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Central Planning Strategy Amendment Increases Tower Separation in CBD Fringe

The local council requires residential towers above 55 metres to maintain a 24-metre separation from neighbours instead of 18 metres.

By Sydney CBD Policy Desk · Published 25 July 2026

Listen in English · 2 min

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. Sydney Weather News is part of The Daily Network and follows our reasonable editorial care.

The local council is amending the Central Planning Strategy to require residential towers above 55 metres in the CBD fringe to maintain a 24-metre separation from neighbours, up from 18 metres, based on 2026 solar and wind modelling.

The housing delivery authority has declared 11 new state significant development projects that could create approximately 3,340 homes, including affordable housing, following a 12-month review that updated affordable housing criteria and formalised land use exclusions for the CBDs.

Levy Requirements for Residential Projects

The local council's affordable housing scheme now mandates a standard 3% Gross Floor Area levy for all residential development and a 20% uplift capture levy where land is rezoned. The council is pushing for a stricter, local definition of affordable housing and supports the 20% levy increase on rezoned projects to ensure planning reforms deliver greater community benefits in the CBD fringe.

These requirements target increased revenue from new CBD tower developments and apply directly to projects that proceed under the updated rules.

Changes to Low and Mid-Rise Housing Options

The 2026 Low and Mid-Rise Housing Policy permits duplexes on R2 low-density lots as small as 450 square metres with Torrens Title Subdivision. It also allows up to six-storey apartments reaching 22 metres in R3 zones near transport hubs.

For local residents, the separation rule applies to new towers in the CBD fringe while the low and mid-rise provisions expand density options on qualifying lots. The 11 declared projects are projected to add housing supply under the revised criteria. The government says the policy will increase homes including affordable units, with the levies expected to generate revenue for community benefits from rezoned sites.

Implementation follows the 12-month review and 2026 modelling already completed. Further projects will proceed according to the updated standards and exclusions now in place.

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