The Planning Systems Reform Bill: Is it good or bad?

The NSW Government has presented a proposed new law to parliament that would significantly change the state’s land use planning laws. The changes are set out in the Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025. This article analyses the bill from the perspective of property developers and their consultants.
September 22 2025

By Aaron Gadiel, Partner

The NSW Government has presented a proposed new law to parliament that would significantly change the state’s land use planning laws.

The changes are set out in the Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025 (the bill).

A ‘bill’ is a proposed law that has been introduced into parliament, but has not yet passed.

The bill principally seeks to amend the Environmental Planning and Assessment Act 1979 (the EP&A Act).  It also proposes changes to some other legislation.

This article analyses the bill from the perspective of property developers and their consultants. It does not attempt to deal with every aspect of the bill. This article is not a replacement for legal advice.

Overview

In introducing the bill to the parliament, the Planning Minister, Paul Scully, said that the proposal ‘is a necessary reset of the way the planning system and its pathways work in NSW’.

‘It tackles the practical delays that are holding up the delivery of homes and job-creating projects and driving up costs.

‘It removes unnecessary red tape that has grown over decades, which may have had a purpose at a given point in time, but which has not stood the test of time.

‘It simplifies decision-making and makes sure that good development — development that has overall benefit — does not get stuck in the system but is still assessed properly,’ Mr Scully said.

The bill contains a series of very positive measures that, if properly implemented, will reduce some of the red tape of the NSW planning system.

Having said this, some measures in the bill have not been fully thought through — and may not work as intended by the NSW Government.

Furthermore, some measures in the bill are likely to make life more difficult for property developers.

New statutory objectives

The bill proposes four material changes to the ‘objects’ (objectives) of the EP&A Act.

The objectives of the legislation are important — as they are often used as a guiding principle when consent authorities carry out a merit assessment of a development application.  They can also inform decisions on whether (and how) planning controls should be changed.

The objectives already say that the planning system is there to:

  • promote the social and economic welfare of the community;
  • facilitate ecologically sustainable development;
  • promote the orderly and economic use and development of land;
  • promote the sustainable management of built and cultural heritage;
  • conserve threatened and other species of native animals and plants, ecological communities and their habitats;
  • promote good design and amenity of the built environment;
  • promote the proper construction and maintenance of buildings; and
  • provide opportunities for participation in environmental planning and assessment.

In terms of housing, the current objectives only reference the promotion of ‘affordable housing’. This is defined to mean a narrow class of rent-controlled housing — and does not include owner-occupied or other housing that can be enjoyed by a wider cross-section of the community.

The new objects broaden out the housing objective to ‘promote the supply, delivery and maintenance of housing, including affordable housing’. This sends a much clearer message to decision-makers that the planning system stands in favour of the delivery of all types of housing, not just ‘affordable housing’.

The current objects of the EP&A Act make no reference to productivity. Decision-makers under the Act have often shied away from taking into account the effect of their decisions on the economy or the productivity of individuals and enterprises. A new provision is to be inserted that says that it is an object of the Act to ‘promote productivity through the development and management of the State and its resources’. The concept of ‘resources’ includes land.

A new object is to be introduced to say that the EP&A Act is there to ‘promote a proportionate and risk-based approach to environmental planning and assessment’. This is a welcome sentiment, as we frequently see decision-makers (particularly at a local council level) sterilising land or limiting development in a way that is disproportionate to the risks that are cited in justification. This is often an issue, for example, in flood management and flood evacuation.

Finally, a new object is to be introduced for the Act to ‘promote resilience to climate change and natural disasters through adaptation, mitigation, preparedness and prevention’. It is pleasing that this objective recognises that adaptation and mitigation are appropriate tools. Most development applicants are willing to embrace adaptation and mitigation measures when needed.

The Development Coordination Authority

The bill creates a new ‘Development Coordination Authority’.

The first thing to appreciate is that this sounds like a major new institution, but, in truth, the Authority will simply be the Secretary of the Department of Planning, Housing and Infrastructure wearing a different hat.  It can be expected that the staff doing the work of the Authority will merely be officers of the Department.

The Development Coordination Authority will take responsibility for issuing ‘general terms of approval’ in lieu of other NSW Government agencies when they are required for integrated development.

The Planning Minister, Mr Scully, says that this ‘new authority will centralise decision-making and advice currently referred to multiple State agencies’.

Mr Scully says that ‘the authority will bring together experts from across government agencies to coordinate conditions on development applications.

In brief terms, general terms of approval are needed in the assessment of a development application when, to carry out the development, one of the following approvals would apply:

  • the issue of a bush fire safety authority under the Rural Fires Act 1997 by the Rural Fire Service;
  • various approvals under the Water Management Act 2000 by the Department of Climate Change, Energy, the Environment and Water;
  • various approvals under the Fisheries Management Act 1994 by NSW Department of Primary Industries and Regional Development;
  • the grant of Aboriginal heritage impact permit under the National Parks and Wildlife Act 1974 by the Department of Climate Change, Energy, the Environment and Water;
  • an approval under the Heritage Act 1977 by the Heritage Council;
  • an approval under the Coal Mine Subsidence Compensation Act 2017 by Subsidence Advisory NSW;
  • the grant of a mining lease or a production lease under the Mining Act 1992 and the Petroleum (Onshore) Act 1991 (respectively) through the NSW Department of Primary Industries and Regional Development;
  • the issue of an environmental protection licence under the Protection of the Environment Operations Act 1997 by the Environment Protection Authority;
  • the grant of a section 138 consent under the Roads Act 1993, but only in those rare occasions when the local council is not the roads authority (noting that the local council is typically the roads authority for most classified roads).

In the above circumstances, the bill proposes that the Development Coordination Authority would issue the ‘general terms of approval’ rather than the individual agencies referred to above.

Once development consent is granted, there will still be a need to obtain the actual approval from the relevant agency.  (The bill does not change the existing requirement that the subsequent approval must then be granted, consistent with the development consent, if an application is made within three years after the grant of the development consent.)

Additionally:

  • The Development Coordination Authority will assume the consultation role of Sydney Water for development that may affect it (under section 78 of the Sydney Water Act 1993).
  • The Development Coordination Authority will replace the Secretary of the Department of Climate Change, Energy, the Environment and Water as a concurrence authority for the limited number of development applications that include a biodiversity development assessment report, but do not propose to retire the credits that would ordinarily need to be retired under that report. In our experience the need for such a concurrence rarely arises.
  • The Development Coordination Authority will replace Secretary of the Department of Primary Industries and Regional Development as a concurrence authority on threatened aquatic species under the Fisheries Management Act 1994.
  • The Development Coordination Authority will replace Dam Safety NSW as a consultation authority under the Dams Safety Act 2015 .
  • The Development Coordination Authority will replace Hunter Water as a consultation authority under the section 51 of the Hunter Water Act 1991.
  • The Development Coordination Authority will assume some functions previously vested in the ministers responsible for the marine park and aquatic reserve management under sections 55 and 56 of the Marine Estate Management Act 2014.
  • The Development Coordination Authority will assume the concurrence role of Transport for NSW in relation to roads affected by a road widening order (under section 26 of the Roads Act 1993).

The bill does not contain any proposals to change the existing the concurrence and consultation arrangements with:

  • Transport for NSW (in relation to classified roads and traffic-generating development);
  • Sydney Trains/Transport for NSW (in relation to rail corridors); and
  • electricity transmission network operators.

The bill does not propose anything that will prevent local councils from referring development applications to agencies for comment in circumstances where such a referral is not actually required by law.

The success of this reform will probably depend on whether the public servants who actually have the expertise and authority to make decisions will be transferred Planning Department (the ‘Development Coordination Authority’). The reform might be seen as hollow, if all that happens is that another layer is created between a local council/development applicant and the public servant who has the expertise/practical authority to actually decide whether general terms of approval should be issued (and if so, what the approval should say).

For example, is the government actually proposing that the Planning Department (the ‘Development Coordination Authority’) will make all decisions on the issue of ‘general terms of approval’ concerning state heritage items without reference to the Heritage Council? If it is, this would be a measure welcomed by property developers. On the other hand, if the ‘Authority’ simply acts as a post box between the local council/development applicant and the Heritage Council, the reform may have little benefit and, in fact, may be negative.

Targeted development assessment

The Planning Minister, Mr Scully, says that ‘there is currently a gap between the faster complying development pathway and a full development application assessment process’.

Mr Scully says that ‘there is often a duplication of assessment, public exhibition and/or concurrence requirements, once, when consultation and consideration of important impacts have occurred up-front, and again, when those upfront assessments are again put on exhibition.’

To deal with this, the bill proposes a ‘targeted assessment’ pathway that will provide a ‘fast-tracked process’, bridging the gap between complying development and a full development assessment.

‘It will streamline the process by turning off unnecessary steps if the issues have already been addressed through up-front strategic planning or have been addressed through development controls or codes,’ Mr Scully says.

‘This new pathway will allow reduced or no public exhibition, depending on how much strategic work has already been done.

‘It could be used for both small-and large-scale proposals, as long as key planning issues have been resolved up-front or are adequately addressed in the planning controls. ‘If they have done the right thing and done the work up-front, eligible projects could cut assessment times by up to 50 per cent—down to under 50 days.

‘This will accelerate low-risk development, reduce duplication in assessment and free-up councils’ resources,’ Mr Scully says.

There are no details presently available as to what development might be identified as ‘targeted assessment development’.

The identification of ‘targeted assessment development’ would be made later, via a state environmental planning policy. The Planning Minister would, before implementing such a policy, be required to:

  • publicise an explanation of the intended effect of the proposed policy; and
  • seek and consider submissions from the public on the matter.

A development application for ‘targeted assessment development’ will only be subject to a limited merit evaluation.  In brief terms, it will be necessary for the consent authority to take into consideration, where relevant:

  • any environmental planning instrument (such a state environmental planning policy and a local environmental plan)
  • any proposed instrument that is or has been the subject of public consultation;
  • any development control plan;
  • any planning agreement;
  • certain matters for specific development types set out in the regulations; and
  • any submissions made.

However, the consent authority will be precluded from taking into consideration:

  • the significant likely impacts of that development, including environmental impacts on both the natural and built environments, and social and economic impacts in the locality;
  • the suitability of the site for the development; and
  • the public interest.

It is not, at this point, clear as to how beneficial this arrangement will ultimately turn out to be.

Firstly, the environmental planning instruments already conjure up a wide range of matters that require consideration.

If, for example, some types of residential flat buildings (of three or more storeys) were identified as ‘targeted assessment development’ without some further amendment to Chapter 4 (‘Design of residential apartment development’) of the State Environmental Planning Policy (Housing) 2021 (the Housing SEPP), the development would still require full assessment under all the provisions of the Apartment Design Guide.  Whether such a further amendment would be made is not presently clear.

Secondly, local council development control plans must still be considered, when relevant. (This does not apply to state significant development.)

Development control plans normally contain numerous provisions that must be addressed for a typical development. So, again, if the application of these development controls plans is to be limited for ‘targeted assessment development’, a provision will need to be included in some future state environmental planning policy or local environmental plan turning-off some or all of the development control plan (for such development). Again, whether such a provision would be inserted is not presently clear.

Thirdly, the bill’s language implies that matters of public interest, significant likely impacts of that development and suitability of the site for the development must still be considered if they arise out of an environmental planning instrument, development control plan or a planning agreement.  However, it does not expressly limit whether a consent authority would be obliged to consider such matters when they arise out of public submissions.  With the current legal wording, local councils are likely to argue that those matters, if raised in public submissions, must be considered.  (Hopefully this can be tidied up by parliamentary amendment before the bill is finalised.)

Decisions on development applications for ‘targeted assessment development’ could be appealed to the Land and Environment Court, as with standard development applications.

Conditions of development consent

The Planning Minister, Mr Scully, says ‘some [development consent] conditions make projects harder to deliver — or even unfeasible — because of the burden they place, even though the consent is granted’.

The bill makes two proposals in relation to conditions of development consent.

Firstly, a new provision will be inserted that requires — for certain kinds of development specified in future regulations — a consent authority to:

  • invite the applicant to make written submissions about the proposed conditions;
  • specify the period within which the written submissions must be made (being a period not less than seven days); and
  • consider the written submissions made within the specified period.

This would, of course, be a positive measure for development applicants.

It is not yet apparent which type of development will be subject to this new mandatory consultation regime.

Secondly, the bill allows a state environmental planning policy to specify a ‘model condition’.

A model condition may contain directions as to the:

  • the form and content of the model condition; and
  • the circumstances in which the model condition must be used.

A consent authority will be required to give effect to these directions when granting development consent or modifying a development consent.

The Planning Minister, Mr Scully, says that the introduction of model conditions ‘will be prioritised for housing projects’.

Model conditions, if well written, have the potential to make a developer’s life much easier.

Nonetheless, there is a risk that the conditions will be written inflexibly or inappropriately and create new problems. Time will tell.

Abolition of district and regional planning panels

The bill proposes the abolition of the state government-appointed district and regional planning panels.

This is a major move that reverses the trend of reforms that started in 2009. The trend has been to reduce local council influence for larger projects, that are likely to meet regional, rather than merely local needs.

At present there are five Sydney district planning panels:

  • the Sydney Eastern City Planning Panel;
  • the Sydney North Planning Panel;
  • the Sydney South Planning Panel;
  • the Sydney Central City Planning Panel; and
  • the Sydney Western City Planning Panel.

There are four regional planning panels:

  • Hunter and Central Coast Regional Planning Panel;
  • Northern Regional Planning Panel;
  • Southern Regional Planning Panel; and
  • Western Regional Planning Panel.

The panels consist of five members, two are appointed by the relevant local council, but the majority (three) are appointed by the NSW Planning Minister. Each panel chairperson is appointed by the Minister from the state appointees.

In simple terms, the district and regional planning panels generally deal with development that is not state significant where:

  • the estimated development cost is more than $30 million; or
  • the development is for affordable housing and the estimated development cost is more than $5 million.

These panels were first introduced in 2009, in part, through a recognition that these larger developments were often responding to a housing or employment-related demand that was unmet on a district-wide or regional scale. The idea was that the state-appointee majority would enable narrowly focused local council assessment reports to be challenged. Indeed, we have seen many instances of these panels supporting development (and granting development consents) when local council officers had prepared negative assessment reports.

Generally speaking, district and regional planning panels have (in our experience) demonstrated more independence from local councils when compared to local planning panels. Local planning panels are entirely appointed by local councils and whose members can be unilaterally sacked by a local council at any time.

The Planning Minister, Mr Scully, has told Parliament that the bill ‘will simplify the approval layers for development applications and focus accountability for making the final decision’.

This will be done by immediately abolishing the Sydney district planning panels (once the bill becomes law), and providing for the later abolition of regional planning panels.

In Sydney, the intention is to devolve any regionally significant development to local planning panels.

For regional areas, it seems that the intention is for the Planning Department to establish local planning panels that cover multiple local government areas. Where a local planning panel covers more than one local government area, its members will be appointed by (and can only be removed by) the Secretary of the Department of Planning, Housing and Infrastructure.

In regional areas, this has the potential to reduce the scope for local councillor decision making for development applications. At present, local planning panels are only mandatory in:

  • Greater Sydney;
  • the City of Wollongong;
  • the Central Coast; and
  • Wingecarribee

The rest of NSW still generally operates under the older system where councillors decide which development applications are refused or approved.

The intended roll-out of local planning panels across multiple local government areas, in regional areas, by the Department will remove local councillors from the development application decision-making in those areas for the first time (as a consequence of the existing section 4.8(2) of the EP&A Act, which is not proposed to be amended).

In some areas, that may be perceived as a negative by property developers, because, in many regional councils, local councillors can be more pro-development than in Sydney councils.  (Although in some coastal areas such as the Tweed Shire and Byron Shire, the sidelining of local councillors will likely be welcomed by property developers.)

However, in Sydney, it is hard to see how the abolition of district planning panels, with their state-government appointed majority, and their replacement with local planning panels (exclusively appointed by the local council) is anything other than a negative for development applicants.

Mr Scully also says that ‘the referral criteria for local planning panels will be updated to make sure they are focused on genuinely significant matters’.  This suggests that the Minister may increase the range of matters that can be dealt with by local council officers under delegation, rather than being dealt with by the local planning panel itself.

Re-jigging of modification application pathways

There are currently three pathways by which a development consent may be modified. (For the purposes of this analysis we are ignoring Court-granted development consents.)

Firstly, there is section 4.55(1). This provision allows a consent authority to approve a modification involving minor error, misdescription or miscalculation. The scope of such applications is very limited.

An applicant cannot commence a merit appeal to the Land and Environment Court for this type of application if:

  • the application is not determined in a timely way;
  • the application is refused; or
  • the application is approved in a way that was not intended by the applicant.

Secondly, there is section 4.55(1A). This provision applies to allow a consent authority to approve a modification, where the consent authority is satisfied that:

  • the proposed modification is of no or minimal environmental impact; and
  • the proposed modified development will be same or substantially the same as the originally approved development.

An applicant has appeal rights to the Land and Environment Court in relation to this type of application.

Thirdly, there is section 4.55(2). This provision applies to allow a consent authority to  approve a modification, where it is satisfied that the proposed modified development will be same or substantially the same as the originally approved development.

An applicant also has appeal rights to the Land and Environment Court in relation to this type of application.

The bill proposes to:

  • increase the scope of a section 4.55(1) modification application; and
  • reduce the scope of a section 4.55(1A) modification application.

A section 4.55(1) application would be expanded so that it could be used either:

  • to correct a minor error, misdescription or miscalculation; or
  • if the consent authority is satisfied the proposed modification has no environmental impact.

This would enable to a section 4.55(1) application to deal with (for example) procedural problems with conditions, in circumstances where the physical form of the development (and its social impacts) do not change.

A commensurate change would be made to section 4.55(1A). An application under section 4.55(1A) would no longer be capable of approval if it had no environmental impact. This would mean that any application made under section 4.55(1A) would generally either have to change the physical form of the development or change the social impacts of the development. A consent authority would need to be satisfied that the change to the environmental impact of the development was ‘minimal’.

The bill is proposing that a consent authority would be obliged to approve a modification application made under the new expanded section 4.55(1) if it is not determined within 14 days (other than in relation to a modification of the housing and productivity contribution condition).

However, a consent authority would still be free to impose conditions on the consent as a result of the modification application that are different from the conditions that the applicant sought. (The conditions would still need to legitimately arise from the issues raised by the modification application.)

Worryingly, for applicants, there would still be no right of merit appeal to the Land and Environment Court in relation to any conditions imposed as a consequence of a section 4.55(1) application. As such conditions may not be in the form sought by a developer (and may be more burdensome than anticipated), a developer would need to be very cautious about submitting any modification application under new expanded section 4.55(1) pathway.

Regretfully, the bill’s proposal to concurrently reduce the scope of section 4.55(1A) will mean that, if that pathway is to be pursued, some change to the development will need to be made that has an environmental impact (albeit one that a consent authority can be satisfied is ‘minimal’).

Alternatively, a developer may still pursue purely procedural changes to a development consent under section 4.55(2). However, section 4.55(2) applications typically have much higher application fees and often subject to public notification requirements.

The Government proposal is well-intentioned, but will introduce new procedural complexities to the selection of an appropriate modification pathway.

It would have been better if:

  • The bill, in widening the scope of section 4.55(1), also created right to appeal to the Court, to match the existing rights for section 4.55(1A) and 4.55(2) applications.
  • The scope of section 4.55(1A) was not reduced. This would allow an applicant to decide whether to pursue a purely procedural change under section 4.55(1) or section 4.55(1A).  Having this choice may be desirable when, for example, there may be some debate about whether a procedural change had no environmental impact.

Regretfully, this is only wishful thinking, unless the bill is amended in parliament.

Expansion in the power to revoke or modify development consents

At present, local councils and the Secretary of the Planning Department only have a limited power to revoke or unilaterally modify a development consent.

Right now, if it appears to:

  • the Planning Secretary, having regard to the provisions of any proposed state environmental planning policy; or
  • a local council (being the consent authority for a development consent), having regard to the provisions of any proposed local environmental plan,

that any development authorised by a development consent:

  • should not be carried out or completed; or
  • should not be carried out or completed except with modifications,

the Planning Secretary or local council may revoke or unilaterally modify that consent.

In our experience, this power is almost never exercised.

One reason for this is that the power to revoke or unilaterally modify a development consent has to be triggered by a proposed new state environmental planning policy or local environmental plan. If there is no proposed policy or plan available to justify such a revocation or unilateral modification, the revocation or unilateral modification would lack merit. (There is an appeal right to the Land and Environment Court when this power is exercised.)

The bill proposes to expand this power so that:

  • the Planning Secretary may revoke or unilaterally modify a development consent having regard to the provisions of an existing or proposed environmental planning instrument; or
  • a local council (who is the consent authority) may revoke or unilaterally modify a development consent having regard to the provisions of an existing or proposed local environmental plan.

The power does not currently apply to Court granted development consents, or consents granted by the Planning Minister. This exclusion will be retained.

The existing (limited) compensation provision would be retained. That is, if a development consent is revoked or modified under this power, a person aggrieved by the revocation or modification is entitled to recover from:

  • the NSW Government — if the Planning Secretary is responsible for the revocation or modification; or
  • the local council — if the council is responsible for the revocation or modification,

compensation for expenditure incurred pursuant to the development consent that is rendered abortive by the revocation or modification of that consent.

Significantly, there is no compensation for any loss in land value as such. A landowner who had obtained a development consent, but had not yet made any expenditure in reliance on that consent, may find their land value significantly reduced by the revocation of the development consent, but have no compensation rights.

Similarly, a condition in a development consent condition could be unilaterally modified by a local council (after the local council decided that the original condition was inappropriate, having regard to the existing local environmental plan). The revised condition may be more costly or burdensome. However, if the expenditure made by the developer is not rendered abortive by the modification, the developer would not be compensated for the extra costs or lost income arising from the modified condition.

If a development consent is revoked, or made less viable by a change in a condition, the position of a secured financer who had advanced funds (based on a land valuation that was dependent on the development consent) would be at risk. (To receive compensation, it would be necessary for the financer to show that the advancing of funds was expenditure incurred pursuant to the consent and that expenditure was rendered abortive by the revocation or modification of that consent.  Such an argument would likely be subject to extensive legal debate.)

This change does represent a significant weakening in the certainty that is offered by a development consent (when it is granted by someone other than the Land and Environment Court or the Planning Minister).

Consideration of non-significant impacts in development assessment

The bill proposes some renovation of ‘section 4.15(1)’ of the EP&A Act.

This provision is central to the assessment of development applications, as it sets out a wide range of matters that must be considered, where relevant.

Among other things, the provision requires that a consent authority must consider the ‘likely impacts of …[the] development, including environmental impacts on both the natural and built environments, and social and economic impacts in the locality.’

The bill proposes that this provision be amended to only require consideration of the significant likely impacts of the development.

The Planning Minister, Mr Scully, says that ‘currently, too much time and effort are spent on minor or irrelevant matters that have little impact on the final decision’.

The Government’s desire to make this change may be motivated by the recent decision of the Court of Appeal in Denman Aberdeen Muswellbrook Scone Healthy Environment Group Inc v Mach Energy Australia Pty Ltd [2025] NSWCA 163.

In that matter the Court of Appeal found that the Independent Planning Commission breached the law, by not considering the impact of carbon emissions in the locality that would be generated by the burning of coal mined from Mount Pleasant Coal Mine. The Commission had considered those carbon emissions, but only in terms of their global impact.

This change to section 4.15(1) would probably have meant that the Independent Planning Commission would not have broken the law, because the local impacts of the carbon emissions generated from the burning of the mined coal would not be significant.

However, this change has the potential to also lighten the assessment load for urban development when a consent authority is asked to consider minor impacts that are not specifically called-up for consideration under an environmental planning instrument.

For example, minor changes in traffic generation and traffic patterns might not need to be considered under this revised provision.

Having said all this, at the same time, the bill proposes to create an additional power for a development consent to be granted subject to a condition that arises from a likely impact of the development the subject of the  consent. This new power is not limited to only ‘significant’ likely impacts. This provision allows a consent authority to consider non-significant likely impacts, but manage those impacts by way of condition.

Removing the need to assess development that is to be separately approved

The bill also proposes to address a long-standing issue in development assessment.

It is commonplace for development applications to seek development consent for the development of a site, but not seek development consent for off-site works, such as access works, road reserve works and stormwater/drainage/sewer/water connection works.

However, the courts have held that a clear indication that no development approval is sought for the off-site works does not remove the need for development application documents to depict the works that would ultimately need to be carried out (for which development consent is not sought).

Under the current case law, a consent authority must take into consideration the likely off-site impacts caused by other development not the subject of a development application, but that has a ‘real and sufficient link’ with the proposed development (Hoxton Park Residents Action Group Inc v Liverpool City Council [2011] NSWCA 349).

The bill addresses this issue by saying that the significant likely impacts of other development — for which consent is not sought in the development application — are not of relevance to the development the subject of the development application.

This means that, if the bill becomes law, there will be no need for an assessment of works that are not proposed for approval under the development consent sought, but whose approval will be dealt with by some later separate process.

Clause 4.6 to only apply to requirements that are labelled as ‘development standards’

The bill makes a major change to the definition of ‘development standards’.

The bill provides for the deletion of the current definition of a ‘development standard’, such that a requirement by a local environmental plan or a state environmental planning policy will only be regarded as a ‘development standard’ if it is identified as such a standard in the relevant plan or policy.

This is very significant, as it will affect how ‘clause 4.6’ works.

A ‘clause 4.6 request’ is a request to carry out a development (proposed in a development application) in a way that contravenes a development standard set out in a local environmental plan or a state environmental planning policy.

The legal mechanism is set out in clause 4.6 of standard-instrument compliant local environmental plans. Hence its name.

Development consent must not be granted to development that contravenes a development standard unless the consent authority is satisfied the applicant has demonstrated that:

  • compliance with the development standard is unreasonable or unnecessary in the circumstances; and
  • there are sufficient environmental planning grounds to justify the contravention of the development standard.

Clause 4.6 serves a critical role in the planning system.  It is a vehicle for overcoming rules that, in a general sense, may work well, but have a limited or poor application to a particular site.

Clause 4.6 can only be used to permit the contravention of a ‘development standard’. It cannot be used to contravene a prohibition.

There has been decades of legal debate in the courts about what constitutes a development standard and what constitutes a prohibition.

In recent years, the pattern of court decisions has taken a fairly generous approach as to what is a development standard.  Generally speaking (outside the outright prohibitions in a ‘land use table’), almost all provisions in local environmental plans and state and environmental policies would be regarded as ‘development standards’ under the current law.

This includes non-numeric requirements that may not typically be thought of as ‘development standards’ by local council officers.  For example, requirements that particular services or facilities be made available for a development or requirements for a particular design outcome for a development are currently defined as ‘development standards’.

At present, the ‘Standard Instrument’ allows, on a case-by-case basis, certain development standards to be expressly excluded from clause 4.6.

However, the bill reverses this arrangement. The bill proposes two new definitions of ‘development standards’. One for immediate introduction and one for later introduction.

Under the definition that is to be introduced later, any requirement in a local environmental plan or state environmental planning policy that is not expressly identified as a ‘development standard’ will not be capable of being contravened under clause 4.6.

This reversal of the onus will make it very easy — as local environmental plans and state environmental planning policies are revised — for requirements to be excluded from the safety net of clause 4.6.

We think that non-numeric development standards which are generally currently covered by clause 4.6 may readily fall-out of this regime (under the new long-term definition of ‘development standards’ proposed in the bill). Examples include standards relating to matters such as:

  • services provision;
  • facilities provision;
  • design outcomes;
  • pollution emissions;
  • drainage;
  • road patterns;
  • servicing of vehicles;
  • character; and
  • external appearance.

Going forward, once the new definition of ‘development standards’ is fully implemented —as new requirements are inserted into local environmental plans and state environmental planning policies — it will be very easy for local councils or the Planning Department to (by accident or design) not label them as ‘development standards’.  If this happens, clause 4.6 requests will not be able to be upheld in relation to those provisions.

Non-discretionary development standards

The EP&A Act provides for ‘non-discretionary development standards’.

This name is misleading as the purpose of such development standards is to set out standards that — if complied with — prevent the consent authority from requiring more onerous standards for those matters.

Non-compliance with these particular development standards does not prevent development consent being granted. In short, these development standards limit the discretion of the consent authority, but do not limit the freedom of the developer.

Non-discretionary development standards are used to facilitate development such as residential flat buildings, co-living housing, affordable housing and seniors housing.

At present, if a proposed development does not comply with a non-discretionary development standard (even to a minor extent), the development is evaluated against the controls that would otherwise apply. For example, more onerous standards in a local environmental plan or a development control plan would be the relevant benchmark.

The bill addresses this by proposing that where a non-discretionary development standard is not satisfied, it will be a relevant consideration. A development consent could still be granted if the non-discretionary development standard is not met (and a clause 4.6 request would not be required).  However, in carrying out the development assessment:

  • a corresponding provision of a relevant environmental planning instrument that is more onerous than a non-discretionary development standard must be disregarded in the determination of the development application; and
  • a provision in a development control plan that corresponds to a non-discretionary development standard must be disregarded in the determination of the development application (unless the non-discretionary development standard applies, adopts or incorporates the provision in the development control plan).

In most circumstances, this change is likely to benefit development applicants.

Expanded power to order the completion of a development

At present, local councils and the Planning Secretary can issue a development control order that requires a development to be completed if:

  • the works have commenced; and
  • the works were not completed before the development consent would (but for the commencement of the works) have lapsed.

Such an order is known as a ‘complete works’ order.

This existing regime typically allows a developer five years from the date of the operation of a development consent before the developer is at risk of a ‘complete works’ order.  This is because the standard period for the lapsing of a development consent is five years. (If a development consent is subject to a reduced lapsing period, a complete works order could be issued sooner.)

The bill proposes a significant change to the status-quo.

The bill proposes that a local council or the Planning Secretary would be able to issue a ‘complete works’ order at any time after the works have been commenced.

It would be a criminal offence not to comply with such an order.

A person who received such an order would have a right to appeal to the Land and Environment Court within 28 days of receiving it and could, once the matter is appealed, apply for a ‘stay’ (suspension) of the order.

This change may make life more difficult for developers, particularly for staged developments or when they are experiencing financial difficulties.

Complying development certificates

Complying development certificates are an existing alternative to a conventional development consent.

A complying development certificate can be issued by a registered certifier (in lieu of a development consent granted by a local council).

Typically complying development certificates are only available for small-scale or low impact development. For example, they can be used for single dwellings, dual occupancies, terrace housing and small two-storey residential flat buildings, but not for erection of new (three storey or more) residential flat buildings.

A current flaw of the complying development certificate regime is that all of the relevant standards must be satisfied for a complying development certificate to be issued. If even one standard is not satisfied — no matter how good the reason — a full development application has to be lodged with the local council.

The bill proposes to address this by allowing an applicant to apply to their local council to obtain a ‘variation certificate’. Such a certificate would authorise the varying of a development standard. However, only development standards that are identified as being able to be varied in an environmental planning instrument (such as state environmental planning policy) can be the subject of variation certificate. No information has been released at this time as to how wide-ranging the ability to vary standards would actually be.

An environmental planning instrument may also set outer limits on the extent of any variation.

When an application for a variation certificate is made, a local council would be precluded from undertaking a general merit assessment of the proposed development. The council could only consider matters relating to the development standard that is sought to be varied.

If the local council is only being asked to consider the application for the variation certificate (with a registered certifier separately engaged to issue the complying development certificate), the variation certificate would be deemed to be approved if the variation certificate application has not been determined within 10 days.

There is no appeal right to the Land and Environment Court from any decision by a local council to refuse an application for a variation certificate. This means that there will be no incentive for a local council to actually approve variation certificate applications — or give such applications any serious consideration. We expect that the rate of refusal of such certificates will be very high. Given the ‘deemed approval’ arrangement, it can be expected that refusals will be routinely issued within 10 days.

It is unclear why the Government thinks that, in the absence of an appeal right, this would be an effective measure.

The bill also proposes to improve the process of modifying a development the subject of a complying development certificate.  At present, when such a modification is needed, the process for the issue of a new complying development certificate need to be repeated for the whole development. The bill would allow the registered certifier to issue a new certificate and, in doing so, only having to deal with the part of the development that is proposed to be modified.

Community participation plans

A community participation plan is the document that sets out when applications need to be notified, and the extent of the notification that is required.

Under the bill, all existing local council ‘community participation plans’ will be set aside and replaced with a single statewide community participation plan published by the Planning Department. This plan has not yet been prepared.

The Planning Minister, Mr Scully, says: ‘This reform is about consistency.  It is about clarity.  The new statewide community participation plan will be prepared by the Planning Secretary. This will allow the Planning Secretary to provide appropriate exhibition time frames for different planning matters, based on their impacts.’

‘Consultation periods can vary from one week to four weeks.  In some cases, members of the public are being asked to comment on matters so minor they barely register as development at all, such as decks, earthworks and retaining walls.  This is not sound planning, and it is often used to prevent and preclude rather than create and construct.’

‘This is a commonsense reform that brings consistency, improves efficiency, protects and promotes community participation for the issues that matter most, so that it is valued and valuable, not criticised for using small matters to hold up proposals that have substantive benefit,’ Mr Scully said.

It can be expected that, in some local government areas, there will be an increase in notification requirements.  In other areas the burden of notification requirements will be reduced.

However, in areas where development is already bitterly controversial, the community participation plans already generally err on the side of the more extensive public notification requirements.  Accordingly, in those areas, the requirements are likely to be similar or reduced.

Planning secretary to set information requirements for DAs

The bill will allow the Secretary of the Planning Department to publish a notice on the NSW planning portal that specifies the form and content of documents that are required to be submitted with a development application.

The Planning Minister, Mr Scully, says that ‘this means that consent authorities, including councils, will be required to request consistent and wholly relevant information.

‘It will be clear from the outset what information applicants need to submit, reducing delays and confusion and making sure applications are high quality and assessment ready,’ Mr Scully said.

Housing Delivery Authority

At present the ‘Housing Delivery Authority’ merely has the status of a panel established by the Minister under the EP&A Act.

The bill amends the EP&A Act, so that the Authority exists under the Act itself, rather than by a mere ministerial order. There is no great practical significance to this change.

The Planning Minister, Mr Scully, says that the bill ‘will embed the [Housing Delivery Authority] into the Act, making it a permanent, but still optional feature of the NSW planning system, to give confidence to proponents of large projects that these projects will be assessed within a State significant pathway, offering clear time frames and greater certainty’.

Other matters

There are a range of other changes. These include:

  • Bush fire safety provisions are being removed from the EP&A Act. Media reports indicate that the Government’s intention is that these legislated provisions will be replaced by new provisions in a state environmental planning policy or local environmental plans.
  • There is currently a requirement for consultation with the Secretary of the Department of Climate Change, Energy, the Environment and Water when state environmental planning policies and local environmental plans are amended and the planning authority considers critical habitat or threatened species, etc might be adversely affected by the proposed instrument. The bill proposes the deletion of this consultation requirement.   (This provision is, in part, the basis for the legal challenge by Ku-ring-gai Council against the transport orientated development SEPP provisions.)  A gateway determination may still require consultation with the Environment Department.
  • Some procedural improvements have been proposed to the ‘Division 8.2A’ review process, (which can be used by development applicants following an adverse decision). The Government has characterised this as an opportunity for ‘mediation’.  However, the legislation does not include any mediation process.  At present, the only assurance of a mediation process is via a Court appeal.  The bill does not change this.

The bottom line

The bill contains some measures that should be generally welcomed by property developers and their consultants, namely:

  • the new statutory objectives;
  • the creation of the Development Coordination Authority;
  • the ‘targeted development assessment’ pathway;
  • reforms to the conditions of development consent;
  • reforms to the modification of development consents;
  • changes the way that consideration is given to non-significant impacts in development assessment;
  • removing the need, in assessing development applications, to assess development that is to be separately approved;
  • the changes to non-discretionary development standards;
  • the changes to complying development certificates; and
  • the adoption of a single statewide community participation plan.

However, as is so often the case with any effort to ‘reform’ land use planning, there are some serious stings in the tail.  Some of the changes that should cause property developers concern include:

  • the abolition of district and regional planning panels;
  • the expansion in the power to revoke or unilaterally modify development consents;
  • the proposal to limit the scope of ‘clause 4.6’ to requirements that are expressly labelled as ‘development standards’; and
  • the expanded power to order the completion of a development.

There remains potential for the parliament to change (or even block) the bill before it becomes law.

This means the reforms may be improved, or may made worse, before they are finalised.

Additionally, it is not yet clear when the reforms will commence.

The reforms might be commenced on a staggered basis.

Some reforms could be commenced almost immediately (e.g. before the end of the year). Other reforms would require some detailed work in preparing regulations and/or new state environmental planning policies. Time may need to be allowed for local councils and the state government to amend business processes and update information technology systems. Those aspects of the reforms may not commence for some time.