Generally, horses must not be kept within 9 metres (or such greater distance as Council may determine in a particular case) of a dwelling, school shop, office, factory, workshop, church or other place of public worship, public hall or premises used for the manufacture, preparation or storage of food.
The standards and regulations for the keeping of horses are available to view online:
Local Government (General) Regulations Schedule 2, Part 5, Division 3, Section 21
The NSW Department of Primary Industries has information about keeping horses, including;
NSW Departments of Primary Industries