You may recall the Greater Sydney Commission created by the Baird government back in 2016. There has been plenty of cynicism such as James Valentine and HG Nelson on ABC Radio discussing plans to create an Even Greater Sydney. This body was supposed to provide independent and expert strategy advice. The Minns government decided to abolish this body as not enough action was happening and the role was taken back by the Department of Planning from January 2024.
It seems that the process is still fragmented and duplicative with a multitude of plans and strategies and associated documents. The government has now decided that the coordination of the system has to be updated so a whole new strategy was announced in December 2025 called the Land Use Plan.
The hierarchy of roles and responsibilities will be:
- state plan: sets priorities and policy direction;
- region plans: translate state direction into spatial strategies and sequencing; and
- local government: delivers outcomes on the ground, albeit with their hands tied, through zoning, housing, infrastructure and local plans.
The planning legislation has been radically changed with the introduction of the Transport Oriented Development Program and the Low and Mid-rise Housing Policy in 2024 and then further changes were legislated late in 2025 aimed to speed up development – see this article in STEP Matters, Issue 233.
It is claimed the new plan ‘will provide councils with clearer direction’. But how much power are councils left with when so many developments are covered by proscribed planning policies such as the complying development rules? Their ability to ensure goals such as tree canopy cover and demand for parking have been lost to developers choosing where to put in low and mid-rise housing and dual occupancies. Larger scale developments are controlled by the Housing Delivery Authority.
The elephant in the room, as always, is the growth in population that has to be accommodated.
The planning is centred around four regions – Sydney, Lower Hunter and Central Coast, Illawarra and Shoalhaven and combined other rural areas. The draft Sydney Plan (see below) is the first regional strategic plan being developed under the new framework. It demonstrates how state-wide priorities will be applied at a regional level.
Public consultation is open until 5 pm Thursday 27 February 2026. There a survey that can be completed and submissions can be made.
Visit the NSW Planning Portal to read the full discussion paper, review the draft Sydney Plan and watch a video overview explaining the proposed changes.
Please consider making a submission on the issues you see with the ways that Sydney is changing such as the impact on biodiversity and your local environment.
Sydney Plan
Greater Sydney's population is projected to grow from 4.9 million in 2021 to 6.3 million people by 2041. That's 1.4 million more people, up 28% over 20 years.
By 2041, Greater Sydney will be home to 63% of all people living in NSW.
The discussion paper describes the Sydney Plan as:
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.
The intention is that the studies and plans prepared over the next five years will inform approaches over the next 20 years.
The press release notes key objectives of improvement in the planning system are:
- Better aligning infrastructure to planned growth for both infill and greenfield development.
- Increasing the supply of well-located jobs by delivering more guidance to councils on employment categories that suit their area.
- Protecting and enhancing the natural environment by bringing contemporary environmental management approaches into the planning process early and delivering more urban greening.
- Making affordable housing contribution schemes mandatory for all councils, so every part of Sydney is doing its part to create a more affordable city.
Time will tell whether execution meets these ambitious objectives.
Basic information is missing, e.g. how many new dwellings?
The Sydney Plan supposedly provides a 20-year vision but there are no statistics provided of how many new houses are expected to be needed over the next 20 years. It only covers data under the National Housing Accord of the number of new dwellings that should be completed between 2024 and 2029. The figures are 7,600 for Ku-ring-gai and 5,500 for Hornsby. There is also data, that is nothing new, of the number of new dwellings that are expected to be achieved (timeframe unknown) via the rezonings under the Transport Oriented Development Program of 24,700 dwellings in Ku-ring-gai and 6,000 in the central Hornsby accelerated precinct and state assessed rezoning for 9,350 dwellings in Cherrybrook (Appendix D of the plan document).
The outcome from the other main plans to increase housing density, the Low and Mid-rise Housing Policy and dual occupancy provisions are very much an unknown as they depend on individual landowners and developers choosing where to act and being able to afford to redevelop existing housing. The main activity that is being observed is the knocking down of older houses and replacing them with large ‘McMansions’ with no increase in the actual number of dwellings at the cost of a heavy use of construction resources.
Priorities under the Sydney Plan
The plan defines objectives using catchphrases such as ‘prosperous’, ‘resilient’, ‘liveable’ as they apply to housing targets, infrastructure, employment etc. These are translated into responses planned to be implemented over the next five years. The responses are in the form of priorities such as designation of open space, flood prone land, industrial land and the blue-green grid. Each of the priorities are addressed with specific policy and planning responses. Sydney region councils are expected to align their local planning with the priorities and policy responses done through their local strategic planning and local environmental plans.
Examples of the responses include creation of specific entertainment precincts or new public transport or blue-green grid initiatives. The only plans for the latter for northern Sydney are improvement in the connections between Eastwood to Macquarie Park and along the Lane Cove River.
No doubt there will be more detailed plans provided to councils than are not shown in the Sydney Plan document.
Tree canopy target
There is a problem that many of the policy responses can only work in new greenfield areas. The most obvious issue is dealing with the heat island effect. A target of tree canopy of 40% by 2036 is expected. Councils will be responsible for setting canopy and urban greening targets for both public and private land in their local area.
How can this be met in all those recently developed suburbs with no space for a garden let alone a tree? Many of the existing complying development parameters do not allow sufficient space for trees.
Councils could try to make up the shortfall with street trees but few existing streets are wide enough for a nature strip that provides room for decent sized trees. In streets with higher density development driveways occupy a large part of any nature strip. Tree height growth is often constrained by power lines.
Urban greening targets
The Department of Planning 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. Good luck with this! The current trend is reductions in tree canopy cover.
Low and mid-rise tree canopy guide
A Tree Canopy Guide for Low and Mid Rise Housing has been published. Even for the larger blocks only medium size trees are required such as crepe myrtles or maples.
Note: Spanish Moss loves these trees!
The guide is not at all consistent with the 40% tree canopy objective. For example:
A dual occupancy on 1,000 m2 is required to have at least 25% deep soil and only at least 5 medium trees that equates to only 250 m2 assuming the trees are allowed to reach maturity. Other guidelines equate to less than 25% coverage. That is nowhere near the 40% objective.
Climate change impacts
The Sydney Plan draws on a range of data sources and climate modelling 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; and
- directions for open space and the blue-green grid.
The environment
The plan mentions the need for improving biodiversity and conservation planning within the urban footprint. However, the immediate action plans are restricted to urban heat (tree canopy targets), natural hazards (avoid flood prone land), waterway health and construction standards.