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.