Developers have welcomed a range of measures to help achieve the NSW Government’s commitment of 377,000 homes by mid-2029 under the National Housing Accord but say more needs to be done to address planning approval hold-ups, particularly on the Central Coast.
With councils assessing approximately 85 per cent of all residential development applications, the government has introduced a new Statement of Expectations and league tables regarding development application approvals.
In addition, State agencies’ concurrence and referral timeframes will be published.
Regionally Significant Development Application referral times to planning panels will be published from August, State Significant Development assessment timeframes for infill affordable housing will be published from September 2024, and transit oriented development (TOD) accelerated precinct assessment timeframes in 2025.
This data will monitor the State Government’s performance so that it is also held accountable for any delays.
The new Statement of Expectations Order establishes timeframes for councils on development assessment, planning proposals and strategic planning.
The government’s Faster Assessments program offers financial incentives for councils that meet the new expectations for development applications, planning proposals and strategic planning.
If a council consistently under-performs over time, the Minister for Local Government has the authority to issue a Performance Improvement Order, outlining actions that the Minister requires to be taken to improve the performance of the council.
Minister for Local Government Ron Hoenig says he will step in where there is continued under-performance.
Housing Industry Association Executive Director NSW David Bare said the timeframes set were still too long, as is the period set for councils to achieve them.
“The average DA determination time listed in the Order of 85 days from July 1, 2027, is still more than double the 40 days (deemed refusal) specified for most DAs in the Environmental Planning and Assessment Act 1979,” he said.
“Stronger measures are needed to mandate shorter assessment timeframes now and reduce the excessive submission requirements, particularly for low impact developments.
“The use of complying development also needs to be expanded across the state to decrease the number of developments that need a DA and help reduce overall council workloads.
“If we are going to meet the state’s housing targets and address the housing shortage, then more needs to be done now to speed-up the time it takes to get a planning approval.”
Property Council Hunter and Central Coast Regional Director Amy De Lore said while many councils were hitting targets, Central Coast Council needed some work, with its average assessment time 140 days last financial year.
“We need to take a partnership approach to performance and we’re keen to work with councils to find more ways to streamline approval pathways,” she said.
“More than two billion dollars of development was assessed across the Hunter region last year, with 4,820 projects taking an average 86 days to assess.
“The Central Coast saw $574M of development assessed, with 1,613 projects taking an average of 140 days to complete.
“We need to do everything we can to support councils to be fast and flexible to get more housing moving faster.
“Faster approvals mean more certainty for investors, and this is critical for delivery of the homes we need.”
The Urban Development Institute of Australia says the new ‘league table’ to monitor the performance of councils and state agencies in assessing development applications may only tell part of the story.
“We see the announcement as a great start in providing greater transparency on the development approval process,” CEO Stuart Ayres said.
“It will shine a light on timeframes around the lodgement, acceptance and approval of development applications.
“However, it may only tell part of the story because we are increasingly seeing more and more delays in the period following DA approval to the time it takes to start building.”
The UDIA is encouraging the government to expand the dashboard to also include the time it takes to move from approval to the issuance of a construction certificate (CC) as DAs are increasingly being approved with a significant number of conditions requiring additional approvals.
Many members are reporting the average time to move from approval to construction can be anywhere from six to eight months while they negotiate approvals with water, power, sewer and roads access and other government agencies.
Central Coast Council spokesperson said Council acknowledged the NSW Government’s initiatives to improve Development Assessment (DA) processing and approval timeframes.
“We have, and will, continue to work on a range of actions to improve our services to the community,” the spokesperson said.
“The NSW Government’s League Table shows the variable nature of DAs right across the state, and also the high volume of DAs councils are dealing with – including Central Coast Council.”