The City of Sydney has endorsed changes to planning controls in Sydney's CBD which could see the city's skyline rise by about 100 metres.
The changes will remove the 235-metre cap on building height limits and could allow for towers in Barangaroo, Central Station, Circular Quay and Town Hall to be as high as 330 metres.
Building heights in the city were capped for decades to stay below the Sydney Tower, which stands at 309 metres.
Crown's casino tower at Barangaroo was exempt from the limit and will reach 275 metres when finished.
Tom Forrest from Urban Taskforce welcomed the move.
"It was an arbitrary cap that was put in place when the Centrepoint Tower was originally constructed and the whole of Sydney was capped and limited in terms of its development," he said.
"Sydney is an international city — we should have tall buildings which match those that are the best in the world.
"Perhaps not the very tallest, but taller than the arbitrary cap that was placed in the 1980s and it's held Sydney back quite frankly since then."
Lord Mayor Clover Moore said it was a comprehensive plan which balanced the need for growth across the city while preserving the city's natural lighting and harbour views.
She said they were drawn in a way to cater for the two million people who will be travelling through the city's CBD on a daily basis by 2036.
It would also prevent buildings from overshadowing important public spaces.
The council also wants to triple the levy on new constructions to 3 per cent under the plan to raise more than $40 million a year for public infrastructure.
Liberal councillor Craig Chung opposed the levy increase and argued it would have an adverse impact on small businesses.
"For any business who wants to do a refurbishment or a fit out over $200,000 the tax of their contribution will be tripled under this plan," he said.
"I think that small businesses have really been struggling over the last few years … [it could be] a real kick in the guts."
However, the Lord Mayor defended the levy and said it was comparable with Liverpool, Newcastle, Chatswood and Parramatta.
The exhibition will be on display from late March for a 28-day consultation.
