Infill development and subdivision in Zone LR

As part of Government’s review into restrictions on lots in low density areas, the Minister for Lands, Planning and Environment asked the Northern Territory Planning Commission (the Commission) to look at ways to enable infill development in Zone LR in the Territory.

The Minister asked the Commission to examine potential options to allow infill development including changes to the number of houses you can build on a block, reducing the minimum lot size and changes to other subdivision design controls in Zone LR.

Minister accepts Planning Commission report following consultation

The Planning Commission has provided Government with an outline of matters raised during consultation and recommendations to amend the Northern Territory Planning Scheme 2020 (NTPS) to allow infill development and subdivision within Zone LR (Low Density Residential).

Based on the work of the Commission, the Minister has requested the Department of Lands, Planning and Environment prepare a planning scheme amendment to facilitate infill development and subdivision in Zone LR that aligns with the Commission's recommendations and policy positions.

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Background

In May 2025, the Northern Territory Government released the report "Saying ‘Yes’ to Business – Approvals Fast Track Taskforce Supplementary Report." The report contains recommendations aimed at implementing improvements to regulatory approval processes to eliminate unnecessary and burdensome regulations. The report advocates for greater flexibility in the application of regulations and recommended various planning reforms, including:

  • Recommendation 11 - allowing more flexibility in how regulations are applied, which focus on business complying with regulatory outcomes rather than specific activities.

The specific planning reform proposals related to Recommendation 11 are:

  • 11B – Review existing restrictions on lots that are currently restricted to single dwellings; and
  • 11C – Undertake a review of minimum lot sizes to ensure Design Codes support the delivery of housing supply.

On 10 November 2025, the Minister for Lands, Planning and Environment wrote to the Northern Territory Planning Commission (the Commission) requesting it undertake consultation with the community, with support from the Department of Lands, Planning and Environment to inform a report to the Minister on options to address the above planning reform proposals under Section 81B of the Planning Act 1999 (the Act).

The Minister provided a Terms of Reference to guide this work to identify opportunities within the NT Planning Scheme to:

  • Facilitate infill development to promote greater housing diversity and affordability, optimise the use of existing urban infrastructure and respond to contemporary residential needs and strategic planning objectives; and
  • Remove existing barriers to the subdivision of smaller lots within Zone LR.

A Discussion Paper was prepared by the Commission and released for consultation in late 2025 to seek feedback on options to facilitate infill. It presented these potential amendments to prompt community consideration and encourage informed submissions.

Consultation - Closed

The Northern Territory Planning Commission wanted to hear from you about how our low density urban neighbourhoods could develop into the future to best provide for the needs of people in the Territory.

The Commission explored, with the community and stakeholders, opportunities in the planning system, specifically within Zone LR (Low Density Residential) to:

  • remove barriers to providing a range of housing options in existing urban areas
  • provide additional flexibility and choices to landowners and residents/prospective residents of the NT
  • promote greater housing diversity and affordability
  • respond to contemporary housing needs
  • optimise the use of existing urban infrastructure

The input from community and stakeholders was to help shape a report to the Minister for Lands, Planning and Environment, including recommendations on how the NT Planning Scheme could be updated to support more infill development.

Consultation was open from 25 November to 20 December 2025.