SA planning reform to cost $43.6m over five years with bulk coming from open space kitty, Vickie Chapman reveals

The true cost of the state’s delayed planning reforms has been revealed – and the major source of funds will anger many.

The cost of the state’s new planning system is expected to hit $43.6m, nearly double an initial estimate and with the bulk of money coming from a fund earmarked for open space.

Planning Minister Vickie Chapman has revealed the cost of the delayed new planning and design code and online planning portal, under questioning from Opposition planning spokeswoman Jayne Stinson in Budget estimates.

Ms Chapman said the anticipated $43.6m spend included $27.6m on capital costs and $16m on operational costs in the five years to June 2021.

The planning reforms, aimed at streamlining applications and standardising planning policy across comparable areas across the state, were announced by former planning minister John Rau in 2016 with an initial $25.8m budget.

Planning Minister Vickie Chapman has revealed the cost of the state’s planning reforms could top $43.6m Picture: Tait Schmaal

Ms Chapman said as of October 12, developing the new planning system had cost $37.3m and that Mr Rau had spent a “good slice” of the $25.8m before he left parliament.

“The last two-and-a-half years we have had to find a lot more (money),” she told the estimates hearing.

The government and the planning department have been accused of raiding an open space fund, financed through developer’s subdivision levies, to pay for its planning reforms.

Ms Chapman revealed that $25.5m of the expected $43.6m budget will be financed from the so-called planning and development fund.

A further $16.9m is from “general appropriation”, $1.1m from council levies and $100,000 in federal funding for bushfire mapping, Ms Chapman said.

Labor's planning spokeswoman Jayne Stinson says there is “nothing to show” for the cost of the state’s planning reforms.

The new planning system is operating in small country councils and Outback areas but it is undergoing a second round of consultation before it is “switched on” in major regional towns and the rest of the state.

The delay followed concern from industry groups, residents and councils that the reforms were being rushed, that the draft code contained errors and planning changes would destroy character of existing neighbourhoods.

Ms Chapman could not stipulate a precise date when the code would be fully operational but said it would be early next year.
She said there had been challenges in holding public consultation events on the code.

The government’s planning and land use services executive director Sally Smith said 75 people had attended five webinars with a further six scheduled. But only 32 people had registered for nine face-to-face drop-in events, which have been postponed.

Consultation on the revised code will end on December 18.

Ms Stinson said the “ballooning cost” of the reforms were due to government delays.

“The reforms were delayed to June, then September, now who knows when in 2021,” she said. “It’s a lot of money – but so far there’s nothing to show for it.

“The scary thing is, there’s still so much work left to do before the reforms take effect, and the cost is racking up each day.”

Code consultation events can be found at www.plan.sa.gov.au

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