Balancing Heritage & New Developments in Sydney

Heritage properties in Sydney are a prominent part of the city’s history. To protect and preserve the value of all heritage properties and spaces in Sydney, there are strict regulations on the work that can be done on new and existing dwellings.

As the new Transport Oriented Development (TOD) planning reforms are being rolled out across local government areas in Sydney, developers working in heritage conservation areas or with heritage items may be wondering how to balance preservation with new designs. 

Crush Architecture has prepared this guide on how the new TOD legislation applies to heritage and new developments in Sydney, and how developers can find the right balance in design.

Heritage Building Regulations in Sydney

Heritage items and conservation areas in Sydney are identified in Local Environmental Plans (LEPs) administered by each council. LEPs list buildings, structures, gardens, trees, and precincts that hold cultural, historical or architectural significance. Works affecting heritage items and areas must respect heritage value in design, materials, and setting. 

Many councils layer additional rules into their Development Control Plans (DCPs) to guide what is acceptable in terms of scale, materials and how new work is blended with old.

Clause 5.10 of the Standard Instrument LEP states that when a site contains or is near a heritage item, or is within a heritage conservation area, development proposals must show how heritage values are conserved and enhanced. The Heritage Impact Statement is a key component of development applications that detail the project’s effect on heritage value in the area.

TOD Regulations for New Developments in Sydney

The new Transport Oriented Development (TOD) planning controls are the state’s response to housing supply pressures around transport hubs. The State Environmental Planning Policy (Housing) 2021 now includes Chapter 5: Transport Oriented Development, which creates a consistent planning framework within roughly 400 metres of selected train and metro stations. These controls were introduced to deliver mid‑rise housing and connected communities around existing train and metro stations.

Under the new provisions, within a TOD precinct:

• Residential flat buildings and shop‑top housing become permissible in certain zones that might not have allowed them before.
• Building heights are capped (generally up to about six storeys), with defined floor space limits. 
• A minimum lot width and expectations for active street frontages underpin quality design outcomes.
• A mandatory affordable housing contribution – currently around 2 % on suitable developments.
• The Apartment Design Guide remains the design benchmark for these projects.

How TOD Planning Controls Apply to Building Types

Feature	Zone where TOD changes apply	Residential flat buildings	Shop-top housing
Permissibility	R1, R2, R3, R4	Yes	No
	E1 (B2)	Yes	Yes
	E2 (B3)	No	Yes
Floor Space Ratio	Relevant zones are defined in clause 151 of the Housing SEPP	Maximum 2.5:1 *	Maximum 2.5:1 *
Building Height		Maximum 22 m*	Maximum 24 m*
Lot Size		No minimum lot sizes	No minimum lot sizes
Lot Width		Minimum 21 m	Minimum 21 m
Active Street Frontages	E1 (B2)	Yes	No
Affordable Housing	Relevant zones are defined in clause 151 of the Housing SEPP	Yes	Yes

Prevailing Controls For TOD Amendments and Environmental Planning Instruments (EPIs) 

In the event of conflicts between TOD amendments and the relevant environmental planning instruments, the TOD planning controls will apply. 

TOD Amendment	Relevant EPI	Prevailing Control
Section 155: Maximumbuilding height andmaximum FSR (floor space ratio)	Set building heightand FSR	Greater max buildingheight and FSRcontrols prevail
Section 158: Exceptionto minimum lot size	Min lot size controlfor RFBs/STH (residential flat building/shop-tophousing)	TOD planningcontrols prevail
Section 159:Minimum lot width	Min lot width controlfor RFBs/STH
Section 160: Activestreet frontages	Active street frontagerequirement

When Do TOD and Heritage Controls Apply?

If a plot of land contains a heritage item, whether listed locally or on the State Heritage Register, the TOD planning controls do not apply to that part of the land. The same exclusion applies to land that contains Aboriginal objects or is within an Aboriginal place of heritage significance, or archaeological sites.

Where a site is inside a heritage conservation area but does not have a heritage item itself, the TOD controls can apply, but with some limitations. In those cases, any development must meet the TOD thresholds for form and density and satisfy the heritage tests under the LEP and DCP. The council continues to be the consent authority for these applications, assessing heritage impact as a core part of the decision.

Some councils have pushed back on the state’s default TOD mapping, arguing that a one‑size‑fits‑all approach does not respect local character and heritage. For example, the Ku‑ring‑gai Council has developed its own alternative to the state TOD map, targeting the same housing capacity while seeking stricter controls on preserving heritage and environmental values.

Development Considerations for Heritage Properties and Conservation Areas

Working with heritage and TOD planning controls requires developers to make additional considerations across the following to ensure the right balance in design, function, and preservation of heritage value.

Heritage Impact Assessment 

Any development application involving a site that has a heritage-listed item, or is within or adjacent to a heritage conservation area, must include a Heritage Impact Statement prepared by a qualified professional. Applying in advance for a heritage impact assessment will help to prevent delays in the process for obtaining development approval from the council.

Engage a Heritage Architect

Achieving the right balance between preservation and innovation in design can be especially challenging. Developers should consider working with a professional heritage architect who can provide expert advice on the design of the project, find creative solutions for new developments that fit within heritage constraints, and accelerate the council approval process. 

As the leading heritage architect in Sydney, Crush Architecture specialises in working with developers on projects with heritage considerations. We also have close connections with Sydney councils and heritage consultants, giving us a unique approach to developing proven strategies for development approval and project success.