In this Rede, we look at the NSW Government’s recent announcement to create a fast-track approval pathway for new housing development to be approved by the Minister for Planning and Public Spaces. Like the introduction in Queensland of Ministerial powers to declare State facilitated development applications, the proposal is aimed at unlocking additional housing supply by fast-tracking developments.
Key Takeaway Points:
- The NSW Government has announced that it will establish a Housing Delivery Authority and will create a fast-track approval pathway for new housing development.
- Access to the approval pathway is to be by way of an EOI process. Selected proposals will be assessed with a flexible approach to planning controls.
- Applications will be decided by the Minister for Planning and Public Spaces and there will be an ability to allow ‘incremental zoning changes’.
- There will be a separate fast-track process led by the Department for more significant rezoning to facilitate new housing.
- Public details of the changes are limited at this stage but the NSW Government has committed to implementation in early 2025.
Like Queensland, the NSW Government is looking at improving approval pathways for housing to address critical shortages in housing supply.
Its latest announcement is the establishment of a Housing Delivery Authority within the Department of Planning, Housing and Infrastructure. It is said that the HDA will oversee applications for major residential housing projects across the state which will be decided by the Minister for Planning and Public Spaces.
These are applications for new housing developments above an estimated development cost of:
- $60 million in Greater Sydney; and
- $30 million in regional New South Wales.
Details of the HDA and the new housing approval process are limited to a media release which commits the NSW Government to a ‘short and sharp consultation process’ and an ambitious commencement date of ‘early 2025’.
Like the Queensland State facilitated development pathway, proposals will need to be accepted as suitable for the pathway by way of an expressions of interest (EOI) process.
The criteria for consideration of EOIs is to be prepared but we expect that this will include a requirement for an affordable housing component and consideration of planned or available infrastructure to service the population.
It is said that accepted proposals will be assessed “with a flexible approach to planning controls, including any incremental zoning changes required to pursue a development application.” This suggests the Minister could approve both a zoning change and give an approval for the specific housing development proposed.
The announcement also includes a proposal for a ‘fast track rezoning pathway’ where more significant rezoning is required to facilitate development for housing. It is said this will be Department led and represents a shift away from the central role of local government in advancing rezoning proposals, which typically take a number of years to finalise.
It is worth recalling that there are existing state planning instruments that facilitate the approval of housing projects at the state level. Forms of State significant development are identified in the Schedules to the State Environmental Planning Policy (Planning Systems) 2021 and include development for in-fill affordable housing, built-to-rent housing and seniors housing. The State significant development pathway does not however result in reduced assessment timeframes and arguably increases the complexity of the assessment process.
It will be interesting to see if a true ‘fast-track’ path can be successfully established.
It will also be interesting to see how community and local government respond to this proposal after what was considered a popular decision to abolish the ‘Part 3A’ Ministerial approval powers for major development in 2011.
In recent years the NSW Government has become more active in having the Department and its Independent Planning Commission involved in place of local government in the planning approval process, across all types of development.
Contact our NSW planning law expert, Vanessa Walsh, for assistance regarding the implications of the new approval pathways. Vanessa is an experienced NSW planning law practitioner. She advises on all aspects of planning approvals, including voluntary planning agreements and in Land and Environment Court merits appeals for local government and private clients.
