States divided on planning reform as housing targets fall short
By
Photo by Kindel Media
The Housing Industry Association (HIA) has unveiled its 2026 Planning Blueprint Scorecard, highlighting a widening chasm between states that are implementing bold reforms and those adhering to a ‘business-as-usual’ approach. The report underscores the pressing need for transformative changes in Australia’s planning systems to meet ambitious housing targets.
According to the HIA’s Executive Director of Planning & Development, Sam Heckel, while some states have started to gain momentum in overhauling their outdated planning systems since the inaugural scorecard in 2024, the lag between policy announcements and actual implementation remains a significant hurdle. “Since our inaugural scorecard in 2024, some states are gaining momentum on overhauling their outdated planning systems. However, the delays from announcements to implementation means that for many builders, very little has changed,” Mr Heckel stated.
The 2026 Scorecard offers a detailed audit of Australia’s fragmented planning systems, revealing a mixed bag of progress across the country. Western Australia (WA) and South Australia (SA) have emerged as top performers, driving housing supply through extensive rezoning and land release initiatives. WA has notably streamlined approvals by expanding Development Assessment Panels and introducing exemptions for single houses. Meanwhile, SA is leading the nation with digital innovations, including a unified planning scheme and a land supply dashboard.
New South Wales (NSW) has been identified as a standout reformer, undertaking its most significant planning overhaul in decades. Through state-led rezonings, pre-endorsed design ‘pattern books,’ and a newly established development coordination authority, NSW is making substantial strides. This proactive approach has positioned NSW as a major improver in the latest scorecard.
Victoria, on the other hand, is gaining momentum with improvements in townhouse and small subdivision approvals. Nonetheless, the HIA warns that the commercial viability of these projects is under threat from new taxes linked to affordable housing and the Suburban Rail Loop. The Australian Capital Territory (ACT) is also making positive reforms with proposals to increase ‘missing middle’ housing and rezonings. However, persistent barriers in environmental laws and excessive costs through lease variation charges continue to pose challenges.
Queensland, Tasmania, and the Northern Territory are areas of significant concern, according to the HIA report. Queensland remains at the bottom of the rankings, having rejected key planning reforms recommended by the Queensland Productivity Commission due to potential local government opposition. Tasmania and the Northern Territory are urged to take urgent action to resolve infrastructure funding and land-use strategy delays.
Mr Heckel emphasised the urgency of reforming outdated planning systems to empower the building industry. “As a consequence of previous shortfalls, achieving the Housing Accord target now requires building 260,000 new homes each year. Reforming outdating planning systems is the first step in empowering the building industry to increase their output,” he said.
The scorecard’s findings paint a stark picture of the current state of planning reforms across Australia. “From granny flats to high-rises and everything in between, Australia needs a diverse mix of homes and a constant supply of ‘shovel ready’ land which our planning systems have clearly failed to deliver,” Mr Heckel added.
Despite the progress made by some states, no jurisdiction has scored greater than 3 out of 5 on their planning reforms. The HIA is calling for Commonwealth leadership to provide a ‘best practice’ toolkit, including AI-driven assessment software and design pattern books. “Disappointingly no jurisdiction has scored greater than 3 out of 5 on their planning reforms. HIA is calling for Commonwealth leadership to provide the ‘best practice’ toolkit— including AI-driven assessment software and design pattern books,” Mr Heckel concluded.
The HIA’s 2026 Planning Blueprint Scorecard serves as a crucial wake-up call for Australian states and territories to accelerate their planning reform efforts if they are to meet the nation’s housing needs.