Councils cut from big builds
The NSW Government is going around councils to tackle housing delays and supply issues.
Premier Chris Minns has announced the creation of a Housing Delivery Authority (HDA) to fast-track approvals for major housing developments.
The reform, effective in early 2025, removes council involvement in significant projects, aiming to accelerate housing delivery statewide.
The HDA will oversee a new approval pathway for developments costing over $60 million in Greater Sydney and $30 million in regional NSW.
These thresholds correspond to projects with 100 or more homes in Sydney and 40 or more homes in regional areas.
Under the new system, an expression of interest (EOI) process will select projects for consideration. The government says assessments will be merit-based, with flexibility in zoning changes. The Minister for Planning and Public Spaces will retain final approval authority.
The government is also introducing a fast-track rezoning process for projects requiring significant zoning adjustments. Rezoning and development assessments will run concurrently, entirely bypassing councils.
“For over a decade in NSW, governments have made it harder to build the homes we need, not easier - but this cannot continue if we want to be a city that young people can afford to live in,” the Premier says.
The reforms aim to shorten approval times by years, enabling councils to focus on smaller projects.
“These latest reforms mean the State is taking control of major housing projects so that they have the attention they deserve and get through the assessment process much faster,” said Minister for Planning and Public Spaces Paul Scully.
But the reforms have drawn sharp criticism from Local Government NSW (LGNSW), which argues they undermine community involvement and hand too much power to developers.
“Removing councils from the spot rezoning process means removing the community's voice,” said LGNSW President Cr Darriea Turley. She warned of increased congestion and infrastructure strain.
LGNSW has called for collaboration with councils to address broader housing delays, including high material costs and labour shortages.