The NSW Government has proposed significant reforms to the Environmental Planning and Assessment Act 1979 (NSW) in the Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025 (NSW) on September 17. This bill aims to refine planning goals, reduce approval delays, and support faster housing delivery. In particular, the reforms target small and medium-scale projects under $1 million, which make up 90% of development applications.
Key proposed changes include:
- New assessment process: A ‘targeted assessment pathway’ will increase efficiency by avoiding duplication in assessments. This pathway will switch off issues that have already been covered by development codes or strategic planning measures.
- Streamlined modification pathways: Modifications that are minor or have no environmental impact must be approved quickly to reduce delays and any associated costs.
- New development authorities: The Housing Delivery Authority is now enshrined in legislation. A Development Coordination Authority (DCA) will be created to reduce delays by enhancing collaboration and consolidating decision-making between different State Government agencies.
- Standardised consent conditions: Standard conditions of consent will be prescribed to increase consistency, and consent authorities will be required to engage with applicants prior to finalising conditions.
- Proportionate assessment: Proposed amendments to Parts 4 and 5 of this Act will require consent authorities to focus only on ‘significant’ impacts of development rather than ‘likely’ impacts, and assess the environmental impacts of applications in a way that is proportionate to the nature and risk of the project.