North Sydney Planning Updates October 2026: Affordable Housing Levy on Apartments Endorsed, Contributions Plan Amended and Fewer DA Notifications

The main North Sydney change this quarter is money. On 14 September 2026 Council voted to prepare an affordable housing contribution scheme for apartment and shop-top housing outside Crows Nest. On the same night it adopted changes to its infrastructure contributions plan. And since 1 September, neighbours are no longer notified about most new houses and dual occupancies.

Status snapshot (October 2026)

Primary sources: Council’s minutes of 14 September 2026, the Your Say page for Amendment No. 2, Council’s notification changes notice and the DPHI Community Participation Plan page.

What is North Sydney’s new affordable housing contribution scheme?

An affordable housing contribution scheme lets a council require new development to hand over a share of floor space (or money instead) for affordable rental housing. In North Sydney, this levy already applies in the State-led Crows Nest Transport Oriented Development (TOD) precinct under clause 7.5 of North Sydney LEP 2013. There, the rate is at least 3% of new residential development and 5% to 18% on key sites. Everywhere else in the local government area, there is currently no general affordable housing levy.

That is set to change. Council commissioned SGS Economics and Planning to test feasibility, then met DPHI and Homes NSW in May 2026. On 14 September 2026 Council resolved (7 votes to 2) to prepare a scheme and a planning proposal to amend the LEP. The State’s new Sydney Plan, released on 13 August 2026, also expects every council to adopt one of these schemes over time, according to Council’s report.

What rates did Council resolve?

Officers proposed 2% rising to 3%. Councillors adopted a firmer position based on the feasibility study:

The resolution also asks for a review of the rates within three years of gazettal. Monetary contributions instead of dwellings would be priced suburb by suburb, as City of Sydney and Waverley do, rather than as one rate across the LGA. All affordable housing delivered under the scheme would have to stay affordable in perpetuity. Council also wants clear trigger thresholds and rules that stop people avoiding the levy by staging DAs, subdividing or modifying approvals.

Who would pay, and who would not?

• Would pay: residential flat buildings and shop-top housing outside the Crows Nest TOD precinct.
• Would not pay (as proposed): dwelling houses, dual occupancies and terraces (multi-dwelling housing). The feasibility testing found these were not viable to levy across most of the LGA. DPHI and Homes NSW also said they generally do not support levies on low-density housing.
• Rezonings: for planning proposals and SSDs with a concurrent rezoning, Council proposes that a valuation report set a site-specific rate, because those sites get more uplift.
• Dedicated dwellings: each would need at least 50 m² of GFA. They would go to Council or a community housing provider. Council’s long-standing provider in North Sydney is Link Wentworth.

Council has also asked for a report on raising the existing rate inside the Crows Nest TOD precinct. The feasibility study found apartments and shop-top housing there could support up to 10%. Separately, officers have started early work on an LEP amendment to slow the loss of older, cheaper rental flats that are being replaced by fewer, larger dwellings.

When could it start?

Not soon. The scheme still needs Local Planning Panel advice and another Council report, then a DPHI Gateway determination, public exhibition and gazettal. Even then, the first 2% rate would start six months after gazettal. We would not expect it to bite on DAs lodged in the next few months. However, anyone buying a development site in Neutral Bay, Cremorne, North Sydney or Kirribilli should start factoring it into their land value.

Contributions Plan Amendment No. 2: co-living and affordable housing

Council exhibited Amendment No. 2 to the North Sydney Local Infrastructure Contributions Plan 2020 from 6 July to 3 August 2026 and adopted it on 14 September. It received 70 submissions. Council says it did not change the works schedule. The changes that matter for applicants are:

• Co-living housing is now listed as its own residential type. It uses the same occupancy assumption as boarding houses (1.4 persons per room) and the same section 7.11 rate: $13,685 per room before indexation, or $17,294 per room at June 2026 CPI, according to Council’s report.
• Affordable and social housing exemption narrowed: only affordable or social housing provided in perpetuity by a social housing provider is exempt. A section 88E covenant must be registered before the occupation certificate. In practice, the 15-year affordable housing you add to get the State’s infill affordable housing bonus does not attract the exemption.
• Cost Summary Report template updated, so that section 7.12 levies (a percentage of the cost of works) are calculated more consistently.

If you are planning an infill affordable housing scheme under the Housing SEPP, budget for full local contributions on the affordable component unless it will be held in perpetuity.

Will my neighbours still be notified about my DA?

Often, no. From 1 September 2026 the NSW Government’s statewide Community Participation Plan replaced Council’s own notification rules. According to Council’s notice, it no longer sends letters for a range of developments up to two storeys, including:

• new houses, and alterations and additions to houses
• dual occupancies and secondary dwellings
• attached dwellings (up to five)
• modifications to approvals for these types

In its 12 October 2026 report, Council said it used to notify about 90% of the applications it received, and that up to 90% of those will no longer be notified. After the draft plan was exhibited, the State removed residential flat buildings and shop-top housing from the exemption list, so those are still notified. Local DAs that are notified still have a minimum 14-day exhibition, and longer where there is significant public interest.

Council flagged one practical risk. Whether a DA is exempt can depend on whether it complies with height and FSR controls or needs a clause 4.6 variation, and that is not always clear at lodgement. If a design is close to a standard, document compliance clearly in your Statement of Environmental Effects so the notification decision is right first time.

If you are a neighbour: no letter does not mean no DA. Council points residents to its DA tracker, its DA notifications e-newsletter and PlanningAlerts.

If you are the applicant: no notification does not mean no objections. Talking to the neighbours before you lodge is still the best way to avoid a late complaint, especially on narrow North Sydney lots where overshadowing and privacy are tight.

SSDs and the Housing Delivery Authority: big sites are bypassing Council

Council’s 14 September report sets out how much of North Sydney’s growth is now decided by the State:

Of 37 North Sydney proposals the Housing Delivery Authority has considered since January 2025, 17 were declared SSD, 17 were not and 3 were deferred. Council noted that on 18 August 2026 the Authority recommended declaring a 20-storey proposal at 257–263 Military Road, Cremorne, as SSD. In the Crows Nest TOD precinct, residential projects worth more than $60 million can use the SSD pathway until 30 November 2027.

Two points matter for owners. First, Council notes that the SSD pathway does not completely override LEP permissibility and development standards (unless a concurrent rezoning changes them), but the DCP is only a guide. Second, SSD housing exhibitions can be as short as 14 days, so neighbours need to watch closely. Council launched an interactive SSD map in late September to help.

How fast is North Sydney deciding DAs?

According to Council’s planning performance report of 28 September 2026, average DA determination time was 83 days in 2025–26, against the Ministerial target of 105 days. It was 77 days early in 2026–27, against the new 90-day target. Average lodgement time was five days. In July, Council also approved joining other councils on a new development assessment platform. A complete, well-coordinated application is still what keeps a DA at the fast end of those averages.

Heritage: what to watch

• Heritage pubs: Council announced in August that a review of the remaining heritage pubs is beginning, with a consultant brief being prepared. It will identify venues of heritage significance and consider how to protect them. If you own or are buying an older hotel, check this before committing to a redevelopment design.
• 27–37 Bydown Street, Neutral Bay: Council’s proposal to list six cottages as local heritage items (PP-2026-847) has been in DPHI adequacy assessment since April 2026. It followed an interim heritage order and an apartment DA that is now before the Land and Environment Court.

Where heritage is in play, early advice saves redesign. See our heritage conservation design service.

Neutral Bay: three height proposals still with the State

Council’s Neutral Bay Village Planning Study (adopted May 2024, with a six-storey cap) is being tested by three landowner proposals. None had been made into law when we checked on 22 October 2026:

• 183–185 Military Road (PP-2023-699): 16 m to 43 m. It is at finalisation with DPHI, which received it back for LEP drafting on 17 March 2026. An affordable housing viability assessment is on file.
• 41–53 Grosvenor Street (PP-2025-0713): 16 m to 31 m was sought. In April 2026 Council supported sending it to Gateway with amendments, including a 28 m height plus 3 m for rooftop structures and a solar access plane to protect the future Grosvenor Plaza.
• 166–188 and 198–214 Military Road (RR-2025-15): Council did not support it, and it is in a State rezoning review. The record of decision is on the Planning Portal.

Council’s LEP page lists Mapping Amendment No. 8 (1–7 Rangers Road and 50 Yeo Street, March 2025) as the latest change. We could not check the NSW legislation website directly this week, so confirm the current LEP maps before you rely on them.

Reminder: new homes in North Sydney must be all-electric

North Sydney DCP 2025 has applied since 22 September 2025. DAs lodged before then are still assessed under DCP 2013. Amendment No. 1, adopted in February, came into force on 1 July 2026. It phases out gas connections and gas appliances in new residential development through Section 10 (Environmental Sustainability). Plan for heat-pump hot water, induction cooking and enough switchboard capacity from concept stage. Our guide to all-electric homes in NSW covers the basics.

Crows Nest open space funding in doubt

On 12 October 2026 Council backed the Mayor’s response to a letter from the Planning Minister, dated 4 September, that raised the possible withdrawal of $9.3 million committed to Hume Street Park Stage 2. Council will write to the Premier and continue planning the park. This does not change the planning controls, but it is relevant to how the Crows Nest TOD precinct’s infrastructure is funded.

Practical next steps

• Apartment or shop-top sites: run feasibility with and without a 2% to 4% affordable housing contribution, and track the scheme through Gateway.
• Co-living: budget local contributions at about $17,294 per room (June 2026 indexation). The rate is indexed again at consent and at payment.
• Infill affordable housing (15-year): do not assume a contributions exemption.
• Houses and dual occupancies: expect no neighbour notification, but still talk to the neighbours and make compliance easy to see in your plans. See dual occupancy vs duplex.
• Any new home: design all-electric from day one.

Related giantA resources

• All services
• Architectural services (DA / CDC / Class 2)
• Heritage conservation design
• Northern Beaches planning updates October 2026
• Penrith planning updates October 2026

FAQs

Does North Sydney charge an affordable housing contribution now?

Only inside the Crows Nest TOD precinct, under clause 7.5 of North Sydney LEP 2013. The LGA-wide scheme Council endorsed on 14 September 2026 is still being prepared. It needs Panel advice, a Gateway determination, exhibition and gazettal, and the first 2% rate would start six months after gazettal.

Will the affordable housing levy apply to my dual occupancy or new house?

Not as proposed. Council’s report recommends applying it to residential flat buildings and shop-top housing only. Houses, dual occupancies and terraces were found unviable to levy across most of the LGA, although Council may revisit other housing types after more feasibility testing.

What are the local contributions for co-living in North Sydney?

Under Amendment No. 2, co-living uses the boarding house rate: $13,685 per room before indexation, or $17,294 per room at June 2026 CPI. It is indexed again at consent and at payment. Affordable or social housing is exempt only if it is provided in perpetuity.

Why didn’t I get a letter about my neighbour’s DA?

Since 1 September 2026, the statewide Community Participation Plan does not require notification for many developments up to two storeys, including new houses, alterations, dual occupancies and secondary dwellings. Check Council’s DA tracker or sign up for its DA e-newsletter to stay informed.

Next step: Request a North Sydney DA design review with giantA. We provide architectural services and approvals documentation for homes and small developments across Greater Sydney.