A New Approach to Strategic Planning: Discussion Paper
Words — Tract
Images — Bellingen River, Fernmount (Destination NSW)
Category — Insights, NSW Reforms Series
As NSW grows, the State Government recognises the need to create a clearer, more coordinated approach to land use planning that delivers homes in the right locations, creates more jobs, invests in infrastructure and protects our environment. A Discussion Paper has been prepared to outline how this will be enacted. In this article, our team analyses what the proposed changes involve.
Summary: The Three-Tiered Framework
The paper proposes moving away from the current system, which involves the Greater Cities Commission’s Metropolis of Three Cities Master Plan, District Plans, and various regional strategies, toward a simplified three-tiered hierarchy:
Tier 1
The State Land Use Plan – A new, high-level document that sets seven statewide priorities (Aboriginal outcomes, Housed, Prosperous, Connected, Resilient, Liveable, Coordinated). This ensures that whether you are in Parramatta or Wagga Wagga, the planning goals are consistent.
Tier 2
Regional Plans – Large-scale plans (like The Sydney Plan) that apply the state priorities to a specific region. The government is consolidating regions, reducing them to four major blocks: Greater Sydney, Illawarra-Shoalhaven, Lower Hunter & Central Coast, and a combined Regional NSW plan covering 84 local government areas.
Tier 3
Local Strategic Planning Statements (LSPS) – These are the “on-the-ground” documents managed by local councils and will remain as the key local strategic planning framework for the local government area. The goal is to make these directly nest within the Regional Plan, with the proposed removal of District Plans.
Key Proposed Changes
- Integrated Region Plan: A single region plan will aggregate areas and replace former regional plans. For example, areas in the Far West and North Coast would instead be guided by one region plan.
- Abolishing District Plans: The five previous District Plans for Sydney are being scrapped to reduce duplication.
- Agile Updates: Moving away from “set and forget” 20-year plans. The new system allows for modular updates every few years based on new data (like a new metro line opening) and to respond to demographic and other changes.
- Mandatory Contribution Schemes: A major shift requiring all Sydney councils to have an Affordable Housing Contribution Scheme (AHCS) in place by 2027.
Our Initial Thoughts
Cutting the Red Tape
The current system is a “layer cake” of plans. By removing District Plans, the government is reducing the distance between state policy and local building approvals through better alignment. By way of example – this should, in theory, speed up the rezoning process.
Data-Driven Planning
The focus on agile updates is a modern necessity. Previously, if a major infrastructure project (like the Metro West) was announced, it could take years for the official regional plan to reflect it. This new approach treats the plan as a living document which can be updated to reflect such changes sooner.
Standardized Priorities
Using the same seven priorities across the whole state provides much-needed policy certainty for investors and developers. This will avoid the need to navigate a range of different strategic goals when moving between regions.
Centralisation of Planning Authority
The consolidation of strategic planning functions within the Department of Planning, Housing and Infrastructure (DPHI), together with the discontinuation of the independent Greater Cities Commission, represents a significant structural shift. While this model may streamline governance, it also reduces the degree of institutional separation that previously existed between long‑term planning and ministerial decision‑making.
Council Resourcing
The paper places a strong emphasis on Greater Sydney councils preparing Affordable Housing Contribution Schemes by 2027. Many smaller or resource‑constrained councils may require additional support to develop these schemes effectively. Ensuring that the state’s toolkit is comprehensive and practical will be important to support consistent implementation and reduce the likelihood of procedural challenges.
Place-Based Planning Needs
The consolidation of five District Plans into a single Greater Sydney Plan represents a significant shift in how local priorities are expressed. While this approach may support metropolitan‑wide coherence, it also raises the possibility that the distinct needs of areas such as the Northern Beaches and Western Sydney may be less visible within a unified framework. This challenge may be even more pronounced across the 84 local government areas encompassed by the broader Region Plan.
The Discussion Paper is currently on public exhibition until 27 February 2026.
NSW Town Planning Leads
For more information about how the changes may affect you, and for assistance with making a submission, please contact our NSW Town Planning team.
Karmi Palafox
Principal Town Planner
Sydney / Gamaragal Country
Corne van Rooyen
Associate Town Planner
Sydney / Gamaragal Country
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