Housing bodies call for Victorian-style planning changes to address NSW housing demands

Housing advocates have made the rare call for NSW to follow the lead of Victoria by cutting red tape and “unnecessary bureaucracy” from the state’s housing approval process.

A coalition of housing advocates is calling for Premier Chris Minns to delete a layer of NSW Planning to supercharge housing approvals across the state.

Development and business leaders including Business Western Sydney and the Urban Taskforce have called on the NSW Government to follow its Victorian counterparts to remove NSW Planning Panels and hand approval powers for “significant residential development” to the state’s Planning Minister.

Advocates of the changes say removing planning panels could ease Sydney’s housing crisis by streamlining the assessment process for large residential developments.

The planning panels were set up in 2009 to assess and approve significant developments – a process that was previously undertaken by local councils.

But some housing advocates and developer bodies say the planning panels have created an added level of bureaucracy, cost and delay to the approval process.

Business Western Sydney executive director David Borger. Picture: John Appleyard

David Borger, executive director of Business Western Sydney, has called for the state government to follow the lead of Victoria.

“In a housing crisis we have to respond to things differently and I do think NSW could take the lead from Victoria where the minister has taken back powers,” he said.

“Applications are still assessed by planning experts but it makes the process more efficient and streamlined.”

The state government has committed to supporting the construction of 377,000 new homes across the state by 2029 – a target that will require a staggering 5200 homes to be built every month across NSW over the next six years.

In recent months, there have been a string of high-profile developments refused by planning panels including new housing projects in Sydney’s growth suburbs 

Examples of the refused projects include a 177-apartment building Windsor Rd in Vineyard, a 146-apartment development at Guntawong Rd, Rouse Hill as well a $110.8m plan to redevelop Chullora Marketplace into a new housing and retail precinct.

The latest annual report by the Department of Planning shows average assessment time for planning panels to assess development proposals was 332 days in 2021/22.

The Northern Regional Planning Panel had the longest average assessment time – topping 569 days.

Tom Forrest – chief executive of Urban Taskforce which represents developers – said the refusal of developments by planning panels can result in developers having to pursue further time-consuming appeals to the Land and Environment Court.

CEO of the NSW Urban Taskforce. Picture: David Swift

Mr Forrest has echoed calls for the state government to take greater control in the assessment process.

“What we’re finding is that the panels are completely and utterly unpredictable and it’s a flip of a coin whether plans will be approved or not.

“It’s not often we say we should follow the lead of Victoria but this is an example where I think we can.

“In NSW we are world champions in the slowest and most complicated planning system. It’s no wonder we have a housing supply crisis.”

North Sydney mayor Zoe Baker.

The prospect of removing planning panels from the assessment and approval process has sparked rebuke from some local councils including North Sydney.

Mayor Zoe Baker said the panels provide transparency in the determination of significant planning applications.

“If the panels were removed I think it would be another strike against public participation in the assessment of developments,” she said.

“Even when people object to new developments, if they can have faith in the decision making process and see that it’s done in the open, they are reconciled even when things don’t go their way.

“The purpose of the panels was to take away the temptation of corruption from councillors and concentrating power in a single minister isn’t something I think we should be striving for.”

A Department of Planning spokeswoman said the government was currently considering “a range of reforms” to the planning system.