The NSW Government has introduced new legislation to shake up the state’s planning system, aiming to fast-track housing approvals and reshape the way development is managed. The Environmental Planning and Assessment Amendment Bill 2025, which proposes changes to the Environmental Planning and Assessment Act 1979 (EP&A Act), is designed to speed up decision-making, reduce delays, and ensure councils meet state housing targets. If passed, it will fundamentally shift how housing supply is planned and approved across NSW, sparking debate over what this means for local councils, developers, and communities.
Government Pushes for Faster Housing Approvals
The biggest change in the Bill is the introduction of state-imposed housing targets. The Minister for Planning and Public Spaces will now have the power to set specific targets for new housing in local government areas (LGAs). These targets will dictate the number of new dwellings required and the timeframe for delivery.
Previously, councils had more control over housing supply. They worked within regional housing strategies but had flexibility in how they met growth targets. Some councils delayed rezoning due to infrastructure concerns or community opposition. Under the new rules, councils must adjust their planning policies to match state-mandated targets. If they fail to act, the state government can intervene and rezone land directly.
The Bill also simplifies the process for modifying development approvals. Developers will no longer need to submit entirely new applications for changes that do not alter the core features of a project. This reduces delays, making it easier to adjust planning conditions without restarting the approval process.
Shorter Public Consultation Periods for Major Developments
The Bill reduces the public exhibition period for State Significant Developments (SSDs). Currently, these projects require at least 28 days of public consultation. The new law cuts this period to just 14 days for projects that include residential accommodation.
The government says this change will speed up the approval process, allowing large housing developments to progress faster. However, some community groups are concerned that less consultation time will limit public input. In high-growth areas, residents may have fewer opportunities to raise concerns about infrastructure, traffic, and environmental impacts.
While the Bill does not remove public consultation, the shortened timeframe may affect community engagement. Many councils rely on public feedback when assessing large projects. With only 14 days for submissions, residents and advocacy groups may struggle to review and respond effectively.
Councils Face More Pressure to Deliver Housing
Local councils must now update their planning rules to match the Minister’s housing targets. This means rezoning land faster, adjusting development controls, and approving more housing projects. If councils do not comply, the state government can step in and enforce planning decisions.
Previously, housing targets were guidelines rather than enforceable rules. Councils could balance growth with infrastructure capacity and community needs. Now, they will have to prioritise housing delivery over other planning considerations.
To meet these targets, many councils may need to approve higher-density developments. Apartments and mixed-use developments are likely to increase, especially near transport hubs and employment centres. Some councils may also need to expand urban growth areas to accommodate new housing.
Industry and Community Reactions
The development industry has welcomed the reforms, arguing that NSW’s planning system is too slow and restrictive. Industry leaders say delays in approvals have contributed to housing shortages and higher costs. By removing planning barriers, they believe the Bill will help boost construction and increase housing supply.
However, some councils and community groups have raised concerns. Many argue that reducing public consultation and increasing state control could lead to poorly planned developments. They also warn that housing approvals should align with infrastructure investment. Without new roads, schools, and transport links, rapid housing growth could strain existing services.
Some experts also question whether streamlining approvals alone will fix the housing crisis. Even with faster approvals, developers need funding, workforce capacity, and market demand to build. Rising construction costs and interest rates remain challenges.
Balancing Housing Growth with Infrastructure Needs
Faster housing approvals must be matched with infrastructure investment. Councils and planners stress that new developments require roads, schools, hospitals, and utilities. Without adequate infrastructure, rapid housing growth could increase congestion and service shortages.
The NSW Government has promised to support new housing with infrastructure funding, but details remain unclear. Some councils worry that rezoning land for housing does not always guarantee state investment. They argue that urban planning must balance growth with long-term infrastructure planning.
Experts suggest a coordinated approach. Faster approvals should be paired with funding for essential services, ensuring that new housing integrates with existing communities.
What Happens Next?
The Environmental Planning and Assessment Amendment Bill 2025 is currently before Parliament. If passed, it will bring one of the biggest changes to NSW’s planning system in years. The government says these reforms will increase housing supply and make approvals more efficient. Critics argue that limiting council discretion and reducing public input may lead to unintended consequences.
For now, councils, developers, and residents will monitor how these changes unfold. The impact on NSW’s housing market, planning system, and urban infrastructure will become clearer over time.
