NSW CDC & LMR update — what changed last week (and what it means for dual occ, terraces & subdivision)

Last week brought a few important tweaks to New South Wales’ Low and Mid Rise (LMR) and Complying Development Code (CDC) settings. Here’s a plain‑English wrap of what changed, why it matters, and how Planland can help you work out what’s now possible on your site.

• Dual occupancy in R2 via CDC: The statewide LMR permissibility for dual occupancies in R2 can now be used through the CDC pathway across most LGAs (with Ballina the standout exception for now).

• Minimum lot areas now set: New minimum lot sizes for dual occupancies in R2 have been added into LEPs that previously prohibited them (Inner West is a notable exception at time of writing).

• Subdivision now explicit in LMR areas: Subdivision of dual occupancies and terraces is now clearly permissible in LMR areas (despite previous LEP prohibitions), with new non‑discretionary subdivision standards.

• Inner vs outer LMR areas clarified: The LMR inner/outer area mapping now applies to whole lots (not only the part of a lot within the walking‑distance rings), reducing edge‑case ambiguity.

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Bottom line: Many sites that were “close, but not quite” now qualify. If you were previously ruled out on CDC/dual‑occ, it’s worth a fresh look.

The big one: Dual occ (R2) now CDC‑capable in most LGAs

LMR made dual occupancies permissible with consent in R2 across NSW. With last week’s update and council LEP changes now in place across most areas, that permissibility can finally flow through to CDC in the vast majority of LGAs. The practical impact: faster approvals and more certainty for straightforward dual‑occ designs.

Exception: Ballina remains carved‑out for now; dual‑occ CDC is still not available there.

What to check on your site

• Zoning is R2.
• Minimum lot size + width meet the new rules for your LGA.
• Constraints (flood, bushfire, heritage, TOD overlays etc.) do not exclude you.

Minimum lot sizes: a new baseline in formerly “no‑dual‑occ” LEPs

To support CDC, the State has inserted minimum lot area rules for dual‑occ in R2 into LEPs that previously banned them — creating a consistent baseline. Inner West has not adopted these minimums yet, so dual‑occ there remains more constrained than its neighbours.

What this means in practice:

• If your LEP now lists dual‑occ in R2 + a minimum lot size, the CDC pathway is unlocked (assuming other CDC criteria are met).
• Expect minor local variation (e.g. lot width, frontage requirements) — check your LGA’s adopted figures.

Subdivision is now explicit (and faster)

LMR now expressly allows Torrens subdivision for both dual occupancies and terraces in LMR areas, with non‑discretionary standards (e.g. minimum resulting lot area and width). This overrides LEP‑level prohibitions that previously forced separate DAs or blocked subdivision entirely.

Why this matters:

• You can design for title split up‑front and keep delivery on a single, predictable track.
• Lenders get the clarity they want on post‑construction titling.

Inner vs outer LMR areas apply to whole lots

The previous grey area around “part‑lot” coverage is gone. The inner/outer LMR categories now apply to the entire lot once any part of the lot falls within the mapped distances. That means edge‑properties aren’t penalised by a sliver‑only interpretation.

Practical tip: If your lot clips the inner area, design to inner‑area settings — you don’t have to split the site conceptually.

Quick links to the code (for planners and certifiers)

• Codes SEPP (Exempt & Complying Development Code) — current consolidated text (CDC rules): https://legislation.nsw.gov.au/view/html/inforce/current/epi-2008-0572

• Housing SEPP — Low & Mid Rise amendments (2025 No 81) — dual‑occ/terrace standards + subdivision: https://legislation.nsw.gov.au/view/pdf/asmade/epi-2025-81

• Low‑Rise Housing Diversity Code (CDC overview + FAQs): https://www.planning.nsw.gov.au/policy-and-legislation/housing/low-rise-housing-diversity/low-rise-housing-diversity-code

• LMR policy hub (official guidance + key provisions): https://www.planning.nsw.gov.au/policy-and-legislation/housing/low-and-mid-rise-housing-policySummary of key provisions: https://www.planning.nsw.gov.au/policy-and-legislation/housing/low-and-mid-rise-housing-policy/summary-of-key-provisions

• LMR Viewer (maps): https://spatialportal.dpie.nsw.gov.au/portal/apps/experiencebuilder/experience/?id=c53d5767b677454c8a26d6790a296bc2

• Example council references (lot size adoption):Hornsby: https://www.hornsby.nsw.gov.au/property/build/duty-planner/duty-planner-form/dual-occupancyduplex

• Ku‑ring‑gai (process & targets): https://yoursay.krg.nsw.gov.au/dualoccupancy/faq_full_list

• Ballina (exception) — Urban Dual Occupancy guide: https://www.ballina.nsw.gov.au/Plan-Build-and-Business/Development-Applications/Development-Application-Guides/Urban-Dual-Occupancy

If you’d like us to drop the exact clause references for your site in an email, just ask — we’ll send a tailored notes pack.

What this means for owners & developers

• More sites are “CDC‑ready” for dual‑occ than a month ago.
• Subdivision clarity means less risk for staged finance and exit strategies.
• Borderline lots near centres/stations may now qualify as “inner area” for the whole lot — unlocking more generous settings.

How Planland can help (free quick check)

• Free 10‑minute eligibility check — send us an address, we’ll confirm zoning, LMR status, and CDC feasibility.
• Council‑specific lot size audit — we’ll confirm your LGA’s adopted minimum lot size/width and flag any gotchas.
• Design‑to‑code pack — a certifier‑friendly brief aligning your concept to CDC/LMR standards (lot layout, setbacks, FSR & height, parking, tree canopy, subdivision metrics). Keen to see if your site now qualifies?

👉 Book a quick call or **email **link@planland.com.au with your address (and a link to your DP). We’ll get you an eligibility note within one business day.

This article is general information only and isn’t legal advice. Always check the final wording of the SEPP, Codes SEPP and your council’s LEP/DCP for site‑specific constraints before you commit.