Proposed Reforms to the New South Wales Planning Framework

The New South Wales Government has introduced a comprehensive bill to revise the Environmental Planning and Assessment Act 1979. These proposed amendments are intended to expedite the development approval process, facilitate greater housing availability, and strengthen the system’s capacity to address climate-related vulnerabilities. By encompassing a broad spectrum of developments, from small-scale modifications to large infrastructure projects, the reforms represent a pivotal evolution in the state’s planning framework.

At the heart of the changes are updated objectives for the Act, which will now explicitly prioritize economic productivity, the expansion of housing stock, and enhanced resilience against environmental changes. A fundamental shift involves the integration of a risk-proportionate assessment methodology, whereby evaluations concentrate on substantial potential impacts while de-emphasizing inconsequential elements. This strategic focus is expected to streamline administrative procedures and reduce unnecessary delays; however, it may also heighten the likelihood of judicial interventions should ambiguities arise in determining the threshold for significant impacts.

In terms of practical application, consenting authorities will be required to limit their scrutiny to the most prominent foreseeable consequences of proposed developments during the review of applications. This includes explicit provisions to exclude considerations of effects stemming from ancillary or subsequent projects not directly part of the submission. Furthermore, forthcoming regulations will delineate factors that are deemed pertinent or extraneous to the assessment, thereby providing clearer guidance and superseding certain prior court interpretations that have complicated proceedings.

To enhance coordination and efficiency, the legislation establishes the Development Coordination Authority as a centralized entity responsible for managing approvals, referrals, and consultations across government agencies. By consolidating diverse inputs into a singular, cohesive determination, this authority has the potential to significantly mitigate bottlenecks that have historically impeded progress. Its success, nevertheless, will hinge on seamless collaboration among participating departments. Complementing this, the Housing Delivery Authority will be entrenched as a permanent institution, enabling streamlined approvals for major residential and mixed-use endeavors, inclusive of concurrent rezoning applications. Concurrently, the phase-out of regional planning panels will redirect oversight to local councils, prompting inquiries regarding the allocation of sufficient resources to ensure these bodies can adeptly manage sophisticated and high-volume submissions without compromising quality or timelines.

The reforms also introduce mechanisms to accelerate approvals through diversified pathways. A newly devised targeted assessment protocol will cater to developments where principal concerns have been preemptively resolved via strategic planning or established compliance standards, positioning it as a balanced alternative between fully exempt activities and exhaustive evaluations. In addition, the scope of complying developments will be broadened to accommodate minor variances from prescribed norms, with provisions for deemed approval should decisions not be issued within designated periods of 10 to 20 days, depending on the assessing authority. For post-approval adjustments, a dedicated expedited track will apply to modifications devoid of environmental implications, mandating resolution within 14 days or precluding any refusal.

Further refinements pertain to the management of consent conditions and dispute resolution. Authorities will be obligated, in specified instances, to furnish draft conditions for stakeholder review and to adopt standardized templates where applicable, thereby fostering uniformity and averting the imposition of untenable requirements. Notably, conditions may now be imposed to mitigate anticipated but non-critical effects, circumventing the need for comprehensive upfront analyses. The internal review process will be fortified by suspending appeal timelines during active deliberations, enforcing fixed decision deadlines, and affording applicants the flexibility to elect review by a planning panel rather than the council. Moreover, the elimination of a six-month restriction on deemed refusal appeals will permit filings at any juncture following the statutory assessment period, up until a final verdict is rendered, thereby incentivizing constructive negotiations over premature legal actions.

These amendments collectively aim to foster a more agile and responsive planning environment in New South Wales, balancing developmental ambitions with environmental stewardship. As the bill advances toward parliamentary debate in the coming weeks, stakeholders are advised to monitor developments closely, given the far-reaching implications for project timelines, compliance obligations, and strategic planning. For any questions, reach out to our property team at Strafurd York Legal on 1300 158 066 or write to us at property@strafurd.com.au.