The introduction of the NSW Planning System Reform Act 2025 represents a fundamental pivot in how we approach the NSW planning framework. By moving away from the rigidities of the Environmental Planning and Assessment Act 1979, the state is transitioning toward a model that prioritises speed and project outcomes over administrative red tape.
From 21 March 2026, the second phase of reforms under the Planning System Reform Act 2025 comes into effect, introducing structural changes that materially alter how certain development applications are assessed in NSW.
These reforms are designed to reduce approval timeframes, simplify procedural requirements, and prioritise housing delivery and infrastructure.
For proponents, the implications are practical – and immediate.
In Brief – What Changes in March 2026
- Up to 50% faster assessment timeframes through Targeted Assessment Pathways
- 14-day determination for minor modifications to existing consents
- Proportionate environmental assessment where no DA is required
- Greater flexibility in review and appeal processes
- Ongoing activation of DCA and HDA frameworks
1. The Efficiency Milestone: Targeted Assessment Pathways
Perhaps the most notable shift for our clients is the Targeted Assessment Pathway. Developers who front-load their strategic documentation will gain a measurable competitive advantage under the Targeted Assessment Pathway. new power allows the creation of accelerated assessment pathways for low-risk development that has already undergone strategic planning and community consultation.
Where eligible, assessment timeframes may be reduced by up to 50%.
This is likely to apply to:
- Mid-rise housing aligned with the NSW Housing Pattern Book
- Code-compliant residential development
- Proposals consistent with endorsed strategic planning frameworks
2. 14-Day Determination for Minor Modifications
Minor modifications to existing development consents – where no environmental impact arises – may now be determined within 14 days.
This provides significantly greater construction certainty and reduces the risk of site delays caused by minor design adjustments.
For developers, this introduces meaningful program stability during delivery phases.
3. Proportionate Environmental Assessment (Where No DA Is Required)
Where works undertaken by state agencies, councils or public authorities do not require a development application, environmental assessment obligations must now be proportionate to the scale and impact of the works.
This formalises a risk-based assessment model.
4. Fairer Review and Appeal Processes
The reforms also introduce greater flexibility within review and appeal pathways, aimed at improving procedural fairness and reducing unnecessary escalation.
Reform Foundations Established in December 2025
This builds upon earlier reform stages which:
- Activated the Development Coordination Authority (DCA)
- Cemented the Housing Delivery Authority (HDA) as a permanent state pathway
- Updated the objects of the Environmental Planning and Assessment Act 1979 to include climate change, housing delivery and proportionality
- Introduced powers to address long-dormant “Zombie” development applications
Further regulatory changes are currently on exhibition, including:
- Full establishment of the DCA framework
- A proposed Climate Change and Natural Hazards State Environmental Planning Policy
Strategic Implications for Proponents
The reforms reflect a structural pivot:
The planning system is shifting from process-heavy repetition toward risk-based efficiency.
However, speed will not be automatic.
Eligibility for accelerated pathways will depend on:
- Strategic alignment with endorsed planning frameworks
- Quality upfront environmental and social documentation
- Clear demonstration that impacts have already been resolved
Poorly prepared documentation will not qualify for targeted assessment.
This is where strategic planning input becomes critical.
Planning to Lodge in 2026?
The 2026 reforms materially change your approval strategy.
Speak with our team before lodging to determine:
- Whether your proposal qualifies for Targeted Assessment
- Whether HDA is commercially advantageous
- How to structure documentation to avoid procedural delays
Strategising for 2026: Frequently Asked Questions
What is the Planning System Reform Act 2025?
The Planning System Reform Act 2025 amends the Environmental Planning and Assessment Act 1979 and introduces staged reforms to streamline development assessment in NSW.
The reforms focus on reducing duplication, accelerating low-risk development, improving housing delivery, and introducing proportionate environmental assessment.
When do the Phase Two reforms commence?
The second proclamation of reforms commences on 21 March 2026.
How do I access the 50% faster “Targeted Assessment”?
Eligibility hinges on frontloading your strategic work. Projects meeting specific codes or those consistent with a strategic plan can bypass public exhibition steps, provided the core environmental issues were settled upfront.
What is the Development Coordination Authority (DCA)?
The Development Coordination Authority centralises agency referrals for certain projects.
Rather than proponents receiving fragmented advice from multiple agencies, the DCA provides a coordinated response, reducing duplication and referral delays.
What is the Housing Delivery Authority (HDA)?
The Housing Delivery Authority is a permanent state-led pathway for significant housing proposals.
It allows concurrent rezoning and development assessment, enabling major housing projects to progress more efficiently where they meet state priorities.
What are “Zombie” development applications?
“Zombie DAs” refer to long-dormant development consents that were technically commenced but never completed, sometimes decades ago.
The reforms introduce powers allowing the Planning Secretary to review, modify or revoke these approvals to ensure alignment with modern planning and environmental standards.
Do these reforms replace the Environmental Planning and Assessment Act 1979?
No.
The Environmental Planning and Assessment Act 1979 remains the core planning legislation. The Planning System Reform Act 2025 amends and modernises it.
