What property developers need to know
In November 2025, the NSW Parliament passed the Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025, which is the most significant overhaul of the NSW planning system in decades. Over time, the planning system had become overly complex, slowing critical housing projects and stifling investment and job creation throughout the state. With the latest round of changes now live from 21 March 2026, the reforms are designed to cut through the bottlenecks that have long slowed housing and infrastructure delivery across NSW.
At Law Team, we take a preventative approach to legal challenges, and keeping our clients ahead of the latest developments is central to what we do. If you are a property developer or agent, our property law team can help you navigate these changes with confidence.
Key Takeaways
The Planning System Reforms Act 2025 is the most significant overhaul of the NSW planning system in decades.
Minor modifications to existing development consents can now be approved in as little as 14 calendar days.
A new targeted assessment pathway could cut approval timeframes by up to 50 per cent for eligible projects.
Environmental impact assessments by public authorities are now proportionate to the scale and risk of the activity.
What is the Planning System Reforms Act 2025?
The Planning System Reforms Act 2025 amends the Environmental Planning and Assessment Act 1979, which has guided NSW planning for more than 40 years but has become too complex and slow to meet the state's current needs. The Act is designed to reduce complexity, speed up approvals and help NSW hit its target of 377,000 new homes by 2029. So far, the reforms have been implemented in two stages, first in December 2025 and most recently on 21 March 2026.
What are the key reforms introduced under the Planning System Act?
The Act introduced several key reforms to simplify and speed up the planning process:
The new Development Coordination Authority (DCA) combines government agency advice into a single, coordinated response.
The Housing Delivery Authority is now formally legislated, creating an enduring state-level pathway to fast-track major housing projects.
The Complying Development pathways have been expanded to enable faster approvals of low-impact development.
A new targeted assessment pathway has been created for projects that have already gone through strategic planning and community consultation.
The objects of the EP&A Act have been updated to include housing delivery, climate resilience and proportionality in assessments.
Over 100 individual community consultation plans will be replaced by a single, statewide plan.
Regional planning panels and outdated assessment pathways have been removed to cut unnecessary duplication across the system.
| Feature | Old System (Pre-2026) | New System (Post-March 2026) |
|---|---|---|
| Minor Modifications | No set timeframe; often months. | 14 Calendar Days (Deemed approval). |
| Agency Advice | Multiple separate agency referrals. | Single response via DCA. |
| Environmental Scrutiny | "Fullest extent possible" for all. | Proportionate to scale and risk. |
| Appeal Rights | Rigid "deemed refusal" windows. | Appeal anytime until the decision is made. |
What are the planning changes that took effect from 21 March 2026?
Four key changes to the Act went into effect on March 21, 2026, including targeted assessment pathways, proportionate environmental impact assessment, faster modifications to development consents, and updated review and appeal rights. If you have projects in your pipeline, it is worth understanding exactly how each of these affects your approvals process.
Targeted Assessment
The targeted assessment pathway is a new fast-track approval option that could cut assessment timeframes by up to 50 per cent for eligible projects. It sits between complying development and a full development application and applies where key environmental impacts have already been addressed through earlier strategic planning. To be eligible, a development must be declared in a State Environmental Planning Policy (SEPP) following a mandatory 28-day public exhibition period.
Proportionate Environmental Impact Assessment
Changes to Part 5 of the EP&A Act mean that public authorities are no longer required to assess environmental impacts to the greatest extent possible. Instead, the level of assessment must now be proportionate to the nature and risk of the activity, reducing unnecessary detail for low-impact projects while maintaining protections where they matter.
Faster Modifications to Development Consents
If you need to change an existing development consent without environmental impact, the expanded section 4.55(1) pathway is now available to you. Previously, this pathway was limited to administrative corrections like errors and miscalculations, but it now covers a much broader range of minor modifications. Consent authorities now have 14 calendar days to determine these applications. If no decision is made within that timeframe, the modification cannot be refused. This applies to applications lodged on or after 21 March 2026, regardless of when the original consent was granted.
Updated Review and Appeal Rights
Applicants now have six months to request an internal review of a development application decision, with no set timeframe for councils to respond. For deemed refusal appeals, you can now appeal at any time from the end of the assessment period right up until a decision is made.
What do these reforms mean for you?
If you are a property developer, these reforms are worth paying attention to right now. Here are some practical steps to consider:
Review any existing development consents to identify modifications that may now qualify under the faster 14-day pathway.
If a decision on your project has been delayed, check whether the updated review and appeal rights apply to your situation.
Speak to a property lawyer before lodging any modification applications or appeals to make sure you are on the right track.
The planning landscape in NSW has shifted, and the right advice now can save you significant time and cost down the line. Get in touch with Law Team today, and let's talk through what these changes mean for your projects.
This article is general information only and doesn't constitute legal advice. If you'd like advice tailored to your business, get in touch with our team.
About the Author: Erin Vassallo
Erin Vassallo is the Principal Solicitor and founder of Law Team, a values-led law firm with a strong reputation across New South Wales and Queensland. With over two decades of experience in commercial, construction, and property development law, Erin is a trusted advisor to developers, landowners, and business owners navigating complex projects and legal risk.
Her hands-on experience includes joint ventures, structuring development deals, contract negotiation, risk mitigation, and project governance across residential, commercial, and mixed-use developments. Erin holds qualifications in law, political science, mediation, and disruptive strategy (Harvard Business School) and is the founder of Certified BCorp Law Team, committed to ethical business practices and social impact.
Frequently Asked Questions
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The first stage of reforms commenced on 15 December 2025, with the second and most recent stage taking effect on 21 March 2026.
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It is a new fast-track approval option for eligible low-risk projects that have already gone through strategic planning and community consultation, potentially cutting assessment timeframes by up to 50 per cent.It is a new fast-track approval option for eligible low-risk projects that have already gone through strategic planning and community consultation, potentially cutting assessment timeframes by up to 50 per cent.
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Yes. If your modification does not have an environmental impact, it can now be assessed under the expanded section 4.55(1) pathway, with consent authorities required to decide within 14 calendar days.
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You can now appeal at any time from the end of the assessment period right up until a decision is made, giving you greater flexibility and certainty when delays occur.