When viewed in the context of past challenges, the latest TOD precinct strategic planning program represents a success. Key to this achievement was the incorporation of more comprehensive technical studies to embed supporting infrastructure—such as local roads, open spaces, and community facilities—within the precinct master plans.

Crucially, the DPHI took the lead in finalising the strategy by amending State Environmental Planning Policies (SEPPs) to update relevant Local Environmental Plans (LEPs), granting immediate statutory effect. This approach sets a new standard for timing and implementation, serving as a benchmark for future town centre and precinct urban renewal planning programs led by the DPHI.

However, one notable aspect is that these rezonings and the strategies coming to fruition within individual LGAs are being done in the absence of revised broadscale Regional Plans. All levels of Government are fast-tracking strategic policies to address the need for well-located homes to tackle the current crisis, which is commendable. Regional Plans are still crucial for setting the strategic direction of our cities and ensuring well-planned holistic outcomes for the delivery of timely infrastructure, jobs, and homes. We must ensure that coordinated strategic plans remain, especially through the terms of government.

What will the finalised TODs deliver: 

The latest population projections, released by DPHI in November 2024 and incorporating data from the 2021 Census, indicate a demand for 1 million new dwellings across the State by 2041. This figure is over 100,000 more homes than previously anticipated in the 2022 projections.

These revised projections underscore the critical need for increased housing supply. The Low and Mid Rise Housing reforms, along with the TOD program, are pivotal in unlocking significant capacity to accommodate this projected growth. The 5-year housing targets released earlier this year include assumptions about the number of new homes expected to be completed within five years, driven by planning reforms aimed at providing more diverse and well-located housing options.

Coordinated infrastructure delivery, streamlined development assessment processes, and continued collaboration between government and industry are essential to accelerating the development within the TOD precincts and meeting these ambitious targets.

The TOD rezoning process has been a real game-changer by the government. Accelerating rezoning of land to facilitate nearly 60,000 homes in a 12-month process is unprecedented in recent times – however, this accelerated timeframe hasn’t come without some missing pieces.

So, here are Urbis’ top takeaways on what’s good and what needs more resolution with the TODs.

The good:

• Master planning precincts is complex and can often result in a balancing act of stakeholder interests and needs. By the government stepping in and coordinating rezoning of these precincts, critical infrastructure like new local roads, open space, and parks have been ‘locked in.’ This ensures the necessary amenity will be provided by industry in conjunction with new development.
• The government’s ability to achieve the committed timeframes is applauded. This has given the industry confidence that announcements are being met with real policy change.
• The delivery of affordable housing will be required for all residential development in the precincts, representing a significant new policy position. Employing a nuanced approach to affordable housing contributions represents an appropriate and balanced step to facilitate the delivery of much-needed housing.
• The delivery of affordable housing is consistent with the approach of many global cities around the world.

What needs more:

• Some TODs haven’t capitalised on the potential for increased density and uplift. We acknowledge that there has been a key focus on delivering positive urban design outcomes from the Department; however, some sites are not met with a commensurate uplift and may not be feasible for development in the near term.
• Some sites would have yielded a better outcome under the TOD SEPP controls combined with the infill affordable housing uplift, representing a disadvantage and a loss of both affordable housing and housing more broadly. Switching off the infill affordable housing controls has had a negative impact on many of the lower-scale development sites.
• With the Low-Mid Rise Housing Policy still yet to be released, we need to ensure that any overlap in the suite of policy reforms doesn’t unnecessarily hinder the ability to deliver homes, especially in well-located and strategic locations.
• The principle of inclusionary zoning is supported; however, the balance of infrastructure delivery on some sites hasn’t aligned with current feasibility and market testing. More robust market analysis and feasibility considerations of new cost obligations (affordable housing, physical infrastructure like roads and cycle links, and other State and local levies) need to be considered when assessing the impact of delivery.
• A clear mechanism and pathway for refinement need to be communicated to the industry. The rapid pace at which the plans were prepared ultimately means there will need to be refinement, and some sites may suit an alternative design outcome. We need to ensure that guidelines still provide flexibility for nuanced approaches to site planning.
• Some TODs have indicated areas for ‘future investigation.’ It should be made clear whether there will be a period where the TOD precincts are revisited for future expansion to mitigate the potential uptake of spot rezoning in areas that were potentially overlooked.  

Since taking office, the current government has introduced numerous changes and announcements regarding planning and housing policies in NSW. However, many of these announcements over the past year have lacked the critical details needed to fully assess their potential impact. With 2025 being the final full year of this government’s term, it represents a crucial opportunity for planning and housing policy implementation. As we transition from 2024 into 2025, several foreshadowed policies are expected to move from concept to action, aiming to meet the housing targets set under the Federal Housing Accord. These include:

Housing Taskforce

Housing Delivery Authority

Low-Mid Rise Housing Policy

Council Alternatives to TODs

Revised Strategic Plans

Metro Business Cases

Final Metro West Alignment

TOD Phase Two

Conclusion

As we look ahead, the Urbis NSW Planning Team remains committed to providing insights and analysis on the ongoing housing reforms. We will continue to support and collaborate with the government and other stakeholders to ensure that these initiatives translate into tangible benefits. The journey towards comprehensive housing reform is complex, but with continued effort and innovation, we are optimistic about the positive impact these changes will bring to our communities.