Significant changes to the NSW planning system announced

This article was co-authored with Isabelle Afaras.

Yesterday (17 September), the NSW Government introduced the Environmental Planning and Assessment (Planning System Reforms) Bill 2025 (Bill) in State Parliament. The Bill can be found here.

The Bill proposes significant reforms to the Environmental Planning and Assessment Act 1979 (EP&A Act) and Environmental Planning and Assessment Regulation 2021, as well as consequential amendments to other key pieces of legislation, including the Biodiversity Conservation Act 2016 (NSW) and the Protection of the Environment Operations Act 1997 (NSW).

In a media release, the Minister for Planning and Public Spaces Paul Scully described the Bill as providing a planning system "that supports the delivery of more homes, jobs and investment in an economically, socially and environmentally sustainable way". In this update we will provide a broad overview of some of the key reforms proposed in the Bill.

If passed, the reforms will be the most substantial reforms to the existing planning system in a decade. We will continue to monitor the Bill's progress and provide further updates.

• Objects of the EP& Act updated and revised
• Authorities, new and here to stay
• Complying development
• Targeted assessment development
• Other key changes

Objects of the EP& Act updated and revised

The objects of the EP&A Act have been updated and reworded with the new primary object of the Act being to promote land uses that improve the social and economic welfare of communities, and the secondary object focussed on promoting the supply and delivery of housing including affordable housing.

This represents a significant shift in the focus of the Act and makes clear the NSW Government's agenda with the new reforms.

Authorities, new and here to stay

Development Coordination Authority

The Bill proposes to establish the Development Coordination Authority (DCA) under a new Division 2.3B to the EP&A Act, to centralise referrals that are required in relation to development applications for integrated development. The new DCA (which means the Planning Secretary) will operate as a central authority for determining whether general terms of approval (GTAs) will be given. This contrasts with the current system for integrated development where multiple agencies may be required to consider different aspects of a development application and determine whether or not GTAs will be given . The DCA , potentially with the use of staff or facilities of other public authorities, will therefore decide whether or not an approval body will grant the relevant approval.

Housing Delivery Authority

The Housing Delivery Authority was established in December 2024 by way of a ministerial order made under section 2.3 of the EP&A Act. The Housing Delivery Authority's responsibilities include assessing major housing proposals and providing recommendations to the Minister whether these should be determined as state significant development.

The Bill proposes to formalise the Housing Delivery Authority under a new Division 2.3A to the EP&A Act, securing a permanent role for the NSW Government in housing delivery throughout NSW.

Complying development

The Bill appears to bolster the use and availability of complying development as an alternative pathway to a development application, by allowing variations to complying development standards and enabling a deemed approval process for such variations.

An application to vary a complying development standard will be deemed to be approved within ten days if not determined within that timeframe.

Targeted assessment development

A new development application process is intended to be created with the introduction of Division 4.3A to the EP&A Act titled 'Targeted assessment development'. This new division will allow State environmental planning policies to declare certain development, or classes of development to be targeted assessment development. Such development is intended to bypass the full assessment process with provisions relating to targeted assessment development said to prevail over any other provisions under Part 4 of the EP&A Act.

This is said to bridge "the gap between a full development assessment and complying development, for types of development where strategic planning and community consultation has already taken place".

Other key changes

• Community Participation: the reforms introduce a single, state-wide 'Community Participation Plan' to simplify and streamline community consultations. It will apply to all planning authorities and functions and is set out in the objects of the Bill.
• Regional Planning Panels: the reforms introduce Regional planning panels, which will be NSW Government agencies. Their functions will include advising the Minister or the Planning Secretary as to planning or development matters relating to that part of the State.
• Appeal Pathways: updated pathways to encourage disputes to be resolved outside of the Land and Environment Court, by expanding the existing review process.

Please contact our Environment and Planning team if you would like further information about how these reforms update might impact your particular situation.