What’s Changing in the Massive Shake up to the NSW Planning System

Government says single gateway will end duplication and delays.

A house under construction stands in front of newly built homes at a housing development located in the south-west Sydney suburb of Menangle Park in Australia on Feb. 20, 2025. David Gray/AFP via Getty Images

New South Wales (NSW) is bracing for its biggest planning overhaul in nearly 50 years.

The Minns Labor Government has tabled legislation it claims will slash red tape, fast-track housing approvals, and deliver more homes in the middle of a worsening affordability crisis.

The Planning System Reforms Bill 2025, introduced to Parliament on Sept. 17, rewrites the Environmental Planning and Assessment Act (EP&A Act), the framework that has guided development since 1979.

It has long been argued that the Act is bloated and slow, trapping projects in duplication and delays.

According to the latest Demographia International Housing Affordability report, Sydney is the second least affordable city in the world. This is pushing twice as many young people to leave NSW compared to those arriving.

Premier Chris Minns said the outdated system has become “a bottleneck in the state’s ability to build more homes—hurting supply, increasing costs, and reducing community confidence.”

Faster Approvals, Simpler Pathways

At the heart of the Bill is a push to accelerate approvals.

A new Development Coordination Authority will serve as a single front door for planning advice across government agencies, while the Housing Delivery Authority will be enshrined in law to lock in its role on major housing projects.

Minor variations on complying development must be decided by councils within 10 days—or be automatically approved. A new Targeted Assessment Pathway will also sit between full assessments and complying development, applying in areas where consultation has already occurred.

Planning Minister Paul Scully said the changes will stop the state from “sweating the small stuff” and ensure assessments match the scale and risk of projects.

Industry groups were quick to cheer, with Stuart Ayres, CEO of the Urban Development Industry Association, saying the reforms will see houses built faster.

The Committee for Sydney called the reforms “the biggest the planning system has seen in decades.”

Certainty For Builders

Developers often complain of shifting requirements after approvals are granted, blowing out costs and timelines.

The Bill pledges to standardise approval conditions and streamline application requirements, promising clarity for builders and communities alike.

For the first time, the Act’s objectives will explicitly include housing delivery, climate resilience, and proportionality in planning decisions. A single statewide Community Participation Plan will replace the patchwork of local consultation rules.

Tom Forrest, CEO of Urban Taskforce Australia, called the move “a seismic shift” in how NSW treats housing supply.

Cutting Panels, Oversight

One of the most controversial elements is the removal of the regional planning panels and the “regionally significant development” pathway.

Both have been blamed for duplication and delays, but were considered to be providing critical independent oversight.

Treasurer Daniel Mookhey defended the move, saying approvals have been choked by bureaucracy.

“There has been too much tying up approvals and construction of new homes,” he said.

The Planning Institute of Australia cautiously welcomed the reforms, supporting a “risk-based approach” that frees resources for complex projects while moving simple ones through streamlined channels.

What It Means in Numbers

The Minns government points to numbers to justify the changes.

Since March 2023, more than 86,700 homes have been declared “state significant” under the Housing Delivery Authority.

A further 30,000 homes are planned on surplus government land, including 8,400 social housing units—the largest single investment in public housing in state history.

In total, 19 projects worth $5 billion have been accelerated through the government’s Development Facilitation Program, enough to power 570,000 homes and meet evening peak demand for 1.3 million households.

Minns insists the reforms will ensure projects like these no longer stall at the approval stage.

“This Bill is about clearing the path for the right development in the right places, with the right outcomes for the community,” he said.

Bipartisan Backing, Fierce Green Dissent

The government says the Bill has been shaped with Opposition input, and Opposition Leader Mark Speakman has signalled support.

“We are pro-housing, we are pro-reform,” he told ABC, adding that a “single voice” from government would be a “game changer.”

Shadow Planning Minister Scott Farlow, however, cautioned that “the devil is in the detail,” though he welcomed efforts to cut duplication.

Greens MP and planning spokesperson Sue Higginson called the reforms “a gift to developers.” She said filtering out independent expert advice through a new authority was “never a good plan.”

Higginson also accused the government of ignoring this week’s Climate Risk Report, which warned one million homes could be uninsurable by 2050.

“Fast-tracking houses is no solution if people are still being moved onto floodplains,” she said.