Home-Based Businesses

In NSW there are three types of home-based enterprises:

1. Home Occupation
2. Home Business
3. Home Industry

Each of these terms are defined in the Wollongong Local Environmental Plan (Council’s LEP).

Home Occupation

home occupation means an occupation that is carried on in a dwelling, or in a building ancillary to a dwelling, by one or more permanent residents of the dwelling and that does not involve—

(a)  the employment of persons other than those residents, or

(b)  interference with the amenity of the neighbourhood by reason 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, or

(c)  the display of goods, whether in a window or otherwise, or

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

(e)  the sale of items (whether goods or materials), or the exposure or offer for sale of items, by retail,

but does not include bed and breakfast accommodation, home occupation (sex services) or sex services premises.

Home Business

home business means a business, 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, home occupation (sex services) or sex services premises.

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.

You can read more about home-based enterprises on the NSW Planning Portal.

Many types of home-based enterprises can be done as exempt development under a State policy, which means you don't need approval.  See the NSW Planning Portal for details.

Any home-based enterprise that involves food or skin penetration procedures needs approval.

For food-based businesses, depending on your proposed business, this can be approved through either a Development Application (DA) or a Complying Development Certificate (CDC).

For skin penetration home-based businesses, you must get approval through a Development Application.

If you're applying to run a home-based enterprise, there are some additional things you'll need to keep in mind.

Any home occupation:

• Must not employ anyone other than those living in the residence.
• Must not involve any retail, unless it is online retail sales only.
• Must not involve more than 30sqm and 10% of the floor area of the residence.

Any home business or home industry:

• Must not employ more than two employees (other than those living in the residence).
• Can include retail of items that have been produced on site and online retail sales of items that were not produced on site.
• Must not involve more than 30sqm for a home business and 50sqm for a home industry, and 10% of the floor area of the residence.

Your home-based enterprise must not interfere with the amenity of the neighbourhood.

You can display one small business identification sign.

If you need development advice please phone Council’s Duty Planner on (02) 4227 7111 between 9am to 5pm on work days.

For more information, see the NSW Planning Portal.

We're often asked what business activities people can run from home. Below is a list of some common activities we're asked about.

This doesn't cover every situation though, so we recommend you talk to us for development advice before setting up a new business.

Please remember, even if a business activity is allowed at your home, it must not interfere with the amenity of the neighbourhood. You also have to comply with any relevant rules and regulations.

If you're not sure, please check with Council's Duty Planner.

• Guide to starting and running a home business
• Starting a Home Business Fact Sheet