A major policy review is underway in NSW, aiming to overhaul outdated planning rules and reframe how rural land can be used. Currently, many rural landowners face strict limitations on what they can build. The proposed reforms would encourage greater financial viability and flexibility across the regions.
At present, rural landholders in NSW are restricted by regulations that often require secondary dwellings to be physically attached to the main house or within a set distance. These conditions do not account for the scale and practical layout of many rural properties.
The drive for reform follows a parliamentary inquiry set to release findings in February. The committee is examining how to provide rural landholders with development options similar to those available in suburban areas. In cities, families can build a granny flat on a 450sqm block. In contrast, rural landowners with more than 15 hectares cannot do the same, despite having more land and often a greater need.
The intended outcome is to increase housing supply and unlock asset value without subdividing productive farmland. If these changes are adopted, more than 350,000 rural landowners could benefit through extra rental income, increased property value and improved opportunities for multi-generational living. This is particularly important for older farmers looking to maintain their livelihood and keep property within the family.
The reforms focus not on subsidies or financial aid but on removing existing barriers. By allowing landowners more autonomy to develop responsibly, they offer a practical way to increase security during difficult crop seasons and to keep families living and working together.
These changes form part of a wider discussion about housing across NSW. Regional areas are facing shortages that affect both local residents and those relocating from the city in search of a different way of life. While some councils like Lismore have already permitted secondary dwellings on rural land, others such as Tweed continue to enforce more restrictive rules. This inconsistency is a key concern identified by the review.
NSW appears to be moving toward a simple and low-cost reform. Such a shift could ease pressure on housing availability without requiring major infrastructure investment. For farmers and long-term landowners, it may finally align planning laws with the lived realities of rural life.
