NSW paves the way for fast track planning

The New South Wales government’s long-awaited planning reforms finally hit the decks on Wednesday. And it was met with mixed reactions. Planners and property interests welcomed the move, but local government did not.

Key changes include the “single front door” for DA and planning proposals instead of seeking approval from a range of agencies and a new definition of complying development.

In the government’s view, the Environmental Planning and Assessment Act 1979, which is the state’s foundation for housing, infrastructure, and energy delivery, had become “overly complex and ill-equipped to meet modern challenges.”

“The current system has become a bottleneck in the state’s ability to build more homes – hurting housing supply, increasing costs and reducing community confidence,” Premier Chris Minns said.

[There are structural issues such as the cost of finance, steeply rising materials costs and labour shortages cited by anyone with a wider view of the issues – Ed]

“For too long, NSW has been hamstrung by a planning system that delays good projects and makes it harder to build the homes our communities desperately need.”

“Between 2016 and 2021, Sydney lost twice as many young people between the ages of 30 and 40 as it gained: 35,000 came to Sydney but 70,000 left.”

Planning Minister Paul Scully added, “In NSW, 90 per cent of development applications are for less than $1 million – to put it simply, we are sweating the small stuff. We need a planning system that supports the delivery of more homes, jobs and investment in an economically, socially and environmentally sustainable way.”

Planners agree with a more streamlined approach and cite their advocacy for this.

The Planning Institute of Australia said its discussion papers released in April, along with an expert forum with industry stakeholders, had helped shape the government’s bill.

PIA NSW President Sue Weatherley said, “Planners support a risk-based approach to development assessment – where low-risk, straightforward development can proceed through streamlined pathways – freeing up resources for more complex or higher-risk proposals.”

The Property Council of Australia’s NSW Executive Director, Katie Stevenson, agreed with the planners.

Meanwhile, Local Government NSW wasn’t pleased, saying more developments being certified as “complying development” meant “bypassing council’s local policies and development assessment pathways”.

Complying development currently allows two storey houses, renovations, dual occupancies, and townhouses to be built without formal council approval, but now “complying” projects with small variations must be approved by council in 10 days, or they will be deemed approved.

The association said this would remove the ability for councils and communities to determine important location and design considerations for development in their areas.

“LGNSW opposes the widespread expansion of state-wide complying development codes and policies that undermine councils’ local strategic plans and planning rules.”

While the government says it has consulted the opposition during the drafting process, it is unclear whether the bill will pass with bipartisan support. NSW opposition leader, Mark Speakman, said his party will approach the bill in “good faith”, noting the party is “pro-housing and pro-reform.”

Key outcomes

• Establish a Development Coordination Authority which will be the “single front door” for DA and planning proposals instead of seeking approval of “up to 22 state agencies”, such as the planning and environmental departments, Sydney Water and Rural Fire Services – preventing contradictory advice such as “RFS saying trees should be cleared for bushfire risk and planning department insisting on trees for cooling,” Minns said
• More development applications (DAs) now don’t require council approval – so long as it meets the detailed specifications set out in the State Environmental Planning Policy (SEPP) – it can get a tick from a council or certifier as long as it meets the SEPP
• Expansion of “complying developments (as above)
• A “targeted assessment pathway”, where proposals that have already been through strategic planning and community consultation won’t need to go through a full DA. An example, Scully said, that if an otherwise perfect house design were 20cm too close to the boundary, the assessment would focus on the impact of the overhang rather than reassessing the entire application – and little to no public exhibition would be needed, depending on strategic work done prior
• Amendments to the EP&A Act to include housing delivery, climate resilience and proportionality in planning decisions
• Updating the appeal and review process to encourage disputes to be resolved outside of the Land and Environment Court – Scully suggests a review by a different council officer
• Abolishing regional planning panels, which were introduced to examine regionally significant developments so that transport and services kept pace, independent of the minister – which the government says created “unnecessary duplication and delays”, the local planning panels, on behalf of councils, will remain
• Creating a community participation plan, a single, consistent community consultation approach across the state