Subdivision Requirements in 2025: Key Changes Impacting Building Approvals
The State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 has undergone significant updates for 2025, introducing changes that directly impact subdivision requirements and building approvals for houses and dual occupancies. From new rules ensuring subdivisions remain possible under complying development to updated requirements for balconies on small lots, these changes aim to streamline approvals while addressing community and environmental considerations.
This article provides a summary of the updates we believe will have the greatest impact on subdivision requirements and CDC approvals—it’s not an exhaustive list, but a look at the most critical changes shaping the process. A complete list of the changes can be accessed here.
One of the biggest updates to subdivision requirements in 2025 is the introduction of a savings provision to prevent projects from being impacted by shifting council rules. Previously, some dual occupancies and terraces were built under complying development, only for their subdivision to be rejected because local environmental plans had changed in the meantime. The updated policy ensures that if a project is approved and built under complying development, it can also be subdivided under complying development, even if council planning controls have changed. This provides greater certainty for developers and homeowners, reducing the risk of projects being left in limbo due to unforeseen planning amendments.
Subdivision requirements under the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 have also been revised to improve clarity and consistency with approved building designs. These updates affect how dual occupancies, terraces, and other low-rise housing types are approved and subdivided, ensuring subdivision rules align with the intent of the original development approval.
Below is a summary of the most significant changes impacting subdivision requirements and CDC approvals.
Subdivision & Design Changes in the Low-Rise Housing Diversity Code
The 2025 updates to the Low-Rise Housing Diversity Code introduce several key changes that impact both subdivision requirements and building design rules.
Updating:
- Dual occupancies (attached) and terraces must have a common wall.
- Parking setbacks must clearly apply from the road boundary of the lot.


Clarifying:
- Each terrace must be at least 6 metres wide, including any front-accessed car parking.
- Balcony and verandah provisions.
- Lanes cannot be the primary road for dwellings.
- Protected tree provisions also apply to trees on adjacent lots.


Adding:
- A requirement that balconies align with the adjacent internal floor level.
- A savings provision ensuring that dual occupancies and terraces built under complying development can also be subdivided under complying development, even if local environmental plans change.
- This savings provision is particularly significant for those developing dual occupancies or terraces, as it guarantees subdivision approval remains possible even if planning rules are amended after construction begins. These updates provide greater certainty and reduce the risk of delays or unexpected hurdles in the subdivision process.


New Rules for Balconies and Decks on Small Lots
The 2025 CDC updates introduce new controls for balconies, decks, patios, terraces, and verandas specifically for lots ranging from 200m² to 300m², marking a significant change. Previously, these structures were prohibited on the side or rear of lots under 300m². The updated rules allow homeowners on smaller lots to add these features, provided certain conditions are met.
Key controls include:
- Lot size and width: For lots between 200m² and 300m², the lot must be more than 7m wide at the building line. For lots larger than 300m², the width must be between 7m and 10m to qualify for these new rules; otherwise, the previous controls for lots over 300m² apply.
- Height limits: The structure’s maximum height must be the lesser of 3m above the finished floor level or the dwelling’s roof gutter line.
- Floor level restriction: The finished floor level cannot exceed 1m above the existing ground level.
These changes provide more flexibility for homeowners while maintaining design consistency. For larger lots over 300m² and beyond the 10m width threshold, the existing standards remain in place, ensuring broader design and approval compatibility. The entire control can be accessed here.
Key Takeaway
Navigating subdivision requirements can be complex, but these 2025 updates aim to provide more certainty for property owners and developers. If you’re planning a project and want to ensure it meets the latest approval and subdivision rules, EzFeasy is here to help. Reach out to our team for expert guidance and an easy, stress-free approval process!
The savings provision is the most significant change, addressing previous issues where changes to local environmental plans left developers unable to subdivide their completed projects. These updates provide much-needed certainty for those navigating the approval process. The key to ensure it is possible to have the building approved under CDC. We cover this in our EzFeasy Duplex Reports & EzFeasy Townhouse Reports. highlighted below.

We hope this summary of the 2025 CDC updates helps you navigate the approval process for your project with confidence. If you need assistance or have any questions, don’t hesitate to reach out to the team at EzFeasy—we’re here to make building approvals easy