• 1. Changes to the Objects of the Act

  The Bill proposes significant changes to the objects in section 1.3 of the Act, the most material being:

  • Removing the object of promoting the sharing of responsibility for environmental planning and assessment between different levels of government in the State.
  • Removing explicit references to increased opportunity for community participation.
  • Introducing a proportionate and risk-based approach to environmental planning and assessment.[1]

  Notably, the Objects of the Act now include:

  • to promote the supply, delivery and maintenance of housing, including affordable housing,
  • to promote productivity through the development and management of the State and its resources, and;
  • to promote resilience to climate change and natural disasters through adaptation, mitigation, preparedness and prevention.
• 2. Centralisation of Planning Authorities

  Housing Delivery Authority

  • The Housing Delivery Authority (HDA) is to be formally incorporated into the NSW planning system. (It is already established as a government agency under the Environmental Planning and Assessment (Housing Delivery Authority) Order 2024).
  • The HDA is a panel of senior NSW government officials – including the Secretary of the Premier’s Department, Secretary of the Department of Planning, Housing and Infrastructure, and Chief Executive of Infrastructure NSW – that currently recommends major housing development proposals to be declared State Significant Development (SSD).
  • The HDA will now have broad powers to direct amendments to environmental planning instruments without needing to meet the standard requirements for amendments, with the HDA able to make changes if it considers it “necessary or convenient to enable the carrying out of development declared to be SSD”.[2]
  • The Minister is now required to publish reasons for any decision not to accept a recommendation from the HDA.[3]

  Development Coordination Authority 

  • The Planning Secretary has also been given functions as the Development Coordination Authority (DCA) to consolidate agency input for integrated development.[4]
  • Instead of multiple separate responses on integrated development from each relevant agency, the DCA will provide a single cohesive response that covers concurrences, referrals and general items of approval.
  • Under the amended section 4.47(2), before granting development consent for integrated development, the consent authority must obtain from the DCA the general terms of each approval that the DCA proposes to be granted. This ensures that all relevant approvals under other legislation are identified, and their conditions incorporated into the consent. [5]
• 3. Abolition of Regional and District Planning Panels

  The Bill has introduced changes which signal a shift in the governance structure for development assessment, with decision-making responsibilities transitioning from elected representatives to appointed panels. In particular, the Bill:

  • Abolishes the government appointed Sydney district and regional planning panels which, along with the Independent Planning Commission (IPC), were introduced to bring independence and transparency to the decision-making process for significant and complex developments.[6]
  • Proposes the roll out of local planning panels across local government areas in regional areas, removing local councilors from the development application (DA) decision-making process.[7]
• 4. Environmental assessment and conditions

  Environmental Impact Assessment

  • Section 4.15(1)(b) of the Act has been amended to require the consent authority to only take into consideration the “significant” likely impacts of the development, rather than all likely impacts.[8]
  • The definition of “development standard” has been amended.[9] The amendment is intended to clarify the ambiguity that has arisen from – and been criticised in – judgments over the years. The new definition, will mean a requirement in a local environmental plan or state environmental planning policy will only be a ‘development standard’ if it is explicitly identified as such in the document.

  Standard and Model Conditions

  • Currently under s 4.17(11) of the Act, a development consent is subject to such conditions as may be prescribed by the regulations. The Bill replaces that section and now provides for standard and model conditions (which may be specified by a SEPP) for development consent, with the intent to create certainty for applicants and set limits on imposed conditions.[10]
  • A condition does not have effect to the extent it is inconsistent with a standard or model condition prescribed or specified under s 4.17(11) or (12) that applies to the development.
  • Consent authorities will be able to impose conditions that relate to a “likely impact” of the development. This amendment should be viewed in broader context of the Bill’s amendments to the evaluation stage of developments under section 4.15 of the Act, which will now require a consent authority to consider the significant likely impacts of a development when determining a DA.
  • In some circumstances based on the type or scale of development, consent authorities will also be required to consult with applicants before finalising conditions of consent and to consider comments made in the review.

  Section 5.5 Duty to consider environmental impact

  • The Bill has amended section 5.5 of the Act to narrow the current duty of determining authorities to examine and take into account to the “fullest extent possible all” matters affecting or likely to affect the environment by reason of an activity.
  • Rather, determining authorities must take into account matters in a manner that is “proportionate to the nature and risk of the activity”.[11]
• 5. Simplification of planning pathways

  Targeted Assessment development pathway

  • The Bill introduces a ‘targeted assessment’ (TA) development pathway which seeks to bridge the gap between complying development and a full DA assessment.[12] This new pathway will apply to development – both small and large-scale proposals – that have had planning issues addressed up-front through strategic planning or development codes.
  • A SEPP may specify criteria that certain development must meet in order to be TA development. TA development will exclude designated development, such as coal mines and electricity generating stations.[13]

  Expansion of Complying Development

  • Complying development will be expanded to allow for minor variations to applicable development standards for complying development without requiring a full DA via a new mechanism called a variation certificate.[14]
  • Applicants can apply to vary the standards for things like setbacks from the lot boundary, minimum landscaping requirements or site requirements such as the width of a lot.
  • Variation applications must be decided on within 10 days – or 20 days if the council is also assessing the complying development certificate – otherwise it is deemed to be approved.[15]
  • The variation process will be reliant on a EPI specifying which development standards may be varied by a variation certificate. The new provisions also allow for the regulations to prescribe additional matters, including the process to obtain a certificate and the maximum number of variations that can be sought. Variation certificates will only be able to be issued by councils or from another person prescribed by the regulations.[16]

  Minor Modifications

  • The Bill expands the scope for minor modifications and creates new pathways for modifications with no environmental impact.
  • A new time-frame is also to be imposed under this amendment for the determination and refusal of modification applications. If the modification application is not decided within 14 days, the consent authority will not be able to refuse it. 

  Overall, the introduction of deemed approvals and shortened timeframes may shift procedural risk to councils, particularly where administrative capacity is constrained. 

• 6. Historical development consents

  The Bill expands the powers of local council and the Planning Secretary for modifying and revoking development consents. 

  This includes:

  • where the development is inconsistent with environmental planning instruments or outcomes, the consent may be revoked and compensation paid to the landowner; or
  • in other cases, the Planning Secretary or councils may issue orders to direct that works be completed in a specified time.

  Amendments passed clarify that revocation powers may only be exercised by the Planning Secretary and only in relation to development consents granted more than 25 years ago.[17]

• 7. Coordination of community participation

  The Planning Secretary will now be tasked with preparing a single, statewide community participation plan that applies to all authorities and functions.[18]  

  The Bill: 

  • sets aside all existing local council community participation plans, while allowing local councils to adopt their own engagement strategies or policies, so long as they are consistent with the statewide plan; and
  • allows the Planning Secretary to set the public exhibition timeframes for different types of development based on their impacts. 

  The Planning Secretary will be required to publish the statewide community participation plan on the NSW legislation website. 

  Amendments passed also mean the community participation plan will be treated as a statutory rule under the Interpretation Act 1987, enhancing its legal status and enforceability.[19]

Key takeaways 

The reforms made by the Bill represent a significant update to the structure and operation of the NSW planning system. They introduce new mechanisms aimed at improving coordination, streamlining assessment pathways, and aligning planning processes with broader strategic objectives.

While the Bill includes measures intended to enhance efficiency and responsiveness, it also introduces changes that will affect the roles and processes of councils, the scope of environmental assessment, and the framework for community participation. These changes will require careful consideration by stakeholders to ensure alignment with local planning priorities, statutory obligations, and governance expectations.

As implementation progresses, it will be important for the Planning Secretary and relevant authorities to provide clear guidance and maintain transparency in decision-making. 

_{[1] Item 1 of Schedule 1 to the Bill omits section 1.3(a)-(j) of the Act and inserts instead section 1.3(a)-(k) into the Act.} 

_{[2] Item 42 of Schedule 1 to the Bill inserts section 3.22(d) into the Act.} 

_{[3] Item 16 of Schedule 1 to the Bill inserts section 2.11C(2) into the Act.} 

_{[4] Item 16 of Schedule 1 to the Bill inserts Division 2.3B into the Act.}

_{[5] Item 5 to Schedule 1 of the Bill proposes to insert new wording into section 4.47(2).} 

_{[6] Item 18 of Schedule 1 to the Bill omits Division 2.4 of the Act and replaces it with regional planning panels.} 

_{[7] Item 20 of Schedule 1 to the Bill amends section 2.17(1) of the Act.}

_{[8] Item 62 of Schedule 1 to the Bill amends section 4.15(1)(b) of the Act.}

_{[9]  Items 3 and 4 of Schedule 1 to the Bill amends sections 1.4(1) to replace the definition of ‘development standards.} 

_{[10] Item 67 of Schedule 1 to the Bill replaces 4.17(11) of the Act.}

_{[11] Item 113 of Schedule 1 to the Bill omits “to the fullest extent possible all” from section 5.5(1) and Item 114 of Schedule 1 to the Bill inserts section 5.5(2) into the Act.} 

_{[12] Item 68 of Schedule 1 to the Bill inserts Division 4.3A into the Act.}

_{[13] Item 69 of Schedule 1 to the Bill inserts section 4.20A(5) into the Act.} 

_{[14] Item 75 of Schedule 1 to the Bill inserts section 4.31A into the Act.} 

_{[15] Item [18] of Schedule 2 inserts section 159A into the Environmental Planning and Assessment Regulation (2021) (EP&A Regulations).} 

_{[16]  Item 76 to Schedule 1 of the Bill inserts section 4.31A into the Act.} 

_{[17] Item 12 of Schedule 2 inserts section 116A into the Regulations.} 

_{[18] Item 29 of Schedule 1 to the Bill replaces section 2.23(1) of the Act.}

_{[19] Item 29 of Schedule 1 to the Bill adds further sections (1A) and (1B) to the Act.}