NSW Planning system reforms
What you need to know
- In December 2025, NSW passed major planning system reform in the Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025.
- The key motivator for the proposed reform is the Government's commitment to deliver 377,000 new homes by July 2029.
- The amendments: change the matters which a consent authority must consider when approving development applications to focus on "significant" environmental impacts; create a streamlined approval pathway for Targeted Assessment Developments; establish the Development Coordination Authority, which is responsible for coordinating multiple Government agencies during the DA process, including exercising concurrence functions; and make a series of other changes to the detail of the planning assessment process in NSW.
What you need to do
- Monitor the development and release of environmental planning instruments over the next nine months, as these will provide more detail around the implementation of the reforms.
- Take into account the change in matters that consent authorities consider in assessing DAs when preparing DA applications and accompanying documents.
- Review the planning approval pathway for proposed developments, as these may have changed as a result of the planning reforms.
The NSW Parliament enacted significant reforms to the Environmental Planning and Assessment Act 1979 (NSW) (EP&A Act) in December 2025. The purpose of the reforms is to modernise the planning legislation for NSW's housing, jobs, infrastructure and energy delivery.
The reforms are set out in the Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025 (Amending Act) and are being progressively implemented as supporting planning instruments and regulations are made. The key amendments commenced on 15 December 2025.
The main objective of the proposed reform is the provision of housing. Under the National Housing Accord, NSW is committed to delivering 377,000 new homes by July 2029. The Planning Minister has stated that NSW needs more "well-located homes around transport infrastructure, we need more social and affordable housing, we need to make sure these new homes are well designed and well built, and we need to approve them and build them as quickly as possible."
Further, the Planning Minister has stated that the reforms will re-establish a planning system that will assess land use to produce outcomes rather than prioritising process. The Minister has stated that this will reform a planning system that "spends a disproportionate amount of time and resources assessing low-risk proposals and debating relatively minor issues that are often immaterial to the outcome."
The Amending Act is part of a broader package of planning and zoning reforms. Other reforms include the amendment of planning instruments which establish Transport Orientated Development, rezone land to facilitate broader housing types and opportunities and assist with the roll-out of renewable energy infrastructure.
The key attributes of the Amending Act are summarised below.
Development coordination authority
A signature aspect of the planning reforms is the establishment of a Development Coordination Authority (DCA), which is modelled in part on the Queensland Coordinator-General.
The purpose of the DCA is to manage the interaction between multiple NSW Government agencies during the development application (DA) process. The DCA will enable centralised decisions on concurrence, referrals and integrated development to address inefficiencies caused by fragmented referral processes across multiple agencies. The DCA will provide a single point of contact and will produce a single, cohesive state response to DAs, including in relation to whether other approvals required for a project to proceed will be granted and the general terms of any such approval.
The Department of Planning, Housing and Infrastructure (DPHI) has advised that the reforms will not weaken environmental protections or standards, as the DCA will continue to apply the same legislation, policies and standards set by agencies and will collaborate with agencies where specialised expertise is required (DPHI publication, Reforming the Planning System, December 2025, p 11).
For integrated development and development requiring concurrence, the consent authority will refer the application to the DCA. The DCA will decide whether an approval will be granted, and if so, will inform the consent authority of the general terms of any approval. The other agencies will continue to be responsible for issuing the approval and enforcing compliance.
The scope of the DCA's role in the planning system may grow and evolve over time, as the Planning Minister, Planning Ministerial Corporation and Planning Secretary will be able to delegate functions to the DCA.
Housing delivery authority
The planning reforms provide legislative backing to the Housing Delivery Authority (HDA), which was established by Ministerial Order on 17 December 2024. The HDA consists of the Planning Secretary and at least two other members appointed by the Minister.
The purpose of the HDA is to facilitate the timely development of housing in NSW. The HDA provides advice to the Minister about housing supply, the declaration of specific residential development on specific land as State significant development (SSD), and the rezoning of land for residential purposes. The HDA will also facilitate a new streamlined assessment and concurrent rezoning process pathway.
The planning reforms also provide amendments to environmental planning instruments for particular developments being considered as part of a single merit-based evaluation. The Planning Minister advised Parliament in the second reading speech for the Bill that the Minister has declared 240 proposals as SSDs under the new pathway, with the potential to deliver more than 86,700 new homes.
Section 3.22 of the EP&A Act now enables expedited amendments to environmental planning instruments to deal with matters the HDA considers reasonably necessary to enable carrying out an SSD (i.e. to concurrently rezone land for SSD).
Targeted assessment development
The planning reforms introduce a new planning pathway called Targeted Assessment Development (TAD) for certain kinds of development. TAD is intended to bridge the gap between full development assessment and complying development.
The kinds of development that will be declared as a TAD will be defined in a State Environmental Planning Policy (SEPP) which is expected to be placed on public exhibition in Q3-Q4 2026. DPHI has indicated that TAD may apply to some low to mid-rise housing where validated design standards are already in place, community batteries and upgrades to community sporting facilities but not complex developments such as an SSD or designated development. DPHI has stated that there will be clear eligibility criteria, procedural steps and safeguards in place to ensure that the process is fair, consistent and environmentally responsible.
The usual process for considering a DA is significantly altered for development declared to be a TAD. A consent authority for a TAD will be able to determine a DA without assessment of environmental impacts, public exhibition or agency referrals. The NSW Government has stated that this is expected to reduce assessment timeframes by up to 50% and help accelerate the delivery of housing supply across NSW.
In particular, when evaluating a DA or modification application for a TAD, a consent authority will need only take into consideration the matters referred to in section 4.15(1)(a) and (d) of the EP&A Act. This includes submissions (noting that there may be none if no public exhibition is required), provisions of an environmental planning instrument (EPI), draft EPI, Development Control Plan (DCP), planning agreements and relevant matters described in Part 4, Division 1 of the EP&A Regulations. The Amending Act provides that a consent authority for TAD must not take 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
- the public interest.
As a result, the assessment of a proposed TAD will likely be focused on the relevant content of state and local planning codes (EPIs and DCPs), which are created through a process of strategic planning. By front-loading development assessment into codes, efficiency can be gained in the assessment process and a new proportionate, risk-based approach to planning implemented. This will result in an assessment process that will take about 50 days to obtain a determination, rather than about 100 days for a non-TAD application.
Further, the requirements of an EPI will only be a development standard if it is expressly stated to be (which is addressed below). As a consequence, there will be fewer mandatory requirements for development – particularly before EPIs are updated – and consent authorities will have a greater ability to approve proposed development.
The Planning Minister has justified the reduced evaluation criteria and reduced public exhibition by explaining that it will provide a fast-tracked, streamlined process by turning off unnecessary steps if the issues have already been addressed through up-front strategic planning, development controls or codes.
Objects of EP&A Act
The planning reforms amend the objects of the EP&A Act to:
- promote the supply of affordable housing;
- promote productivity through the development and management of the State and its resources;
- promote resilience to climate change and natural disasters through adaptation, mitigation, preparedness and prevention; and
- promote a proportionate and risk-based approach to environmental planning and assessment.
The objects of the EP&A Act are important considerations in statutory interpretation and the manner in which decisions are made under the EP&A Act. The amendments are likely to assist in streamlining the approval process and also provide a more robust foundation for defending legal challenges to DA approvals and Part 5 projects.
Matters for consideration in determining DAs
The planning reforms adjust the matters that a consent authority must take into consideration when determining whether to approve a DA.
First, section 4.15(1)(b) has been amended to require the consent authority to only take into account the significant likely impacts of the proposed development. This includes environmental impacts on natural and built environments as well as the social and economic impacts in the locality. The inclusion of the word "significant" is consistent with the amendments to the objectives of the EP&A Act, so that minor impacts are not given disproportionate attention in assessment.
Second, amendments to section 4.15 of the EP&A Act include new provisions which enable EP&A Regulations to declare factors that are and are not relevant considerations for a consent authority under subsection 1(b), (c) or (e) when evaluating a DA. If the EP&A Regulations declare that a factor is not of relevance, the consent authority must not take it into consideration.
In this respect, section 65A of the EP&A Regulations now declares that, for the purposes of consideration of a matter referred to in section 4.15(1)(b), "the significant likely impacts of other development for which consent is not sought in the development application [are] factors that are not of relevance to the development the subject of the development application". This is where "other development" means development that is likely to be, or will be, required to be carried out as a result of the development that is the subject of the development application" but is not included in the current DA.
This means that a consent authority will not be able to take into consideration the impacts of off-site or enabling works, which can be assessed and approved in a separate DA, or via another planning pathway or approval under other legislation. This was proposed in response to cases such as Hoxton Park Residents Action Group Inc v Liverpool City Council [2011] NSWCA 349, where the NSW Court of Appeal found that the likely impacts of a development may include those that flow from an activity not included in the DA, such as offsite road works.
DPHI has clarified that this provision does not prevent a consent authority from imposing a deferred commencement or other condition requiring approvals to be obtained, or enabling works to be completed before the consent is operational or construction work can commence. The provision also does not prevent a consent authority from considering the impacts of other development if relevant under other heads of evaluation in section 4.15, apart from subsection (1)(b), such as in the provisions of any environmental planning instrument or as an aspect of the public interest.
Part 5.1 Assessments by determining authorities
The planning reforms also amend the duty of a determining authority to consider the environmental impact of a Part 5 activity. This is consistent with the amended objects of the EP&A Act to adopt a proportionate risk-based approach.
A determining authority when carrying out a Part 5.1 activity, will no longer need to take into account to the fullest extent possible all matters affecting or likely to affect the environment by reason of that activity. Instead, section 5.5(2) will provide that "a determining authority may take into account the matters referred to in the subsection in a manner that is proportionate to the nature and risk of the activity."
Proportionality in assessment is a new principle in this context, where the level of scrutiny aligns with the level of risk. The matrix below, copied from DPHI's practice note, illustrates this approach.
| Likelihood | Impact | |||||
| Very Low | Low | Moderate | High | Very High | ||
| Very High | Moderate | High | High | Very high | Very high | |
| High | Low | Moderate | High | High | Very high | |
| Moderate | Low | Low | Moderate | High | High | |
| Low | Very low | Low | Low | Moderate | High | |
| Very Low | Very low | Very low | Low | Low | Moderate | |
This amendment will dispose of decades of case law dealing with what it means to take matters into account to the fullest extent possible, and will introduce some uncertainty into what was a settled understanding of what is required of determining authorities.
Modification of development consents
The planning reforms expand the scope of modifications that may be granted under section 4.55(1) of the EP&A Act to include development that the consent authority is satisfied has no environmental impact.
A new section 4.55A will require a consent authority to approve a modification application under section 4.55(1) if it is not determined within 14 days, and any modification to conditions must only relate to the modification application and not defeat the purpose of the application.
Modifications under section 4.55(1A) will be in respect of development that has minimal (but not no) environmental impact.
For modifications other than those under section 4.55(1), the reforms provide that there is no requirement to consult with the Minister, public authority or other approval body in respect of a modification to a condition imposed as a requirement of a concurrence or in accordance with general terms of approval.
Development standards
The definition of development standards has been amended to make it easier to identify which requirements of an EPI can be the subject of a clause 4.6 variation. This is a welcome amendment to the EP&A Act as it will minimise uncertainty in identifying a development standard under the legislation.
Two staged definitions appear in the Amending Act. The first definition is similar to the current definition but adds the words "provisions of an [EPI] or a regulation that are identified as development standards by the [EPI] or regulation, including by the heading or the notes to the provision." The second definition of a development standard is, "a provision of an [EPI] or a regulation that is identified as a development standard by the [EPI] or regulation, including by the heading or notes to the provision."
It is apparent that EPIs and regulations will be amended to expressly identify each development standard. Until then, identification of development standards that are not expressly identified as such will still require a judgment call.
The approach to consideration of a non-discretionary development standard as part of the DA process will also be clarified. These are already expressly identified in an EPI or regulation. If a proposed development, not being complying development, meets a non-discretionary development standard, the consent authority is not able to impose a condition of consent that is more onerous than that standard. If proposed development does not meet the standard, then the development can be the subject of a clause 4.6 variation.
The Amending Act proposes to clarify that in the circumstances where a proposed development does not meet a non-discretionary development standard, the consent authority must take into consideration the standard or any less onerous corresponding provision (and any more onerous corresponding provision must be disregarded) and may nevertheless approve the DA, providing consent authorities with more discretion to approve development.
The amendments further clarify that a clause 4.6 variation request is not needed when a non-discretionary development standard is not met.
Complying development
The planning reforms expand the complying development pathway by requiring complying development to be carried out in accordance with complying development standards.
At present, section 4.26(1)(b)(ii) of the EP&A Act requires complying development to be carried out in accordance with "any provisions of an environmental planning instrument, development control plan or the regulations that applied to the carrying out of the complying development on that land at the time the complying development certificate was issued."
A complying development standard is a development standard as varied by a variation certificate or a provision of a DCP identified as a standard or requirement for complying development.
It is not known whether all DCPs will need to be amended to specifically identify each standard or requirement for complying development in order for a development standard to be a complying development standard.
A variation certificate may only be issued in respect of a development standard if an EPI specifies that the development standard may be varied by a variation certificate. A variation certificate is to be issued by an "appropriate person", being the council, and not the certifier. A variation certificate may be subject to conditions. If an application for a variation certificate is not determined within 10 days (or 20 days if the council is also assessing the complying development certificate), it will be deemed to be approved.
These amendments should result in more development being complying development. However, if a variation certificate is required it is likely to add some time and uncertainty to the approval process and may result in the imposition of additional conditions.
Planning panels
The planning reforms remove the Regionally Significant Development planning pathway and abolish the associated Sydney District and Regional Planning Panels. This will streamline the structure of planning panels.
DPHI estimates that the change will return about 350 DAs per year to local determination by councils and local planning panels. This should improve efficiency, reduce delays and result in decisions being made closer to the communities that they affect. This will not significantly increase the workload of council staff, as these DAs are already assessed by councils, just not determined by them.
Local planning panels are now able to be constituted for two or more areas, making them in effect a regional panel.
Until the relevant sections commence, some existing and new regionally significant DAs will be determined by Local Planning Panels where they exist.
Standard conditions and model provisions
The planning reforms enable development consents to be subject to standard conditions prescribed by the regulations and conditions specified by a SEPP.
A SEPP will specify model conditions which a consent authority must impose when granting or modifying a development consent. Other conditions cannot be inconsistent with the model conditions.
The Amending Act also proposes that consent authorities must consult with applicants in relation to proposed conditions of consent for development of a kind specified in the regulations.
The standard and model conditions will likely be released in Q3–2026.
Consultation
The Planning Secretary is required to prepare and publish a community participation plan about how and when planning authorities will undertake community participation when exercising relevant planning functions. This will likely be released in Q3–2026.
Planning authorities are currently required to publish their own community participation plans. DPHI estimates that there are over 100 different community participation plans leading to fragmented consultation practices and inconsistent timeframes.
Having one community participation plan will provide a single standard across the State. DPHI has advised that engagement will be tailored to the scale and impact of proposals, reducing unnecessary consultation for low-risk or strategically assessed projects.
Bushfire prone land
The planning reforms simplify the requirements for a consent authority when determining development consent for development on bushfire prone land.
Currently, development consent cannot be granted for the carrying out of most types of development on bushfire prone land unless the consent authority is satisfied that the development complies with Planning for Bush Fire Protection, a qualified consultant provides a certificate outlining that the development conforms to relevant specifications, or the Commissioner of the NSW Rural Fire Service is consulted.
Once the amendments commence, to grant a development consent for a development on bushfire prone land, the consent authority need only consider the relevant Bush Fire Protection Planning Guide (Planning for Bush Fire Protection or another document prescribed by the regulations).
DPHI has advised that the bushfire consultation requirements will be moved to a new SEPP, allowing for more frequent revisions based on contemporary science and best practice.
Zombie DAs
The planning reforms expand the power to deal with "zombie DAs". These are historic consents that were granted, often decades ago, and were legally commenced but have not been completed. They are often inconsistent with existing planning and environmental controls.
Currently, under section 4.57 of the EP&A Act, the Planning Secretary or a council can revoke or modify consent having regard to the provisions of proposed EPIs. This power will be expanded to enable the Planning Secretary or a council to revoke or modify a consent having regard to the provisions of an existing EPI.
The Minister or Planning Secretary will also be able to issue a complete works order for consents that are more than five years old, even if they are not the consent authority. DPHI has advised that this offers a targeted interim solution to address historical consents while a broader Parliamentary Inquiry is underway.
Appeals and reviews
The planning reforms amend the internal review process to provide practical and accessible alternatives to merit appeals.
Applicants will have six months to request a review of a DA decision. During this time, the merit appeal period to the Land and Environment Court will be paused, so that applicants do not lose their right to appeal during the review. There are no time limits on determination of the review.
Rather than have the review determined by a council officer, an applicant will be able to request that the review be determined by a local planning panel instead.
A decision of the DCA about an aspect of development that, under the conditions of a development consent, was required to be carried out to the satisfaction of the DCA will be subject to review by the DCA.
Changes also simplify the deemed refusal period so that it applies from the expiry of the assessment period until determination of the DA.
State significant development
The planning reforms clarify that the whole of Part 4 will apply to the determination of an SSD application (not just the matters for consideration in determining an SSD application under section 4.15). The provisions of division 4.7 will prevail except in relation to provisions relating to targeted assessment development.
Threatened species
The planning reforms provide that when making an EPI, the Planning Secretary (in the case of a SEPP) or the planning authority (in the case of a LEP) will not need to consult with the Chief Executive of the Office of Environment and Heritage if critical habitat or threatened species, populations or ecological communities, or their habitats, will or may be adversely affected by the proposed instrument.
This will remove a possible bottleneck in the making of an EPI, noting that impacts on threatened species are assessed in the planning approval process.
State significant infrastructure
The planning reforms allow a Minister to make an order specifying development as SSI without amending a SEPP.
This may mean that a search of the Gazette will be required to determine whether development is SSI, which is not ideal in an already complex and multi-layered planning system.
Non-legislative reforms
DPHI has advised that it is also progressing a suite of non-legislative reforms to simplify and improve the efficiency of the planning system, including:
- standardising and simplifying planning certificates and introducing clear notification protocols for legislative changes affecting planning certificates;
- reforming the Secretary's Environmental Assessment Requirements process for State significant projects to ensure that scoping exercises are rigorous so that the requirements target key environmental risks (likely in Q2–2026);
- amending SSD and SSI guidelines to reflect the reinvigorated scoping process, the principle of proportionality and other reforms; and
- consolidating circulars and guidance materials into concise, subject-specific practice notes and deleting obsolete materials from DPHI's website.
What's next?
The reform of the planning system will continue over the near future with the roll-out of the environmental planning instruments to support the Amending Act. It will be important to monitor the commencement of provisions of the Amending Act and be prepared for the changes that are in the pipeline.
Please contact a member of the Planning, Access and Environment team if you would like any further information about how the amendments to the EP&A Act may affect you.
