Marcus Tole
Commercial Property Analyst
Christian Finianos
Commercial Property Researcher
Under the previous referral process, a Development Application could require advice from multiple state agencies. According to the NSW Government, each additional referral could add around 100 days to the assessment process.
A series of planning reforms is now addressing this, including a new Development Coordination Authority, an expanded minor modification pathway, and new council assessment targets.
What Has Changed
The main planning reforms include:
- A central authority for NSW Government referrals
- An expanded 14-day pathway for eligible minor modifications
- Greater focus on significant planning and environmental impacts
- Progressively shorter council assessment targets
Additional complying development and targeted assessment pathways are being developed but are not yet available.
Why the Development Coordination Authority Was Introduced
The NSW Government reported that, under the previous referral process, a Development Application could require advice from multiple state agencies. Each additional agency referral could add around 100 days to the assessment process.
The Development Coordination Authority replaces this fragmented approach with:
- One central point for state agency input
- One coordinated NSW Government response
- A 28-day response timeframe
The 28-day period applies to government agency input. The DCA does not determine the Development Application.
Faster and More Focused Assessments: Expanding the Minor Modification Pathway
Section 4.55(1) was historically used mainly for administrative changes, including errors, misdescriptions and miscalculations.
The NSW Department of Planning identified that the pathway had been underutilised. From 21 March 2026, its scope was expanded to include other modifications that have no environmental impact.
Eligible applications now have a 14-calendar-day determination period.
New Council Assessment Targets
The NSW Government identified that delays in lodging and assessing Development Applications slow the delivery of housing and other projects.
Since the council league table was introduced in July 2024, average assessment times have reduced from 115 days to 84 days, a 31-day improvement as at 31 May 2026.
The Government has now set progressively shorter average targets:
- 1 July 2026 – 90 days
- 1 July 2027 – 80 days
- 1 July 2028 – 65 days
Councils already performing faster than these targets are expected to maintain their better timeframe. These are average performance targets, not guaranteed approval times for every Development Application.
Why This Matters: RWC Western Sydney’s View
The reforms are unlikely to transform the planning system on their own. However, greater coordination and clearer timeframes may help reduce avoidable delays at specific stages.
This is particularly relevant in the current higher interest rate environment. While awaiting approval, developers continue to carry:
- Financing costs
- Landholding costs
- Consultant costs
- Other project expenses
Even modest time savings may help limit these costs and allow suitable projects to progress more efficiently.
One Part of a Broader Solution
A more efficient approval process may help suitable projects progress towards construction sooner and contribute to a larger pipeline of approved developments. This is particularly important as NSW works towards enabling 377,000 new homes by 2029.
However, planning approval is only one part of project delivery. Financing, construction costs, presales and infrastructure will continue to influence whether and when projects proceed.
Practical Takeaway
Even modest time savings may help limit financing, landholding, consultant and other project costs, and allow suitable projects to progress more efficiently. That said, planning approval is only one part of project delivery, financing, construction costs, presales and infrastructure will continue to influence whether and when projects proceed.
Assessing a Commercial Property or Development Site?
Contact RWC Western Sydney to discuss the property and market implications.