The Western Sydney Granny Flat Ban is Lifted. Here's What You Need to Know.

If you own a property in Penrith, Liverpool, Camden, Fairfield, or Wollondilly, you may now have the right to build a granny flat that was previously off the table. At 5 Star Granny Flats, we've helped hundreds of Sydney families add secondary dwellings to their properties over 15-plus years, and this planning change opens the door for thousands of homeowners who've been waiting.

Here's everything you need to know about the change, whether your property qualifies, what conditions apply, and how to take the next step.

Why Was There a Granny Flat Ban Near the Airport in the First Place?

In late 2020, the NSW Government introduced restrictions on noise-sensitive developments, including secondary dwellings, in areas surrounding the then-under-construction Western Sydney International Airport (also known as Nancy-Bird Walton Airport). The goal was straightforward: limit the number of residents moving into areas that would eventually sit under flight paths, reducing future complaints about aircraft noise.

The restriction applied through an amendment to the Western Parkland City SEPP and captured broad swaths of South-Western Sydney, including parts of five local government areas. For homeowners in those areas, the ban meant one thing: no matter how large your block, no matter how much demand there was for affordable housing on your land, you couldn't add a secondary dwelling.

Some homeowners like Silverdale resident Lisa Osborn spent years, and over $100,000 in legal and planning costs, trying to secure an exemption. Others simply shelved their plans entirely. The restriction was widely criticised as a blunt instrument applied too broadly to areas that were never going to experience significant aircraft noise.

What Changed in May 2026?

The NSW Minns Labor Government passed amendments to the Western Parkland City SEPP through Parliament in the week leading up to 19 May 2026. Planning Minister Paul Scully described the previous restriction as having become an "artificial restriction" once long-term aircraft noise modelling was finalised.

The amendment uses the Australian Noise Exposure Concept (ANEC) maps as the planning reference point. The ANEC is a long-term forecasting tool that models aircraft noise across different operational scenarios for the airport, including the possible addition of a second parallel runway in future.

By anchoring the new rules to the ANEC contours rather than a blanket geographic ban, the NSW Government has created a more targeted approach. Areas expected to experience lower noise exposure, specifically those within ANEC zones 20 and 25 (the yellow and orange areas on the ANEC map), can now accommodate secondary dwellings.

What Are the Conditions?

The change does not remove all requirements. Secondary dwellings built in these areas must include noise attenuation measures. The most commonly cited requirement is double-glazed windows, which reduce the amount of aircraft noise that enters the dwelling. Additional acoustic specifications may also apply depending on your specific location and proximity to the nearest noise contour.

Which Areas Can Now Build a Granny Flat?

The planning change applies to eligible land in five local government areas. Whether a specific property within these LGAs qualifies depends on its position relative to the ANEC noise contours. Your block must sit within zones 20 or 25 — not in the higher-impact zones closer to the airport.

Local Government Area	Secondary Dwelling Now Permitted	Applies To
Penrith	Yes — eligible areas	ANEC zones 20 and 25
Liverpool	Yes — eligible areas	ANEC zones 20 and 25
Camden	Yes — eligible areas	ANEC zones 20 and 25
Fairfield	Yes — eligible areas	ANEC zones 20 and 25
Wollondilly	Yes — eligible areas	ANEC zones 20 and 25
Luddenham, Bringelly, Badgery's Creek	Still restricted	High-noise zones near airport

Western Sydney is one of Australia's fastest-growing regions, and many of the suburbs across these LGAs are within 30 minutes of the airport precinct and the Bradfield City Centre, which is being developed as a major employment hub. The NSW Government has specifically highlighted the planning change as a way to ensure residents can benefit from the opportunities the airport is generating — not just for jobs, but for housing.

Why This Matters for Western Sydney Homeowners

The reversal is about more than just paperwork. For the roughly 1,500 residents the government estimates will directly benefit, this is a genuine financial and lifestyle opportunity. At 5 Star Granny Flats, we've seen exactly what a well-built secondary dwelling does for a property — and for a family.

Multi-Generational Living

One of the most common reasons Sydney families come to us is to house a parent or grandparent on the same block. A secondary dwelling gives elderly family members independent space, their own entrance, their own kitchen and bathroom — while keeping them close. With property prices in Sydney, this is often a far more practical option than a separate purchase.

Rental Income

A granny flat in Western Sydney, particularly in a growing area close to the new airport employment precinct, can command strong rental yields. A quality 1 or 2 bedroom secondary dwelling can be a reliable passive income stream that genuinely increases the long-term value of your property.

Younger Adults Staying Home

With the cost of renting or buying in Sydney reaching record levels, a secondary dwelling gives young adults an affordable, independent space on their parents' property while they save for their first home. It's a practical solution that a growing number of families are choosing.

Is 60 Square Metres Enough?

The 60 square metre cap has attracted some discussion. Independent member for Wollondilly, Judy Hannan, who advocated strongly for the planning change, was candid: "We've been bargaining backwards and forwards and 60 square metres is where we've landed for the time being." She has indicated she'll continue to advocate for a larger allowable size.

Our range at 5 Star Granny Flats spans compact studio designs at 35 square metres through to fully featured 2-bedroom, 2-bathroom designs that sit right at the 60 square metre mark. A 60 square metre dwelling provides plenty of room for a comfortable 2-bedroom home with good living, kitchen, and outdoor areas.

Could You Build Both a Granny Flat and a Studio?

For properties outside the airport noise zone restrictions, it's worth noting that standard NSW complying development rules allow homeowners with blocks over 450 square metres to build both a granny flat (up to 60m²) and a smaller studio (up to 36m²) on a single lot — provided both are ancillary to the main home.

For properties in the newly opened Western Sydney areas, the rules are specifically limited to one secondary dwelling of up to 60 square metres. If your block is outside the ANEC zone, the standard complying development rules for the rest of Sydney may give you even more flexibility. The team at 5 Star Granny Flats can help you understand exactly what applies to your property.

How Do You Know If Your Property Qualifies?

The fastest way to confirm whether your block sits within the eligible ANEC zones is to have a qualified builder assess your property against the current ANEC contour maps. The maps are available through the NSW Planning portal, but interpreting them accurately alongside your specific zoning, lot size, and any overlays on your title requires professional eyes.

There are also factors that can affect whether complying development approval or a full DA is required. RU2-zoned land, for example, may face additional requirements even within the eligible noise contours. Blocks with heritage overlays, flood-prone land, or steep gradients need to be assessed carefully before you commit to a design.

See the Quality for Yourself

We've built hundreds of secondary dwellings across Sydney, from tight suburban lots in Blacktown to acreage properties on the outskirts of the greater metropolitan area. Our completed projects speak for themselves: clean lines, durable finishes, and layouts designed to live well, not just look good in photos.

Our display home is open at 2 Mary Street, Blacktown 2148. Walk through a completed granny flat, touch the finishes, test the materials, and speak directly with our experienced team. It's the best way to make an informed decision before committing to a build.

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Common Questions About the New Rules

Does the 60m² limit apply to all five LGAs?

Yes. The 60 square metre cap applies consistently across all eligible land in Penrith, Liverpool, Camden, Fairfield, and Wollondilly. The cap is a condition of the amendment, not a suggestion.

Do I need double-glazed windows throughout the entire dwelling?

The legislation requires aircraft noise attenuation measures, with double-glazed windows being the most commonly referenced. The specific requirements may vary by location. When we assess your property, we'll confirm exactly what acoustic specifications apply to your build.

Can I build a granny flat in Luddenham, Bringelly or Badgery's Creek?

No. The restriction on secondary dwellings remains in these suburbs, which sit in the highest noise impact zones immediately adjacent to the airport. This is unlikely to change in the near term.

I'm in Wollondilly on a large rural block. Does this apply to me?

Possibly, but with caveats. RU2-zoned land (Rural Landscape) may have additional conditions. Wollondilly also includes areas at the outer edge of the ANEC zone, so your block's exact position matters. A site inspection is the only way to get a definitive answer.

How long has 5 Star Granny Flats been building in Western Sydney?

We've been building in Western Sydney for over 15 years. Our team is award-winning and our hundreds of 5-star reviews across Sydney reflect the consistency of our work, our transparency on pricing, and our commitment to getting builds finished on time and on budget.

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