Duplex Reforms 2025
Everything You Need to Know About NSW’s Stage 2 Duplex Reforms (Effective 28 Feb 2025)
Following multiple delays and extensive discussions, the NSW Government has officially launched the second stage of the State Environmental Planning Policy (Housing) Amendment (Low and Mid-Rise Housing) 2025. Now incorporated into Chapter 6 of the Housing SEPP, this policy extends to 171 new locations across NSW, with the goal of increasing housing availability in strategically positioned areas.
Following the Stage 1 housing reforms in July 2024, which introduced changes to dual occupancies (read our full breakdown of Stage 1 reforms here) the Stage 2 reforms were announced on Friday, 21 February 2025, and take effect on Friday, 28 February 2025.
These reforms introduce new non-discretionary development standards for duplexes and expand their permissibility in R2 zones within designated low and mid-rise housing areas.
If you’ve been considering building a duplex in NSW, here’s what you need to know.
What is a Non-Discretionary Development Standard?
Before diving into the specifics of the Stage 2 reforms, it is crucial to understand non-discretionary development standards and how they impact the approval process.
A non-discretionary development standard—also known as a non-refusal standard—sets clear approval criteria for building height, floor space ratio, lot size, and other key controls. If your duplex proposal meets these rules, councils cannot reject your application on the basis of their local planning controls. This simplifies the approval process and removes uncertainty for homeowners and developers.
“For example, in low and mid-rise housing areas, the Low and Mid-Rise Housing Policy sets a non-discretionary maximum height of 22 metres for residential flat buildings in R3 and R4 zones. If the current maximum height standard on the site in the LEP is 10 metres, the 22 metres non-discretionary standard would apply. If the current height in the LEP is 40 metres, then 40 metres would apply.”
Key Changes in Stage 2 Duplex Reforms
1. Duplexes Permitted in R2 Zones (with Limitations)
Initially, the government indicated the new rules would apply state-wide. However, after reviewing the Low and Mid-Rise Housing SEPP, this is not the case. Duplexes are now permitted in all R2 zones—but only if the land falls within a designated low and mid-rise housing area.
Previously, duplexes (or dual occupancies) were often restricted in R2 Low Density Residential zones, with councils like Liverpool Council prohibiting them outright. Now, these reforms override local planning restrictions within eligible areas.
2. Duplexes allowed Statewide (With Some Exclusions)
Further to the above, there are exclusions. Duplexes cannot be built on land that is:
- Bushfire prone (BAL-FZ or BAL-40)
- Flood-prone (identified as high-risk)
- Affected by noise exposure (e.g., near major transport corridors)
- Listed as a heritage item or within a heritage conservation area
How do you know if your property is affected by any of these exclusions? This is exactly the sort of stuff that EzFeasy covers. Our Duplex Feasibility Reports analyse all planning restrictions, giving you a clear answer on whether your site is eligible. Don’t waste time on uncertainty—let EzFeasy do the heavy lifting for you.
3. New Non-Discretionary Development Standards relating to a Duplex
The Stage 2 reforms introduce non-discretionary development standards for duplexes in R1, R2, R3, and R4 zones, but only within LMR Areas (LMR Areas are Low and Mid-Rise Housing Areas as mapped and described below). These set clear, consistent rules that override Local Environmental Plans (LEPs) and Development Control Plans (DCPs).
Here’s what you need to meet for your duplex to be possible:
- Minimum lot size: 450m²
- Minimum lot width: 12m
- Maximum floor space ratio (FSR): 0.65:1
- Maximum building height: 9.5m
- Car parking: 1 space per dwelling
If your duplex meets these standards, local councils cannot refuse your application based on their existing LEP or DCP controls.
4. Subdivision Now Allowed for Dual Occupancies in R1, R2, and R3 Zones
One of the most significant changes is the ability to subdivide a lot after constructing a duplex. The new subdivision requirements are:
- Minimum lot size per dwelling: 225m²
- Minimum lot width per dwelling: 6m
If your duplex meets these standards, local councils cannot refuse your application based on their existing LEP or DCP controls, even if their current zoning rules or guidelines suggest otherwise. These non-discretionary standards take precedence, ensuring a more predictable and streamlined approval process.
A note here that R4 zoning is not mentioned regarding subdivision. Caution should be taken as to whether subdivision is permissible in this zone.
5. Where Do These Rules Apply?
These new planning controls apply to 171 locations across NSW. Specifically, they impact sites within 800 metres walking distance of town centres and train or light rail stations in Sydney, Central Coast, Illawarra, and the Hunter region.
To check if your site is within one of these designated low and mid-rise housing areas, you can use the NSW Government’s interactive map here
6. How is Walking Distance Measured?
Walking distance is measured from the nearest station entrance or the edge of a town centre along a publicly accessible walking route. This is similar to the walking distance requirements in other sections of the Housing SEPP.
How These Changes Impact Homeowners & Developers
For homeowners and investors, these changes mean:
- More opportunities to build duplexes, especially in R2 zones
- Greater certainty in the approval process
- Subdivision potential, allowing each duplex to be on a separate title
Next Steps: How EzFeasy Can Help
Thinking about building a duplex?
As these reforms are so new, councils and industry professionals are still getting up to speed. That means inconsistencies in interpretation and approval delays could arise. If you want certainty before you invest in a duplex project, get your EzFeasy Report—we’ll show you exactly where you stand.
At EzFeasy, we provide Duplex Feasibility Reports that assess whether your site meets the new Stage 2 requirements. Our reports will now identify if your property is within a Low and Mid-Rise Housing Area and if you can take advantage of the non-discretionary development standards that would apply. We also assist with the approval process, ensuring a smooth and stress-free experience.
Find out if your site qualifies—Get your EzFeasy Duplex Report today!
