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NSW LEP: What is a 'Home Industry'?

Home Industry -


means an industrial activity, whether or not involving the sale of items online, carried on in a dwelling, or in a building ancillary to a dwelling, by 1 or more permanent residents of the dwelling and not involving the following—

(a)  the employment of more than 2 persons other than the residents,

(b)  interference with the amenity of the neighbourhood because of the emission of noise, vibration, smell, fumes, smoke, vapour, steam, soot, ash, dust, waste water, waste products, grit or oil, traffic generation or otherwise,

(c)  the exposure to view, from adjacent premises or from a public place, of unsightly matter,

(d)  the exhibition of signage, other than a business identification sign,

(e)  the retail sale of, or the exposure or offer for retail sale of, items, whether goods or materials, not produced at the dwelling or building, other than by online retailing,

but does not include bed and breakfast accommodation or sex services premises.


Home Industries offer a practical and innovative approach for residents to operate small-scale industrial activities directly from their homes while maintaining the residential character of their neighbourhood.


This setup is ideal for artisans, craft producers or repair specialists who require space for equipment or materials but prefer the convenience and cost-effectiveness of operating within their dwelling or an ancillary building.


For example, a resident might use a backyard shed to craft handmade furniture or repair bicycles, selling their products or services online or by appointment.


These operations provide a balance between entrepreneurial ambitions and maintaining neighbourhood harmony.


By adhering to strict controls on emissions, noise and visibility of industrial activities, home industries minimise their impact on nearby residents.


This model supports local economies by encouraging small-scale production and fostering community-based businesses without the need for larger commercial or industrial premises.


When managed responsibly, home industries can thrive as sustainable, community-friendly enterprises, blending innovation and practicality within residential zones.


For a free quote in obtaining a Commercial Change of Use approval, click below:





Commercial Change of Use NSW - Home Industry


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