The NSW Government has proposed changes to planning rules for industrial and employment land, aimed at allowing a wider range of modern industrial developments and making better use of existing sites.
The proposed changes went on public exhibition on 29 October 2026 and would provide greater flexibility for developments including distribution centres, multi-storey warehouses, freight and logistics facilities and infrastructure supporting online retail.
More Flexible Use of Industrial Land
Industrial and employment land supports manufacturing, freight, logistics, warehousing and other business activities across NSW.
Under the proposed reforms, planning controls would be updated to better accommodate newer forms of industrial development, including vertically designed warehouses and distribution facilities where land is constrained.
The changes form part of the NSW Government’s broader Industrial Lands Action Plan, which was introduced to create a more consistent statewide approach to planning, managing and monitoring industrial land supply.
The Department of Planning, Housing and Infrastructure is also progressing separate minor amendments to existing industrial planning controls following stakeholder feedback, with those changes expected to take effect before the end of 2026.
Statewide Industrial Land Framework
A key part of the Action Plan is the Statewide Policy for Industrial Lands, which was finalised in August 2026.
The policy introduces a framework for categorising industrial land according to its broader economic and infrastructure role.
Industrial areas can be classified as:
- state significant
- regionally significant
- locally significant.
The framework is intended to guide decisions about where industrial land should be protected, intensified or expanded as different regions grow.
In Greater Sydney, the former Retain and Manage approach has already been replaced through implementation of the new statewide framework under the Sydney Plan. Outside Sydney, existing regional planning arrangements will continue until the new categorisation system is progressively incorporated into regional plans.
New Targets for Regional Industrial Land
The government has also released proposed industrial land categorisations for Regional NSW, the Central Coast and Lower Hunter.
The framework includes indicative targets for development-ready industrial land of:
- 50 hectares a year across the Central Coast and Lower Hunter
- 40 hectares a year across Regional NSW.
Investigation Areas have also been identified where additional industrial land could potentially be brought forward, subject to infrastructure, servicing and planning constraints.
Consultation Open Until 26 November
The proposed planning changes and the regional industrial land categorisation are being exhibited separately.
Both consultations are scheduled to close at 5pm on Thursday, 26 November 2026.
Feedback received during the exhibition period will inform the final form of the planning changes before any new controls are implemented.
The reforms form the latest stage of the Industrial Lands Action Plan, which also includes the statewide industrial land policy and an ongoing Employment Land Development Program intended to improve the supply of development-ready employment land across NSW.
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