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Whos the " senior " of the 2 town planner :) I had a similar case for my own Development site under Hornsby council....town planner said no for a triplex site....went to see a private town planner- that guy spoke to the "senior" town planner ( ie th manger of the initial planner i spoke to)...

^ only if your doing it under SEPP.... If going through non complying development - ie council...it can be as big or as small as you want....even some with lower/smaller set backs- pending council approval of course.