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The NSW government has moved to unlock more housing around the Western Sydney International Airport (WSIA), reversing a previously imposed ban on secondary dwellings in the region.
The amendments to the Western Parkland City State Environmental Planning Policy will apply to land within the Australian Noise Exposure Concept 20–25 contour, which identifies areas expected to experience lower aircraft noise levels.
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The change will lift the ban on secondary dwellings, such as granny flats and studios, in key locations near the WSIA.
The changes apply to eligible land in the local government areas (LGAs) of Wollondilly, Camden, Fairfield, Liverpool, and Penrith.
The reforms come as investors have begun to use secondary dwellings as an additional income stream, with granny flat investment jumping by 21 per cent in 2025.
According to the data, secondary dwellings in Sydney and Melbourne could generate an annual income of $18,000 to $36,000.
Minister for Western Sydney Prue Car said the planning reforms would support housing delivery to ensure Western Sydney’s long-term growth.
Minister for Planning and Public Spaces, Paul Scully, said the reform would provide more housing options for buyers close to transportation and job opportunities.
“Allowing secondary dwellings in suitable areas around the new airport is a commonsense approach that will help create more affordable and flexible housing options for families, while supporting the long-term growth of Western Sydney.”
“Whether it’s young people trying to stay close to home, older parents wanting to live near family, or homeowners looking for greater flexibility, these reforms will help communities grow alongside the investment coming to Western Sydney,” Minister Scully said.
The 114-hectare Bradfield City Centre near the airport, backed by more than $1 billion from the state government, is expected to include up to 10,000 new homes, with the government saying it will deliver 20,000 direct jobs.
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