Draft Gateshead Medical Precinct Planning Proposal

A planning proposal is a formal request to change the planning permissions that apply to a piece of land under the Lake Macquarie Local Environment Plan 2014. 

The proposal would support the health and wellbeing needs of our growing and ageing community. It could also create local jobs, provide more housing choices, strengthen the local economy and improve public spaces for residents, workers and visitors. The proposal is informed by independant Economic Demand Analysis, a Transport Study and a Visual Impact Assessment. 
 

This planning proposal seeks to change land use conditions of the land within the planning proposal footprint - either the maximum building height, land use zoning or both. These proposed changes would encourage long-term growth of a health and wellbeing precinct, centered around Lake Macquarie Private Hospital by allowing a wider mix of uses including: 

- more health and medical services, along with supporting shops and businesses 

- a wider range of housing choices, including townhouses and apartments

- taller buildings in suitable locations.  

These changes provide additional options about what can be built on the land but do not require any action by existing landowners. 

If a landowner chooses to develop their property, the application will still need to go through the relevant assessment and approval processes to ensure it meets the requirements for things like building setbacks, landscaping, parking and detailed design. 

The proposal would support the health and wellbeing needs of our growing and ageing community. It could also create local jobs, provide more housing choices and improve public spaces for residents, workers and visitors. 

The main project page shows two tabs with colour-coded maps of the proposed changes - one tab for maximum building height and one tab for land use zoning. Find your property on both maps to understand the proposed changes.  

If the planning proposal is approved, the Lake Macquarie Local Environment Plan 2014 will be updated to reflect the changes to the land use conditions.

Gateshead is already home to important health services, including Lake Macquarie Private Hospital and many specialist and consulting rooms.  

Both the Hunter Regional Plan 2041 and the Greater Newcastle Metropolitan Plan 2036 identify the opportunity for Gateshead to evolve into a regional level health‑focused precinct. Updating land use planning conditions will help enable this vision and support a range of benefits for the city, including improved access to health and wellbeing services for our growing and aging population, job creation and greater housing diversity.  

Land use zoning decides how land can be used and what types of development can occur on it, such as housing, shops or conservation areas. 
The activites and development permitted within each zoning category is set out in the Lake Macquarie Local Environment Plan 2014.

Maximum building height is the maximum allowable height of a building on a property. It prescribes a maximum limit but does not mean all future development will be this height.  

In 2025, the NSW Government
approved two State Significant
Development applications to allow
either a six-storey or a 10-storey
hospital expansion to be built. This
will allow for more surgery theatres,
ward beds, car parking and consulting
suites, alleviating the strain on the
existing 187-bed facility. The hospital’s
main entrance will move from Sydney
Street at the southern end of the site
to Casey Street at its northern end.

Studies show that key intersections can handle future growth with some targeted upgrades, such as improvements to the Pacific Highway and Sydney Street intersection.
We understand that finding parking in the area can be challenging. Council has already explored a range of parking options and will continue to look into further solutions. For any new developments, off-street parking will be required in line with Council’s Development Control Plan 2014 and will be assessed through the development application process.
Council will also keep improving walking, cycling, and shared pathways to make it easier and safer for people to get around the area.

Current parking initatives Council is currently undertaking In Gateshead include:

1. A driveway line marking program is available for Gateshead residents to help prevent vehicles parking across driveways. Residents can make an application here: Driveway Line Marking - Lake Macquarie City Council
2. Recent parking changes in Sydney Street and the hospital access road include a balanced mix of 'No Parking' restrictions and timed parking spaces. The changes are designed to support safe pick-up and drop-off areas, improve access for deliveries, and encourage parking turnover, helping more people access parking throughout the day.

A draft area plan has been prepared and will be submitted with the planning proposal. This plan provides detailed guidance to shape the desired future character of the precinct. It includes people-focused urban design principles, access and transport improvements, parking considerations, building design guidance and enhanced public spaces. This will help create a vibrant and connected precinct that supports the way people live, move and interact as the area evolves.

The proposal is supported by three independent studies: an Economic Demand Analysis, a Transport Study and a Visual Impact Assessment. 

The main project page shows two tabs with colour-coded maps of the proposed changes: one tab for maximum building height and one tab for land use zoning. You will need to find your property on both maps to understand the proposed changes.  

These maps are also available in a hard copy project update (October 2026) which was sent by addressed mail to all landowners at the start of the public exhibition period.

If you would like to review the full draft planning proposal and full area plan they are available to download and a hard copy is available to view at Windale Hub, bilyabayi. 

At the start of the public exhibition period, Council will directly contact all landowners within the planning proposal footprint with an addressed letter and information about the proposal, including maps showing the proposed changes to land use conditions, how to make a submission, and opportunities to drop in and chat to project staff. 

After the NSW Goverment has made a decision on the proposal, Council will directly contact all landowners again to inform them of the outcome.  

If the planning proposal is approved, you will continue to have control over your property. It does not require you to make any changes to your property or the way you currently live. It would change the land use conditions that apply to the land - either maximum building height, zoning or both. 

These changes provide additional options about what can be built on the property but do not require any action by existing landowners. 

If a landowner chooses to develop their property, the application will still need to go through the relevant assessment and approval processes to ensure it meets requirements for things like building setbacks, landscaping, parking and detailed design. 

Not straight away. Changes to zoning or maximum building height limit do not automatically increase your rates. However, if these changes increase the value of your land over time, this may be reflected in a future valuation by the NSW Valuer General, which could affect your rates later on. 

Land values are generally updated every three years by the NSW Valuer General for rating purposes. The NSW Valuer General considers zoning and development potential when determining land value, along with market sales and other factors.

If my rates increase, does that mean Council is collecting more money?
No. Council collects a fixed amount of total rates income each year. Changes in land values redistribute how that total is shared across all ratepayers.

No, the planning proposal does not include any compulsory acquisitions.  

You can make a submission by 9 November 2026 by:

• Completing online submission  
• Emailing council@lakemac.nsw.gov.au with the subject heading ‘Planning Proposal - Gatesead Medical Precinct’
• Write to Lake Macquarie City Council Attn: Integrated Planning, Box 1906, Hunter Region Mail Centre, NSW, 2310.

A hard copy of the draft proposal is available to view at Windale Hub, bilyabayi. 

Feedback may result in changes being made to the draft planning proposal prior to being sent to the NSW Government for a decision.  

If you made a submission, we will email you to let you know the outcome.  

Your submission can be as concise or as long as you wish.

Ideally, you will express your level of support for the proposal and provide detailed and specific feedback. The feedback will be reviewed by staff and later presented to Council to make an informed decision.

If you have made a reportable political donation or gift in the last two years your submission must be accompanied by a Disclosure Statement of Political Donations and Gifts where Council is Approval Authority - Submitters form. For more information on reportable political donations or gifts, or to download a copy of this form go to lakemac.com.au. Please note failure to complete a statement, if a political donation/gift has been made, is an offence under the Environmental Planning and Assessment Act 1979.

Any submission received by Council may be accessed under the Government Information (Public Access) Act 2009. Council may reproduce submissions in Council reports or in Court proceedings.

You can download the draft planning proposal, draft area plan and supporting studies in the documents section of this project page. 

 A hard copy of the planning proposal is available to view at Windale Hub, bilyabayi. 

If you have questions or would like to discuss with the project team, you're invited to drop in and chat to us at:

Wedesday 21 October 2026, 10am-2pm at Windale Hub, bilyabayi

Wedesday 28 October 2026, 3:30-6pm at Wiripaang Public School Hall, Gateshead. Access via car park off Hughes Street.