Local Government NSW (LGNSW) says the NSW Premier has handed property developers an early Christmas present at the expense of every community in NSW, by sidelining councils and communities from the planning and assessment process.
On Friday, Premier Chris Minns announced the establishment of a new state-led approval pathway for major residential housing projects, as well as a process for rezonings – with neither having to be approved by councils in a bid to cut approval times and speed up the delivery of new homes.
“These are huge reforms that we are not proposing lightly, however the scale of the problem requires this significant change,” said Mr Minns.
“For over a decade in NSW, governments have made it harder to build the homes we need, not easier – but this cannot continue if we want to be a city that young people can afford to live in.
“NSW needs significant new housing supply near existing infrastructure but at the same time too many well-located areas in Sydney have put too many barriers up for too long.”
The Premier said the new reform will come into effect in early 2025 following a “short and sharp consultation” with stakeholders.
It will be available for new housing developments above an estimated development cost of $60 million (on average 100 or more homes) in Greater Sydney and a cost of approximately $30 million (on average 40 or more homes) in regional NSW.
The pathway will be overseen by the new Housing Delivery Authority (HDA) and will be established within the Department of Planning, Housing and Infrastructure (DPHI).
The HDA will include the Secretary of the Premier’s Department Simon Draper, the Secretary of the Department of Planning Kiersten Fishburn and the Chief Executive Officer of Infrastructure NSW, Tom Gellibrand.
The Minister for Planning and Public Spaces remains the consent authority for projects through this pathway.
The announcement has been strongly condemned by LGNSW President, Darriea Turley AM.
“Councils are in shock and are bitterly disappointed,” President Turley said.
“We know full well there is a housing crisis, and we honestly thought we were working with the State Government in good faith to address it. We were working collaboratively to improve the planning processes and ensure the voices of our communities are heard as part of any reform.
“Instead, without any warning, the Premier has moved the goalposts and dropped this bombshell.
“Removing councils from the spot rezoning process means removing the community’s voice. It will give developers a clear run to propose their own height limits, density and green space settings – it means developers will now run our communities, not residents.
“This is putting our communities in jeopardy – it’s not just about amenity, it’s about the liveability of our communities – not just for us, but for generations to come.”
President Turley says the new pathway will deliver windfall gains for developers and worsen congestion, create over-crowding and remove the safeguards that protect communities from inappropriate and ad hoc development.
“It also completely undermines community trust in planning,” she said.
“Undermining local planning will put even more pressure on infrastructure and communities, as residential towers rise where the roads, hospitals, schools and open space cannot accommodate them.
“This government is quick to blame delays on councils. Yet it is well established that the overwhelming cause of delays stem from infrastructure delivery issues, cost of materials, labour and financing harming project viability, and other hold-ups from a multitude of government agencies.
“The housing crisis is serious and requires genuine, evidence-based solutions, not scapegoating that ignores the broader challenges in housing construction that are beyond the control of the planning system.
“LGNSW calls on the NSW Government to listen to all communities, not just developers, in addressing the housing crisis. Come back to the table and work with local government, not against us.”
As part of the reform, the Government is also introducing a new pathway that will allow selected projects, which would deliver significant housing uplift but require more significant rezonings, to go through a DPHI led fast track rezoning pathway that does not require a council process.
These projects will also be selected through an EOI process run by the HDA, where proponents will be able to submit rezoning proposals for consideration.
The proposals will be considered against a set of criteria which the HDA will now consult stakeholders on, that are consistent with the state’s housing priorities, said Minister for Planning and Public Spaces, Paul Scully.
“These latest reforms mean the State is taking control of major housing projects so that they have the attention they deserve and get through the assessment process much faster,” said Mr Scully.
“The former government increased red tape so that getting approval to build homes has become incredibly hard.
“The NSW Government will do whatever it takes to build a better future for NSW so young people, families and workers have somewhere to live.”
He said the approach will have the benefit of allowing new projects to go through rezoning and development assessment at the same time.
