NSW housing industry celebrates passage of Planning System Reforms Bill 2025

The New South Wales housing industry is celebrating a significant legislative milestone with the passage of the Planning System Reforms Bill 2025 through parliament. The new legislation is set to transform the way planning approvals are handled across the state, promising to streamline processes and reduce bureaucratic hurdles that have long stifled development.

Brad Armitage, the Executive Director of the Housing Industry Association (HIA) NSW, heralded the bill’s passage as a pivotal moment for the sector. “Today is a great day for the housing industry in NSW with passage of the Planning System Reforms Bill 2025 through parliament,” he stated, emphasising the relief and optimism felt by industry stakeholders.

For years, developers and builders have criticised the NSW planning system for being cumbersome, slow, and prohibitively expensive. The newly enacted reforms aim to address these issues by simplifying approval processes and eliminating unnecessary red tape. “For too long, navigating the NSW planning system has been difficult, slow and costly. The reforms contained in the Bill will help streamline approvals, remove unnecessary red tape and provide more certainty for the industry,” Armitage explained.

One of the significant changes introduced by the bill is the implementation of a more consistent and risk-based approach to development assessment. Armitage highlighted the inefficiencies of the current system by pointing out the incongruity in the approval processes for different types of projects. “Why is it that a deck in a backyard is subject to mostly the same planning approval processes as a football stadium? This new bill will make the process of getting an approval easier, allowing more shovels in the ground faster and ultimately more keys in doors,” he said.

The reforms are expected to particularly benefit straightforward, low-risk developments, which will now be considered as complying development. This change is anticipated to free up local councils, enabling them to concentrate their resources on more complex assessments. “These long overdue reforms will also enable more straightforward, low-risk developments to be considered as complying development, freeing up councils to focus on more complex assessments,” Armitage noted.

The HIA has been a vocal advocate for these changes, recognising them as crucial to overcoming daily obstacles faced by the industry. “HIA has strongly advocated for the need for changes to the planning system and these significant reforms address some of the key obstacles the industry faces every day,” Armitage said, underscoring the association’s commitment to fostering a more efficient planning environment.

The bill’s passage was made possible through bipartisan support, with the NSW Opposition playing a critical role in its development and approval. “HIA also acknowledges the role of the NSW Opposition in these reforms, whose bipartisan support assisted in the development and passage of the Bill,” Armitage acknowledged, highlighting the collaborative effort required to bring about these changes.

While the passage of the bill marks a significant step forward, Armitage cautioned that there remains work to be done. The HIA is eager to continue collaborating with the NSW Government to ensure the effective implementation of the reforms. “There is still a lot more to be done and HIA looks forward to continuing to work collaboratively with the NSW Government on the implementation of the reforms,” he concluded.

As the industry anticipates the positive impacts of the Planning System Reforms Bill 2025, stakeholders are hopeful that the changes will lead to faster project completions and increased housing availability across New South Wales. The reforms are seen as a necessary evolution in the planning framework, promising to make the state a more attractive and efficient place for residential development.