Can I Run a Business From My Home in NSW?
- Wasiq Khokhar
- Jul 1
- 2 min read
Updated: Jul 17
Running a business from home is becoming more common in New South Wales, especially with flexible work trends.
But whether you're running a consultancy, beauty room or online store, your setup must comply with NSW planning rules.
As a town planner NSW clients turn to for practical advice, I regularly assist homeowners with understanding what is allowed and how to gain council approval where needed.
What Is a Home-Based Business Under NSW Planning Rules?
Under NSW planning legislation, a home-based business is generally defined as a low-impact operation that takes place within or behind a dwelling.

It must not significantly alter the residential character of the area. Most councils allow home businesses by default, but some require a development application or DA approval, depending on the type, scale, and location.
For example, we assisted a client in the Inner West who wanted to operate a small physiotherapy clinic from their garage.
Because the garage faced a laneway and generated foot traffic, council required a statement of environmental effects for NSW DA and supporting drawings.
We prepared the necessary documentation, liaised with the assessing officer, and secured planning permit NSW within the expected timeframe.
Key Compliance Requirements to Consider
Home businesses must comply with building regulations NSW, fire safety codes, and parking requirements. In some cases, signage is allowed, but only if it remains unobtrusive and within local limits.
Noise, waste and delivery schedules also come under scrutiny. If your business involves regular customer visits or deliveries, planning advice should be sought early.
We’ve helped several small online retailers and bakers ensure their setups were compliant, especially where rear sheds or granny flats were being used for storage or prep.
These cases sometimes involve council submission for secondary dwelling NSW if the use overlaps.
When You Need a Town Planner
Not all home businesses need a formal DA approval, but many fall into a grey area. If your work creates more traffic, noise or activity than a standard residence allows, you may need approval for commercial change of use.
This is where a town planner for commercial change of use NSW can guide you through. We assess site conditions, advise on what your LGA allows, and prepare any documentation needed for smooth approval.
In heritage conservation areas, a heritage impact statement NSW town planning staff may request one before issuing consent.
Getting the Right Planning Advice from the Start
Starting with the correct planning advice for dual occupancy NSW or mixed-use sites is key if your property is already being used creatively.
If you're unsure whether your business meets the criteria, a town planner near me specialising in NSW DCP can help avoid unnecessary delays.
We often assist with Clause 4.6 variation request NSW scenarios where site conditions don’t neatly fit standard rules.
Our team also acts as a NSW town planning consultant for subdivision approval when business use evolves into more complex development needs.
Knowing how to get a DA approved in NSW starts with understanding how your business fits into your residential zone.
With the right planning support, many home businesses can operate legally, efficiently and with minimal impact on neighbours.
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