- Changes to the Planning Regulation 2017 have taken effect so as to require social impact assessments and community benefit agreements for wind and solar farms
- Some changes have been made since the publication of a consultation draft of the amendments in May
- A new version of the Development Assessment Rules has commenced to support the amendments
- Local governments should be aware of financial reporting requirements and required inclusions in planning and development certificates relating to social impact assessments and community benefit agreements
The commencement of the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Regulation 2025 (the Amendment Regulation) on 18 July 2025 means that requirements for social impact assessments and community benefit agreements are now in effect. These requirements were discussed in our Insight here following publication of the consultation draft of the Amendment Regulation.
The commencement of the Amendment Regulation is part of a broader package of legislative amendments which also included changes to streamline the planning approvals process for the 2032 Olympic and Paralympic Games venues, villages and games-related transport infrastructure. For discussion of those changes, see our Insight here.
The Amendment Regulation included some changes from the consultation draft published in May 2025.
- Change to trigger for social impact assessment for solar farm: The consultation draft had proposed to include a threshold for social impact assessment for solar farms based on either the quantum of electricity generated or the total area used for solar panels and structure. It is now by reference to electricity generated only (maximum electricity output of 1MW or more). The Amendment Regulation also refers only to solar farms, not the previous ‘relevant renewable energy facility’.
- Changes to pre-existing applications: For existing development applications for wind farms and solar farms which are the subject of Ministerial direction or call-in, the consultation draft required the Minister to have decided prior to 18 July whether or not to require preparation of a social impact assessment or community benefit agreement. As enacted, the position is that the assessment of those applications will restart when either the social impact assessment or community benefit agreement is provided or the Minister gives notice that either or both are not required.
- Change to matters for consideration by Chief Executive in decision to not require social impact assessment or community benefit agreement: The Amendment Regulation is more prescriptive in stating the matters that the Chief executive must consider in deciding whether to allow a development application to be made with a social impact assessment or community benefit agreement. Although the matters for consideration are unchanged, the language has changed from ‘may’ consider to ‘must’ consider. This frames the exercise of discretion of the Chief Executive in any decision to not require either an SIA to CBA.
A new version of the Development Assessment Rules (DA Rules) has also commenced with updates to reflect the new requirements for social impact assessment and community benefit agreements.
- If there is a change to the social impact assessment or amendment to the community benefit agreement during the course of assessment of the application, this is a trigger to restart the decision period for the application.
- Schedule 1 of the DA Rules has amended the considerations for what constitutes ‘substantially different development’ for the purpose of a change application. For development that requires social impact assessment, where a proposed change introduces new social impacts, or increases the severity of known social impacts, this may be an indicator that substantially different development is proposed.
- Part 5 and Part 6 of Schedule 3 of the DA Rules establish a process for notification of development applications and change applications subject to social impact assessment. These sections include specifications as to:
- public notice to affected local governments, owners of lots adjoining the proposed development premises and lots within 1500m of the proposed development;
- public notice and notice of compliance on community notice boards; and
- notices published on the assessment manager’s website.
Implications of the changes for local government
Local governments should be aware of the updates to Schedule 23 of the Planning Regulation 2017 which have taken effect under the Amendment Regulation.
From 18 July 2025, planning and development certificates are required to include the following:
- For standard and full certificates:
- a copy of any social impact assessment report for an application for a development approval in effect for the premises, if the local government has been given a copy of the report;
- a copy of any community benefit agreement applying to the premises that the local government—
- is a party to; or
- has received a copy of under section 106Z(3) of the Planning Act 2016 (required where the agreement is with another entity, not the local government)
- For full certificates, where a community benefit agreement applies to the premises and the local government is a party to the agreement:
- details of the nature and extent of any obligations under the agreement that have not been fulfilled; and
- details of any security required under the agreement, including whether any payment required to be made under the security has been made.
The Local Government Regulation 2012 has also been amended to require reporting in a local government annual report about:
- Total financial contributions made to a local government under a community benefit agreement or by way of a condition of a development approval requiring a contribution to address social impact of a development; and
- Total spending by the local government of those financial contributions made to and the purposes for which the contributions were spent.
