2] |
| Maximum building height | 9.5 m | NSW DPHI[2] |
| Car parking | 1 per dwelling | NSW DPHI[2] |
| Subdivision — minimum lot area | 225 m² | NSW DPHI[2] |
| Subdivision — minimum lot width | 6 m | NSW DPHI[2] |
A floor space ratio of 0.65:1 on a 450 m² lot allows roughly 292 m² of gross floor area across both dwellings, before any bonus. Height of 9.5 metres accommodates two storeys comfortably.
How non-refusal standards work §
Non-discretionary development standards, also called non-refusal standards, prevail over an equivalent standard in a local environmental plan or development control plan that is more onerous. If the proposal complies with the non-discretionary standard, the consent authority cannot refuse the application on the ground that it does not comply with the local standard.[2]
They apply where they are more generous than the local controls. Where a local environmental plan permits something more generous — a taller building, for instance — the local plan applies instead.[1] Every other planning control continues to operate normally, so meeting the seven numbers above does not mean an automatic approval. Setbacks, landscaping, stormwater, tree canopy, privacy and overshadowing are all still assessed.
Most applications where the policy applies remain local development assessed by the relevant council.[1]
Subdivision — the part that distinguishes it §
Subdivision of a dual occupancy is available in the R1, R2 and R3 zones, at a minimum of 225 m² and 6 metres of width per resulting lot.[2] It is not available in R4 under these standards.
This is the structural difference from a granny flat. A lot carrying a secondary dwelling cannot be subdivided at all, and the development can only produce one principal and one secondary dwelling.[3] If separating the two homes onto separate titles matters to you, the dual occupancy path is the only one of the two that reaches it. We set the two options against each other in dual occupancy or granny flat.
Complying development §
The Low-Rise Housing Diversity Code allows well-designed dual occupancies, manor houses and terraces to proceed as complying development where the development is permitted with consent under an environmental planning instrument. Because the low and mid-rise policy makes dual occupancies permitted with consent in more places, the complying development pathway is now available for them in areas where they are newly permitted — provided the proposal meets the development standards and requirements in that code.[1]
For a factory-built project this matters more than it does for a conventional builder. A complying development certificate produces a defined approval timeline, and a defined approval timeline is what allows a manufacturer to commit to a production slot. See the approval process for a modular home and approval pathways for prefabricated and modular homes in New South Wales.
Excluded land §
The policy does not apply to sites affected by certain hazards and constraints. The department lists bushfire prone land, certain flood prone land, coastal wetlands, littoral rainforest and coastal vulnerability areas; land near dangerous goods pipelines; land subject to high aircraft noise; land within a Transport Oriented Development area; land that constitutes or contains a heritage item; the Hawkesbury, Blue Mountains and Wollondilly local government areas, on the basis of bushfire, flooding and limited evacuation routes; and the Bathurst local government area, on the basis that there is no suitable R2 land.[1]
Exclusion from the low and mid-rise standards does not necessarily mean a dual occupancy is prohibited — the Stage 1 permissibility change in R2 is separate. It means the non-refusal standards are not available to you, so your council's controls govern.
Affordable housing bonus §
The in-fill affordable housing bonus provisions in the Housing SEPP continue to apply on land where the low and mid-rise policy applies, and operate on top of the non-discretionary standards. Built form bonuses of up to 30% are available for development that provides at least 10% affordable housing, based on the proportion of affordable dwellings provided.[1]
What is not covered here §
This page does not describe manor houses, terraces, multi-dwelling housing, residential flat buildings or shop-top housing, each of which carries its own standards under the same policy.
It cannot tell you whether a specific address is inside a low and mid-rise housing area. The department publishes indicative maps but states that they are not legislative, that they cannot account for individual property constraints or local walking networks, and that they should not be used to make planning decisions — the requirements in the legislation have to be checked against the specific property.[1]
It does not cover the Transport Oriented Development program, which applies to different land and is expressly excluded from this policy.[1] It does not cover council-level controls, which vary by local government area and continue to apply. It does not cover construction cost, contributions, or the survey and conveyancing steps involved in registering a new lot. And it does not cover dual occupancy rules in any other state or territory; those are not addressed by the sources compiled here and the NSW figures should not be applied to them.
Sent to info@modularlivingaustralia.com.au and handled by a person. See Privacy.
References §
- NSW Department of Planning, Housing and Infrastructure — Low and Mid-Rise Housing Policy, frequently asked questions — Stage 1 commenced 1 July 2024, permitting dual occupancies and semi-detached homes in R2 low density residential zones across NSW; Stage 2 commenced 28 February 2025. Defines low and mid-rise housing areas, describes the excluded land, explains how non-discretionary standards interact with local plans, confirms councils remain the consent authority for most applications, and sets out the complying development position and the affordable housing bonus. planning.nsw.gov.au/the-planning-system/housing/low-and-mid-rise-housing-policy/frequently-asked-questions
- NSW Department of Planning, Housing and Infrastructure — Low and Mid-Rise Housing Policy, summary of key provisions — non-discretionary development standards for dual occupancies in low and mid-rise housing areas: minimum lot size 450 m², minimum lot width 12 m, maximum floor space ratio 0.65:1, maximum height 9.5 m, one car space per dwelling, subdivision in R1, R2 and R3 at minimum 225 m² and 6 m width per lot. Also states the policy does not apply to sites affected by certain hazards and constraints. planning.nsw.gov.au/policy-and-legislation/housing/low-and-mid-rise-housing-policy/summary-of-key-provisions
- NSW Department of Planning, Housing and Infrastructure — Secondary dwellings under the Housing SEPP — a lot on which a secondary dwelling is constructed cannot be subdivided, and the development can only result in one principal dwelling and one secondary dwelling on the site. planning.nsw.gov.au/the-planning-system/housing/housing-sepp/secondary-dwellings
Figures are as published by the sources above at their respective dates and are paraphrased summaries, not verbatim reproductions. Verify current pricing and rules directly with builders, lenders and planning authorities.