regulation Planning and zoning 13 min read

SEPPs in NSW: what they are and when they affect your project

NSW State Environmental Planning Policies for builders: SEPP hierarchy, 11 consolidated SEPPs, Housing Code, granny flat rules, and low-rise housing reforms.

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TL;DR

SEPPs are state-level NSW planning rules that sit above your council’s LEP in the hierarchy: where a SEPP and an LEP conflict, the SEPP prevails (EP&A Act 1979 s 3.28). The two SEPPs that hit most residential projects are the Codes SEPP 2008 (the Housing Code behind every CDC, 20-day turnaround on a compliant R1-R4 job) and the Housing SEPP 2021 (granny flats in R1-R5, plus the low/mid-rise housing reforms that opened dual occupancies state-wide from 1 July 2024). NSW consolidated 45 old SEPPs into 11 in 2021 and 2022. The Codes SEPP, BASIX 2004, and SEPP 65 were not consolidated and remain in force unchanged. Pull your constraints via the NSW Planning Portal Spatial Viewer before design starts: overlays from the Resilience and Hazards SEPP (flood, coastal, contaminated land) or the Biodiversity and Conservation SEPP (vegetation clearing) can knock a job out of CDC and into DA territory.

In plain English

A State Environmental Planning Policy (SEPP) is a planning instrument made by the NSW Government under the Environmental Planning and Assessment Act 1979 (NSW). SEPPs apply state-wide (or to specified land) and address issues that go beyond the boundaries of a single council area. Unlike a council’s Local Environmental Plan (LEP), which applies only to that council’s area, a SEPP can override the LEP’s rules on the same matter.

In 2021-2022, the NSW Government consolidated 45 separate SEPPs into 11 theme-based policies, making it easier to find the relevant rules. Three SEPPs were not consolidated: the Codes SEPP 2008, BASIX 2004, and SEPP 65 (Design Quality). These remain in force unchanged (verified 2026-05-09, planning.nsw.gov.au).

What it requires

The SEPP hierarchy

Under s 3.28 of the EP&A Act, a SEPP generally prevails over an LEP to the extent of any inconsistency. A SEPP can also expressly state how conflicts with other instruments are resolved (verified 2026-05-09, legislation.nsw.gov.au).

In practice, this means:

  • A SEPP can permit development that an LEP prohibits in a zone (the Housing SEPP granny flat rules are a common example).
  • A SEPP can impose additional controls on top of what the LEP requires (the Resilience and Hazards SEPP adds rules for flood and coastal land that sit above local DCP provisions).
  • A SEPP can set the approval pathway for a class of development regardless of what the LEP says (the Codes SEPP 2008 sets the CDC pathway for the whole state).

DCPs (Development Control Plans) sit below LEPs and SEPPs. A DCP cannot override a SEPP or an LEP.

The 11 consolidated SEPPs (and the 3 that weren’t)

The full current SEPP framework for residential work in NSW:

SEPPCommencedWhat it does for residential projects
Codes SEPP 2008 (not consolidated)27 Feb 2009The Housing Code. Sets the CDC approval pathway for new homes, additions, and alterations on R1-R4 and RU5 land. 20-day determination target. See below.
BASIX 2004 (not consolidated)2004Mandatory energy and water certificate for new dwellings and alterations/additions over $50,000. Required before lodging a DA or CDC.
SEPP 65 (not consolidated)2002Design quality for residential apartment development of 3+ storeys and 4+ dwellings. Triggers SEPP 65 design review panels.
Housing SEPP 202126 Nov 2021Secondary dwellings (granny flats), boarding houses, seniors housing, affordable housing, low/mid-rise housing reforms, short-term rental accommodation.
Planning Systems SEPP 20211 Mar 2022Identifies state-significant development (SSD) and state-significant infrastructure (SSI). Rare on residential work; applies to large-scale developments assessed by the Department, not council.
Biodiversity and Conservation SEPP 20211 Mar 2022Vegetation clearing rules for non-rural areas. Applies if tree or vegetation removal at your site triggers the biodiversity offsets scheme or a council vegetation permit.
Resilience and Hazards SEPP 20211 Mar 2022Coastal zone management, contaminated land remediation, flooding and hazardous development. Adds planning controls on flood-prone, coastal, and contaminated sites.
Transport and Infrastructure SEPP 20211 Mar 2022Roads, railways, hospitals, utilities corridors. Relevant when building near state infrastructure.
Industry and Employment SEPP 20211 Mar 2022Employment land in Western Sydney. Rarely relevant to residential builders.
Resources and Energy SEPP 20211 Mar 2022Mining and extractive industry. Not relevant to residential work.
Primary Production SEPP 20211 Mar 2022Agricultural land and rural development. Relevant only on rural or rural-residential lots.
Four Precincts SEPPs 20211 Mar 2022Precinct-specific planning for Eastern Harbour City, Central River City, Western Parkland City, and Regional areas. Check if your site is in a SEPP precinct via the Planning Portal.

Source: NSW Department of Planning, Housing and Infrastructure (verified 2026-05-09, planning.nsw.gov.au).

The Codes SEPP: the Housing Code behind every CDC

The State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 is the legal backbone of every CDC approval in NSW. It applies across R1, R2, R3, R4, and RU5 zones (verified 2026-05-09, planningportal.nsw.gov.au).

Under the Housing Code (Part 3 of the Codes SEPP):

  • New single or two-storey homes, home alterations and additions, detached structures (garages, sheds) can all be approved as CDC.
  • Maximum building height: 8.5 m from existing ground level.
  • Minimum lot size: 200 m2 with 6 m width at the building line.
  • Side setbacks start at 0.9 m (up to 4.5 m building height), scaling up proportionally for taller structures.
  • A CDC under the Housing Code targets a 20-day determination by the certifier, compared with roughly 4 months for a residential DA.

The Codes SEPP also sets the Exempt Development rules: minor works listed there need no approval at all.

The Housing SEPP 2021: granny flats and low/mid-rise reforms

The State Environmental Planning Policy (Housing) 2021 consolidated the old SEPP provisions on boarding houses, seniors housing, social housing, and secondary dwellings into one instrument (verified 2026-05-09, planning.nsw.gov.au).

Secondary dwellings (granny flats)

The Housing SEPP permits a secondary dwelling on any lot zoned R1, R2, R3, R4, or R5 that has an existing or proposed principal dwelling, regardless of what the council’s LEP land use table says about secondary dwellings in that zone. Key rules for CDC approval:

  • Minimum lot size: 450 m2 (if below 450 m2, the secondary dwelling must be entirely within the existing house to proceed as CDC).
  • A single principal dwelling and one secondary dwelling per lot only.
  • No additional parking is required by the SEPP (though council DCP may impose its own standards).
  • A new principal dwelling and a secondary dwelling can be approved under a single CDC.
  • The lot cannot be subdivided to separate the secondary dwelling.

Source: NSW Planning Portal (verified 2026-05-09, planning.nsw.gov.au).

Low and mid-rise housing reforms

Through amendments to the Housing SEPP 2021, the NSW Government has progressively increased permissible housing density near transport and town centres:

  • Stage 1 (commenced 1 July 2024): Dual occupancies and semi-detached dwellings permitted with consent in R2 zones state-wide. Standards: max height 9.5 m, max FSR 0.65:1, minimum lot 450 m2 (verified 2026-05-09, planning.nsw.gov.au).
  • Stage 2 (commenced 28 February 2025): Expanded housing types (terraces, multi-dwelling housing, residential flat buildings) permitted in R2 and R3 zones within 800 m walking distance of 171 nominated town centres and train/light rail stations across Greater Sydney, Central Coast, Lower Hunter/Newcastle, and Illawarra-Shoalhaven.

These provisions override restrictive LEP zone controls that previously prohibited these housing types in R2 zones.

The Resilience and Hazards SEPP 2021: flood, coastal, contaminated land

The State Environmental Planning Policy (Resilience and Hazards) 2021 (commenced 1 March 2022) covers three main areas relevant to residential builders:

  1. Coastal zone: Land use planning within the coastal management areas defined under the Coastal Management Act 2016. Applies to the coastal zone, coastal wetlands, littoral rainforests, coastal vulnerability areas, and coastal environment and use areas. Development in these areas requires assessment against the coastal management chapter.
  2. Contaminated land: A state-wide framework for remediation of contaminated land, minimising harm from past land use before new development proceeds.
  3. Flooding and hazardous development: Controls on development on flood-prone land.

If your site is flagged for any of these constraints on a Section 10.7 Planning Certificate, the Resilience and Hazards SEPP adds a layer of assessment above what the LEP and DCP require. A contaminated site typically cannot proceed to CDC; it goes to DA with a site audit or remediation action plan.

Note: as of March 2026, the NSW Government has exhibited a proposed Climate Change and Natural Hazards SEPP intended to replace and update the Resilience and Hazards SEPP 2021. Check the status at planningportal.nsw.gov.au (verified 2026-05-09).

The Biodiversity and Conservation SEPP 2021: vegetation clearing

The State Environmental Planning Policy (Biodiversity and Conservation) 2021 (commenced 1 March 2022) covers vegetation clearing in non-rural areas of NSW, including Greater Sydney and Newcastle.

Relevant to residential sites:

  • Clearing of trees or vegetation not associated with a DA may still require a council vegetation permit under the DCP, or trigger the biodiversity offsets scheme if clearing exceeds the threshold.
  • When a DA is involved, the SEPP coordinates with the Biodiversity Conservation Act 2016 to determine whether a biodiversity development assessment report (BDAR) is needed.

In practice: if site clearing is required as part of a residential build, check whether any trees on or adjoining the site are listed in the council’s DCP as requiring a vegetation permit. This can delay an otherwise straightforward project.

What it doesn’t cover

SEPPs do not cover:

  • Local design detail: setbacks, materials, solar access, privacy, carparking beyond the minimum in the SEPP. These are in the council’s DCP.
  • DA assessment itself: the EP&A Act and the EP&A Regulation set the DA process; SEPPs set the rules the DA is assessed against, not the procedure.
  • Construction certification: the CC, OC, and inspection regime are in the EP&A Regulation and the certifier’s appointment conditions, not in the SEPPs.

Practical implications

How to identify which SEPPs apply to your site

  1. Pull a Section 10.7 Planning Certificate ($53 plus extras, from council). It lists every overlay: heritage, bushfire, flood, coastal, contaminated land, acid sulfate soil. Each overlay flag indicates which SEPP may apply.
  2. Run the NSW Planning Portal Spatial Viewer at planningportal.nsw.gov.au/spatialviewer. Check the zone map, flood planning area layer, coastal zone layer, biodiversity values map.
  3. Cross-check the zone against the Codes SEPP eligibility rules. The SEPP Codes CDC eligibility checker is at the Planning Portal under Codes SEPP.
  4. If the site is near a train/light rail station or nominated town centre, check whether Stage 2 low/mid-rise housing reforms apply.

When a SEPP might help you

SituationSEPP that may open the door
Granny flat on a site where the LEP land use table doesn’t list secondary dwellingHousing SEPP 2021 overrides the LEP
Dual occupancy in an R2 zone that previously prohibited itHousing SEPP 2021 (Stage 1 low/mid-rise, from 1 July 2024)
CDC for a new home on a standard residential lotCodes SEPP 2008 (Housing Code)
Affordable housing component pushing past FSR or height limitsHousing SEPP 2021 (10-15% affordable housing bonus provisions)

When a SEPP might block you

SituationSEPP that triggers extra assessment
Site on flood-prone land per council mappingResilience and Hazards SEPP 2021: additional flood assessment required, CDC eligibility checked.
Site in coastal zone or with coastal wetland/littoral rainforest overlayResilience and Hazards SEPP 2021: coastal management chapter applies.
Contaminated land flag on the s10.7Resilience and Hazards SEPP 2021: remediation assessment required before development can proceed.
Trees on site over the biodiversity offsets thresholdBiodiversity and Conservation SEPP 2021: may require a BDAR.
Lot in a Precincts SEPP areaCheck the relevant Precincts SEPP for site-specific controls that may override the LEP.

References

See also


Last updated: 2026-05-09. Verified: 2026-05-09. Quarterly review for currency.