The NSW Government has unveiled the Planning System Reforms Bill 2025, a sweeping attempt to simplify and modernise a system many say has become one of the state’s biggest barriers to housing supply.

For nearly half a century, the Environmental Planning and Assessment Act 1979 (EP&A Act) has been the backbone of development in New South Wales. Every new home, infrastructure project, or energy system has been assessed under its framework. But after decades of amendments, overlays, and piecemeal fixes, the Act is now widely considered outdated, overly complex, and no longer fit for purpose.

The new Bill is pitched as a once-in-a-generation reset, one designed to cut through the bottlenecks that slow housing approvals and inflate costs, while also ensuring communities still have a voice in shaping their neighbourhoods.

The housing crisis backdrop

The reforms come at a time when Sydney is ranked the second least affordable housing market in the world, with demand consistently outstripping supply. Young people are leaving the state at twice the rate they are arriving, and many families and downsizers are locked out of communities they want to call home.

Premier Chris Minns has been blunt: “The current system has become a bottleneck in the state’s ability to build more homes, hurting supply, increasing costs, and reducing community confidence.”

The Minns Government argues that without fundamental reform, housing targets will remain out of reach, construction costs will continue to rise, and community frustration will deepen.

Key changes in the Bill

Faster, simpler approvals

• Development Coordination Authority: A new ‘single front door’ to streamline advice and approvals across NSW Government agencies.
• Housing Delivery Authority enshrined in legislation, giving the government a permanent role in driving supply.
• Expanded Complying Development: Councils will have 10 days to approve small variations, or applications will be deemed approved.
• Targeted Assessment Pathway: A middle ground between full development assessments and complying development, reserved for proposals where strategic planning and consultation have already occurred.

More certainty for builders and communities

• Improved DA standards to ensure assessments are proportionate to project scale.
• Standardised conditions to give builders certainty once approvals are granted.
• Amendments to the EP&A Act to explicitly include housing delivery, climate resilience, and proportionality as objectives.
• A state-wide Community Participation Plan, ending inconsistencies in how consultation is run across councils.

Cutting duplication and red tape

• Removal of regional planning panels and the regionally significant development pathway, both considered duplicative.
• Updated appeal and review options to encourage resolution outside the Land and Environment Court.
• A long list of technical ‘fixes’ to address long-standing frustrations with the system.

Planning Minister Paul Scully framed the challenge plainly: “In NSW, 90 per cent of development applications are for less than $1 million, to put it simply, we are sweating the small stuff. We need a planning system that supports the delivery of more homes, jobs and investment in an economically, socially and environmentally sustainable way.”

The politics of planning

While planning reform often attracts fierce political debate, the Minns Government has emphasised that it has worked constructively with the NSW Opposition to shape the Bill. The government is seeking bipartisan support to ensure reforms survive electoral cycles and provide certainty for investors, councils, and communities.

Treasurer Daniel Mookhey added the economic dimension: “There has been too much red tape tying up approvals and construction of new homes. That has to change so we can hold onto and attract the people who are vital to powering our economy.”

A continuation of broader reforms

The Bill builds on reforms already rolled out since March 2023, including:

• Transport Oriented Development program to drive higher density around train and metro stations.
• Low and Mid-Rise Housing policy and an Infill Affordable Housing Bonus.
• Establishment of the Housing Delivery Authority, which has already declared over 86,700 homes as State Significant Developments.
• Commitment to deliver 30,000 new homes on surplus government land, including 8,400 social housing units in what is billed as the biggest social housing investment in NSW history.

Together, these initiatives represent the most ambitious reform agenda the state has ever seen in housing and planning.

Industry reaction

Early reaction from the building industry has been cautiously optimistic. Developers and builders have long called for greater consistency and faster decision-making, particularly for mid-sized projects that often get caught in drawn-out processes.

Industry groups have also welcomed the proposed state-wide Community Participation Plan, which they say could reduce the uncertainty and cost caused by varying local requirements.

However, some caution that the success of the reforms will depend on execution. The creation of new authorities, standardised conditions, and streamlined appeals all require resourcing, training, and cultural change within government agencies and local councils.

The community question

For communities, the reforms promise more consistent consultation and a stronger emphasis on climate resilience and liveability. But the expansion of complying development and deemed approvals may prove contentious, with critics likely to argue that community voices risk being sidelined in the name of speed.

The government maintains that proportionality is key. “The level of assessment required for simple developments is disproportionate to their impact on communities,” Minns said. “We need to stop sweating the small stuff.”

Why it matters for builders

For builders, the Bill could translate to:

• Reduced holding costs thanks to faster approvals.
• Greater certainty once approvals are granted.
• More predictable conditions, helping streamline project management.
• Clearer pathways for mid-sized developments that don’t neatly fit into current categories.

If implemented effectively, the reforms could ease one of the industry’s most persistent frustrations, the unpredictability and inefficiency of the approvals system.

The Good Builder take

We’ve consistently highlighted how planning delays add layers of cost and uncertainty to projects, ultimately flowing through to the homebuyer. A planning system that balances community consultation with efficiency is critical not just for builders and developers, but for every family struggling to find an affordable home.

The proposed reforms represent a significant step in that direction, but the real test will be delivery. Builders should be watching closely to see whether the new system genuinely clears the bottlenecks or simply creates new ones.

Author: TGB Editorial