Proposed changes to EP&A Act focus on increasing housing supply

On 17 September 2025, the NSW Premier, Treasurer and Planning Minister announced the Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025 (the Planning Bill).

The Planning Bill (available here), which has bipartisan support in Parliament, would see a raft of changes to the Environmental Planning and Assessment Act 1979 (the EP&A Act).

These changes, which would see a reduction in development assessment time frames and simplified approval processes, are pointedly aimed at increasing the housing supply. Planning Minister, The Hon. Paul Scully MP said in his second reading speech:

Our reforms have been guided by the following principles: We need more homes and jobs, we need well-located homes around transport infrastructure, we need more social and affordable housing, we need to make sure these new homes are well designed and well built, and we need to approve them and build them as quickly as possible. We need to reform the confused planning system.

In this Insight, we highlight some of the key changes that would result with the passing of the Planning Bill.

First, the objects of the EP&A Act would be amended. There is a shake-up and re-ordering of some existing objects, but new objects of note to guide decision-making include:

• new object 1.3(b), "to promote the supply, delivery and maintenance of housing, including affordable housing", a clear signal as to what is driving the Planning Bill;
• new object 1.3(e) "to promote resilience to climate change and natural disasters through adaptation, mitigation, preparedness and prevention"; and
• new object 1.3(j) "to promote a proportionate and risk-based approach to environmental planning and assessment".

Interestingly, the object "to protect the environment" would be removed if the Planning Bill is passed. The object of promoting protection of the health and safety of building occupants would also be deleted. This is in the context of the Environmental Legislation Amendment Bill 2025, which we wrote about in an earlier Insight and that bolsters environmental protection, passing both Houses of Parliament on 18 September 2025.

Second, in a planning system where the supply and delivery of housing can be dependent on obtaining advice from numerous NSW government agencies as "concurrence" authorities or otherwise, the Planning Bill results in the creation of a new "Development Coordination Authority" (DCA) as a central body to determine whether general terms of approval for integrated development are required, and on occasion determine those general terms of approval.

The creation of the DCA would effectively remove the need for a consent authority to refer a development application to up to 22 different agencies for different aspects of a proposed development. The DCA will bring together technical experts from a range of agencies under one roof to determine general terms of approval which in turn inform conditions of a development consent. Minister Scully was clear that "There will be no weakening of environmental protections or standards. DCA's experts will continue to apply the same legislation, policies and standards set by agencies." The evident aim is to avoid inconsistencies between different government referral agencies.

Third, the Planning Bill proposes to make the "Housing Delivery Authority" (HDA), which was introduced in December 2024 pursuant to a Ministerial Order, a permanent statutory authority. The purpose of the HDA is to provide a mechanism by which proposals for large housing developments can be fast-tracked into the "State Significant Development" (SSD) regime.

Fourth, the Planning Bill would see an increase in the use of the "complying development" pathway, which is presently utilised to streamline applications for what might be deemed minor development. Crucially, where an application for complying development is sought to be altered, local councils will now have a maximum of 10 days to determine the application. If no decision has been reached within that time, the application will be deemed to be approved. The Planning Bill would also expand complying development to allow for minor variations to the standards where there is minimal impact without requiring a full development application. Instead, a "variation certificate" would be applied for and issued for minor departures from the CDC standards (e.g. setbacks, landscaping).

Fifth, a new pathway known as "targeted assessment development" will fill the gap between complying development and a full DA process. The type of development that can access this new pathway will be declared in State Environmental Planning Policies (SEPPs). Certain evaluation criteria in s4.15 of the EP&A Act will be "turned off" for targeted assessment developments, including the likely impacts of the development on the environment, the suitability of the site for the development and the public interest. The assumption is that those aspects of the assessment have already been completed as part of the SEPP-making process. Fewer, if any, consultant reports will need to be submitted in support of a targeted assessment development application.

Sixth, "zombie" consents, which are historic consents that legally commenced but weren't completed, will have two new pathways to resolution. First, the consents can be revoked with compensation paid to the landowner if the "zombie" consent is inconsistent with current environmental standards. Second, orders can be issued to direct that works be completed in a specified time to avoid the consent lingering on.

Seventh, minor modifications able to be assessed under s4.55(1) of the EP&A Act will be expanded to include where there is no environmental impact arising from the modification. The modification application would need to be assessed within 14 days, or else it is deemed to be approved.

Eighth, a new framework will be introduced to provide for 'standard' and 'model' conditions of consent in SEPPs or the EP&A Regs. There is also a welcome addition for developers in that before a consent authority imposes a condition on a development consent for certain development, the applicant must be given a copy of the condition and the opportunity to make written submissions. This collaborative approach will hopefully reduce the need for modification applications or conditions appeals.

Ninth, there is likely to be a reduction in "deemed refusal" appeals in the Land and Environment Court as such an appeal will be able to be filed at any time prior to determination by the consent authority, rather than only within 6 months. This removes the motive to file an appeal just before the 6-month period to avoid losing appeal rights until a DA is determined.

Tenth, public authorities assessing activities under Part 5 of the EP&A Act will no longer be required to consider environmental impacts "to the fullest extent possible". Instead, assessment will be required to be "in a manner that is proportionate to the nature and risk of the activity". This should reduce the burden on public authorities seeking to undertake routine work like installing signage.

Early takeaways

This is the most comprehensive amendment to NSW's planning legislation since 2018, with a clear focus on reducing red tape to increase the housing supply. This is a legislative response to what industry, and the media has been telling us for a long time - that the regulatory processes around development in NSW has meant that housing delivery is too slow, and the NSW Government's ambitious targets won't be met unless a more streamlined regulatory process is implemented. The key provisions of the Planning Bill outlined above will go some way to speeding up this process.

If you have any questions about the Planning Bill or would like to know how the legislative changes may impact your business, please contact Tom White (Partner), Joanna Kenny (Special Counsel), Alex Beale (Special Counsel) or Juliette Reskov (Lawyer) in our Environment and Planning team.