A levy on new buildings in the centre of Sydney will be tripled, amounting to millions of dollars for high-rise towers, under a plan to raise up to $43 million a year for parks, paving and other public infrastructure.

Developers and business will be slugged with the proposed 3 per cent levy on building developments costing $200,000 or more, part of the biggest shake up of planning controls in the core of the CBD in more than four decades.

The changes will allow for towers to be built significantly higher in four areas set for more intensive commercial development, such as near Barangaroo, Circular Quay, Central Station and Town Hall. It will mean towers can be higher than 300 metres.

Building heights in the city centre have been capped at 235 metres for decades, apart from the 309-metre Sydney Tower and Crown's $2 billion casino tower under construction at Barangaroo, which was exempted from height limits and will reach 275 metres once completed.