The NSW Government has introduced sweeping reforms to streamline planning approvals and boost housing delivery through the Environmental Planning and Assessment Amendment (Planning System Reform) Bill 2025. It is considered to introduce the most significant changes to the Environmental Planning and Assessment Act 1979 in decades. 

It has passed both houses of NSW Parliament with some agreed amendments and is awaiting the Governor’s assent (approval). Once assent is granted, the bill will become law. 

Key highlights include: 

A new division in the EP&A Amendment Act 2025 No. 24 formally establishes the HDA, with powers to declare priority housing projects as State Significant Development (SSD), accelerating approvals. 

The new Development Coordination Authority is established under Division 2.3B of the Bill and is constituted by the Planning Secretary.

Importantly, this Development Coordination Authority will take over and centralise referral/concurrence functions of State Agencies.

The Development Coordination Authority will act as a “clearing house” for all State Agency inputs on Development Applications (DAs) and Planning Proposals, aiming to reduce duplication and improve coordination.

Sydney District and Regional Panels will be removed, with strengthened Local Planning Panels taking on a clearer role to reduce delays and improve transparency. 

The Bill provides a more definitive framework for:   

Under Part 2 Section 2.24, the Bill introduces a State-wide Community Participation Plan (CPP) that applies to all planning authorities and functions across NSW.

The CPP was previously fragmented with each Council and LGA having their own set of requirements and consultation standards.

The changes introduce new minimum exhibition periods of:

The changes reshape the IPC’s role, with new requirements to consult councils before decisions with financial impacts, aiming to streamline approvals. 

Additional subsections have been introduced, specifically Sections 4.15 (1A) (1B) (1C) (1D).

These additions ensure that the development standards under Section 4.15 (1) (b) (c) and (e) (“e” to a lesser extent) should not be the sole determining factors for refusing an application.

Only highly relevant matters in relation to likely environmental impact, suitability of the site and the public interest stated in the above subsections should be considered by the consent authority.

For a new category called “Targeted Assessment Development” (see below), the development authority must ignore some of the older technical criteria and focus only on the most relevant planning issues.

What does this mean?

The most important factor moving forward will be whether the proposal complies with planning rules (known as Environmental Planning Instruments), and whether public feedback raises valid concerns.

These changes aim to streamline decision-making, reduce delays, and focus assessments on material planning issues.

To conclude, the “non-discretionary development standards” mentioned here do not prevent consent being granted if they are not complied with as they must now merely be considered.

Section 4.17(4C) has been introduced to inform the applicant about certain conditions being inserted prior to the application being determined.

What does this mean?

This enables the applicant to make written submissions about the proposed conditions within seven days of notification. These submissions (made within the specified period) must be considered for assessment.

This ensures that the applicants are satisfied with the conditions being imposed for their developments, potentially reducing modification applications in the future.

Section 4.17(11) will now have provisions to include “standard conditions of consent” prescribed by the regulations and the SEPP.

There are also “model conditions” prescribed by the SEPP which can be imposed during granting of consent and modifying a consent.

What is the aim of the change?

This implementation was aimed to further reduce processing times while also informing applicants in advance about the likely conditions of consent associated with their proposed development.

A key innovation under the Bill introduced under Division 4.3 A of the Act to further streamline Development Approvals. This was introduced to bridge the gap between full Development Assessments and complying Developments.

The SEPPs will be able to declare certain developments or classes of development as eligible for targeted assessment.

What does this mean?

These developments will be able to bypass the full assessment process allowing for a more proportionate and efficient review.

Under Section 4.31A, The Bill introduces provisions to permit minor variations to development standards within CDC codes that can be done through “variation certificates”.

Councils will have 10 days to assess minor variations to development standards under a Complying Development Certificate (CDC). If no decision is made within that timeframe, the application is deemed approved.

The Bill addresses “zombie consents” – outdated approvals that remain valid but are unlikely to proceed. Under the reforms, all consents will lapse after five years unless meaningfully progressed.