Faster benchmarks for assessment of rezonings and development applications in NSW

The Minister for Planning and Public Spaces Rob Stokes has set strict benchmarks for the assessment of rezonings and development applications by local councils and the state government. A new planning order accompanied discussion paper have been released to seek reforms: · Consistent timelines for planning decisions across the planning system; · Powers for the Minister for Planning and Public Spaces to intervene where councils are not upholding their responsibilities; · Proposed improvements to the rezoning process to support prompt decision-making, more informed community consultation, and risk-based approaches to assessments, timeframes and fees; and · A new planning guarantee requires councils to make timely decisions or face having to refund planning application fees. “Planning delays increase housing costs and prevent new housing supply from being delivered in a timely manner," Mr Stokes said. "Our new planning guarantee will give the housing industry confidence that assessment timelines will be achieved. “Last year we cleared 336 rezoning proposals through the system, paving the way for nearly 34,000 jobs and more than 40,000 homes. "These draft reforms will go a step further by reducing timelines by up to a year for standard applications.” In the interim, a new guideline has also come into effect to better explain the rezoning process and introduce new practices to immediately improve the system, including earlier engagement and categorising proposals based on their complexity. The Property Council of Australia has weclomed the "critical changes" to planning proposals and rezoning processes. Property Council’s NSW Executive Director Luke Achterstraat said the changes would address some of the issues and problems which should alleviate pressure on housing affordability and development. “With only 1 of 35 local councils in greater Sydney on track to meet their housing targets, it is clear that greater accountability and timeframes for approvals need to be set,” Mr Achterstraat said. “These changes introduced have included timeframes for assessment of planning proposals which will help planning proposals that have sat in the planning system for unacceptably long periods of time, awaiting assessment. “When a proposed development requires an adjustment to a planning control, the proponent must lodge a planning proposal. The process of obtaining approval can be lengthy, costly, uncertain and onerous, for even minor amendments. “One application was sitting in system for nine years. This uncertainty deters investment and development, and adds additional holdings costs to development, which then drives up the cost of housing and property.” Mr Achterstraat said planning proposal process over the years had become increasingly complex, lengthy and difficult for developers to navigate, with no consistency or certainty in outcomes. “In particular the removal of hostile councils from the assessment and approval of rezonings which have been recognised by the Department of Planning as having merit,” he said. “Previously, if a council refused a rezoning, the proponent could ask for a review by the relevant planning panel and if recognised as having importance, it was given back to the council to finalise, even though the council had previously indicated it did not support the planning proposal. “Fixing our planning system will not happen overnight but the recognition of these supply issues is a very positive step – the Secretary’s focus on delivery, collaboration and trouble-shooting are excellent principles to take into 2022.” For more information and to give feedback on rezoning reforms, visit https://www.planning.nsw.gov.au/rezoning-review.