The Guidelines form the final and controversial report of the Planning Advisory Panel on Sex Workers Premises and suggested prostitutes should not have to apply for development approval to set up shop in suburban areas.

The report contains a number of even more surprising claims and recommendations.

It said that most sex worker clients were married, in stable relationships, disabled or pensioners, and "not undesirables."

It claimed to have found that most prostitutes were very happy in their jobs and did it for the same reason as other people in other jobs – "economic reasons."

It claimed sex workers should be treated as small businesses.

It said sex workers’ homes should be allowed as home businesses rather than brothels.

Although the report was commissioned by the Department of Infrastructure, Planning and Natural Resources, it was not intended as a government policy.

Planning Minister Frank Sator said the Government would not endorse the suggestions, and they are now superseded by a new Local Environment Plan.

"We will not be treating sex services premises as a standard home occupation, nor making them exempt from development approvals," he said.