By Aaron Gadiel, Partner
The NSW Government has formally commenced round one of its planning system reforms.
On 15 December 2025, the Government ‘proclaimed’ certain parts of its Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025.
Mils Oakley published an article outlining key aspects of these reforms on 17 November 2025.
Most of the big-ticket reforms have not been commenced.
This article highlights some key changes that may be of interest to property developers and their consultants.
Firstly, the new objects of the Environmental Planning and Assessment Act 1979 (the EP&&A Act) have come into effect. The objects are generally more pro-development (pro-housing and pro-productivity).
This change to the objects does not affect any pending development application.
However, they are relevant to any pending proposal for an environmental planning instrument (e.g. a planning proposal).
The Development Coordination Authority has been formally established.
However, it has not yet assumed any statutory powers in relation to development assessment.
We expect that this will likely not occur until 1 July 2026 — to coincide with the transfer of staff from other agencies to the Department of Planning, Housing and Infrastructure.
The Housing Delivery Authority’s status has now been upgraded — from a mere panel established by Ministerial order — to a statutory authority established by an act of parliament.
There is also new power for amendments to environmental planning instruments — supported by the Housing Delivery Authority — to be expedited without following any of the usual processes. For example, there may be no need for the proposed change to be subject to a gateway determination or public exhibition.
A consent authority no longer needs to consider the significant likely impacts of other development (for which consent is not sought in the development application).
This reform does not apply to pending development applications, unless they are still undetermined on 15 December 2026.
A consent authority no longer needs to consider non-significant impacts (when considering impacts in development assessment).
This reform applies immediately to pending development applications.
Consent authorities are still able to consider non-significant impacts for the purposes of imposing conditions.
The Secretary of the Planning Department has a new power to revoke development consents that are at least 25 years’ old.
The legislation passed by parliament anticipates that Sydney district and regional planning panels will be abolished. This measure has not yet been formally implemented.
However, the Government has published the Environmental Planning and Assessment Amendment (Regionally Significant Development) Regulation 2025 — which comes into effect on 16 January 2026.
Under this regulation, the Sydney district and regional planning panels notionally remain in place, but new development applications will be determined on their behalf by local planning panels (when a local planning panel has been constituted for an area).
There are some transitional arrangements.
A council is not to determine a development application on behalf of a Sydney district or regional planning panel in any of the following three scenarios.
Scenario 1: the application was lodged before 4 September 2024.
Scenario 2: the council has submitted an assessment report in relation to the development the subject of an application to the applicable Sydney district or regional planning panel prior to either:
whichever is later.
Scenario 3: a ‘deemed refusal’ appeal has been lodged with the Land and Environment Court prior to:
whichever is later.
The practical effect is that, for new development applications, once a local planning panel is in place, the district or regional panel will be marginalised (even though the panel may, for now, still technically exist).
There are already local planning panels in place for all local government areas in the Sydney region, the City of Wollongong, the Central Coast and Wingecarribee.
Additionally, a new power is now in place for the Secretary of the Planning Department to establish local planning panels that cover more than one local government area. Members of local planning panels established in this way will hold office at the pleasure of the Secretary, rather than the local council.
This means that the Secretary now has the legal authority to abolish any existing local planning panel by creating a local planning panel that includes two or more local government areas.
Furthermore — in regional areas where local councillors still determine development applications — the Secretary now has the power to establish multi-local government area local planning panels and displace the councillors from their traditional role.
If you would like further information or have any queries regarding other matters, please do not hesitate to contact:
