21 May 2025

Government releases 'missing middle' planning changes, design guide

| By Ian Bushnell
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townhouses

The changes will allow more townhouses and other low-rise housing types in Canberra’s suburbs. Photo: HIA.

Proposed changes to the Territory Plan aim to unlock land in Canberra’s established suburbs for more ‘missing middle’ housing, including removing the contentious 120 sqm limit for a second dwelling.

The ACT Government hopes the changes will encourage the construction of more low-rise apartments, townhouses, terraces and duplexes in the suburbs, but they are sure to attract criticism that they will erode the garden city and bush capital values.

The government has also released its Missing Middle Design Guide for consultation to accompany its draft Major Plan Amendment covering RZ1 and RZ2 zones.

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The proposals will make it easier to subdivide and consolidate land, build more homes on more blocks, and to higher levels.

Minimum block sizes for additional dwellings in RZ1 areas are to be removed to encourage granny flats and block subdivisions, as well as permitting townhouses, terraces and low-rise apartments to be built up to two storeys.

The government has yielded to industry complaints that the 120 sqm limit for a second dwelling was too prescriptive, not financially viable and was attracting few takers. There will now be no limit, and unit titling will be allowed above 600 sqm, instead of 800 sqm.

The number of dwellings allowed on a block in RZ1, currently two, will be guided by site context and dwelling density targets in the Residential Zones Technical Specifications.

Instead of just two blocks being allowed to be consolidated for supportive housing, consolidation will be available for all housing types with a general limit of 2000 sqm, 2500 sqm adjoining open space and paths, and 3000 sqm for the end of sections.

The rules are also being relaxed for cohousing projects, with no minimum block size. Cohousing is currently limited to blocks of 10,150 sqm or more.

In RZ2, building heights have been relaxed, with single homes and secondary residences able to rise two storeys plus an attic and three storeys for multi-unit housing.

This is to better reflect the transition in scale between RZ1 and RZ3 zones, but requirements around setbacks, building envelopes and over-shadowing must be met to limit impacts on neighbours.

The minimum block area for dual occupancies has also been removed and there will be no dwelling maximum.

Canopy cover requirements will increase from 15 per cent to 20 per cent, with site coverage requirements for the homes built across a block to remain at 45 per cent.

The government says architects and industry professionals have developed the draft design guide, and it will be the foundational document to be used by industry for the construction of the housing types the rule changes are meant to encourage.

Planning and Sustainable Development Minister Chris Steel: “Right now Canberra is characterised by single dwelling detached homes in the suburbs and high rise apartments in our town centres, without much housing stock in-between.” Photo: Ian Bushnell.

Planning and Sustainable Development Minister Chris Steel said the proposed changes were about providing more low-rise homes for first-home buyers, growing families, and those who want to age in place in their communities.

Mr Steel said this design-led approach sought to provide more homes but keep what Canberrans loved about their suburbs.

“We understand there is strong demand for moderately sized homes with a garden that will meet the needs of our growing and changing community,” he said.

“Right now, Canberra is characterised by single dwelling detached homes in the suburbs and high-rise apartments in our town centres, without much housing stock in between.

“These ‘missing middle’ housing reforms will permit low-rise multi-occupancy homes (two to three-plus homes on a block), townhouses, terrace homes and low-rise apartments in existing RZ1 and RZ2 zoned residential areas.

“I encourage everyone to have their say on the new design guide and the draft Major Plan Amendment and take part in shaping well-designed and sustainable housing options for our suburbs that meet the needs of current and future residents.”

The Property Council of Australia said the release of the draft reforms was a strong first step in addressing the city’s housing needs.

Property Council ACT & Capital Region Executive Director Ashlee Berry said the reforms reflected the agenda set by the Property Council’s Unlocking 60,000 Homes report released last year, which called for more medium-density housing, smarter planning reform and better use of existing land.

“We’ve made consistent calls for urgent zoning reforms to unlock more housing in Canberra – including our pre-election research released in August last year and our recent Budget Submission – so it’s great to see the government now taking action,” Ms Berry said.

“The changes announced today are a strong and significant step forward. More townhouses, duplexes, terraces and low-rise apartments in our existing suburbs will give more Canberrans the housing choice they’ve been crying out for,” she said.

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Ms Berry welcomed the release of the draft design guide and draft Territory Plan Amendment, saying the government’s design-led approach was critical to achieving community support and high-quality outcomes.

“We agree with the Planning Minister that better design, including on larger, consolidated sites, will deliver better homes, better streetscapes, and better neighbourhoods for current and future residents,” Ms Berry said.

“This is generational planning change that will bring our suburbs into the 21st century and start to unlock delivery of the housing we need, closer to services, shops and public transport.”

Ms Berry said the Property Council would continue to work closely with the government on the next stage of reforms to lift supply and improve affordability.

“There’s more to do – including on costs, taxes and charges – but the reforms announced today set some firm foundations.”

To have your say on the Missing Middle Housing Design Guide and the draft Major Plan Amendment, go to the YourSay Conversations website. Consultation closes 22 July. Long-form submissions will be accepted until 5 August.

A more detailed snapshot of changes proposed to residential zones in the draft Major Plan Amendment is also available.

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Protection of the environment and overpopulation are incompatible.

Yeah lets bugger up all the suburbs for people who love living in the suburbs

The government should stop allowing “knock down – rebuilds” on large blocks of land. If a house is knocked down, and the block is large, then 2 dwellings should be put in its place. The precent exists as this is exactly what the government did when they seized the Mr Fluffy blocks.

devils_advocate10:46 am 21 May 25

The dwelling replacement rules already require that the development must offer at least as much accomodation as what it replaced.

The commercial/financial incentives exist for (re)developers to maximise block utilisation – or at least they did until LVC was raised to an infeasible high level.

HiddenDragon9:06 pm 20 May 25

“There’s more to do – including on costs, taxes and charges…’

Dream on – the “missing middle”/densification push is much more about enabling another phase of property-related revenue gouging by a debt-ridden government, than it is about increasing housing choice and affordability. Any improvements to the latter will be minimal and coincidental.

devils_advocate10:02 am 20 May 25

The proposed developer licensing scheme, which imposes more serious liabilities on developers than are faced by the builder, will also discourage any redevelopment beyond duplexes.

devils_advocate10:01 am 20 May 25

None of this matters unless they address the punitive LVC regime (which, together with GST on buildings and multiple stamp duties, renders the majority of these “missing middle” developments unfeasible)

while I agree that the LVC is a ripoff, the govt wont address it given they have very little avenues of creating revenue. ACT Govts need to do more to increase private enterprise and industry so as to have another avenue for revenue.
At the moment, everything is funded by those who pay rates or dare to develop to then get swindled out of 10s of thousands in LVC charges

devils_advocate3:44 pm 21 May 25

Perhaps counter-intuitively, the LVC is not there to raise revenue, because it has reduced the volume of infil developments to virtually nothing.

The real purpose is to discourage infil developments altogether, so that they don’t compete with the ACT “governments” drip-feed new land release program.

Thats a good point!

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