Navigating NSW Planning Changes in 2025: What You Need to Know

Plan BE
Jul 25
5 min read

Updated: Sep 10

#nswplanning #developmentapplications #townplanningadvice #zoning #localcouncilapproval

The NSW planning system has undergone some of its most significant reforms in recent years, with 2025 marking a pivotal shift in how development approvals are handled across the state. From fast-tracking housing projects through the new Housing Delivery Authority to expanded development consent powers and streamlined application processes, these changes aim to deliver more homes, more quickly, without sacrificing planning integrity. Whether you're a homeowner looking to build a secondary dwelling or a developer managing large-scale residential projects, it’s critical to understand what’s changed, what’s stayed the same, and how it all affects you.

In this post, we’ll break down the key NSW planning changes in 2025, compare them to previous planning frameworks, and walk through what these reforms mean for different types of applicants, from individual property owners to larger industry stakeholders. You'll also find a summary table of old vs new planning rules, as well as practical advice on navigating the updated system. Let’s get into it.

The Environmental Planning and Assessment Amendment Act 2025

The Environmental Planning and Assessment Amendment Act 2025 was passed in May and marks a significant reform of the planning system. These updates respond to long-standing legal constraints and policy inefficiencies.

One of the biggest changes is the expanded ability to modify development consents. Previously, changes were limited to projects involving physical alterations. Under the new law, even proposals that only modify conditions of consent, without physical changes, may be approved. This overturns prior interpretations, such as those stemming from the Kuringgai Council v Buyozo case in 2021.

The law also allows affordable housing contributions to be mandated under any environmental planning instrument, broadening the ability of councils and government to secure contributions beyond Local Environmental Plans.

Concept development consents have been clarified too. New development approvals can now be issued even if they conflict with the original concept approval, provided the original consent is surrendered or modified appropriately.

State Significant Development applications have also become faster to process. Public exhibition periods for some SSD projects have been reduced to 14 days, down from the previous minimum of 28 days, streamlining timelines for projects that meet specific housing delivery criteria.

These legislative reforms have also formally embedded the Housing Delivery Authority into the assessment process, granting it stronger powers and responsibilities over major residential development.

The Housing Delivery Authority

The Housing Delivery Authority was launched at the end of 2024 and fully integrated into the system in early 2025. Its purpose is to accelerate the delivery of major housing projects across the state.

Projects can qualify for assessment under the HDA if they meet certain thresholds. In regional areas, 40 homes or a capital investment value of at least 30 million dollars. Within Greater Sydney, these include 100 or more homes or a capital investment value of at least 60 million dollars.

Once a project meets these requirements, it may be declared State Significant Development and can bypass traditional local council pathways. This fast-tracking model is intended to deliver homes faster and more efficiently. At the time of writing, approximately 86 projects have entered the pipeline under this pathway.

Low and Mid-Rise Housing Policy

In February 2025, the NSW Government rolled out the Low and Mid-Rise Housing Policy across 171 town centres in Greater Sydney, the Central Coast, Illawarra, and the Hunter regions.

This policy enables the construction of dual occupancies, terraces, townhouses, and manor houses in low-density residential zones that are located within 800 metres of key transport hubs.

It builds on previous reforms from mid-2024 that began opening these housing types to more areas. The new policy is expected to unlock the potential for more than 112,000 new homes over the next five years.

The goal is to increase housing diversity and affordability without compromising on design, location suitability, or infrastructure capacity.

Subdivision and Certification Updates

From 2025, new regulations have broadened the ability of private certifiers to approve subdivisions and multi-dwelling developments. Previously, most subdivisions required direct council approval.

Under the Low Rise Housing Diversity Code, developments like townhouses and dual occupancies may now be certified privately. This reduces bottlenecks and increases flexibility in the assessment process.

Updated rules also apply to lot orientation, service easements, and early engagement with certifiers. These practical changes help developers plan more efficiently and avoid unnecessary delays.

NSW Planning Changes 2025 Compared with Previous Years

Here’s a simplified breakdown of what’s different in 2025 compared to the planning framework before the reform.

Previously, you could only modify a development consent if it involved a physical change. Now, modifications that only involve planning conditions can be approved more easily.

In the past, affordable housing contributions could only be mandated through Local Environmental Plans.

As of 2025, they can be required under any environmental instrument.

State Significant Development applications used to require advice from the Independent Planning Commission. That requirement has now been removed for most projects, streamlining the Housing Delivery Authority process.

Public exhibition periods for SSD projects were set at a 28-day minimum. This year, they can be reduced to 14 days for eligible housing proposals.

Before 2025, dual occupancies and terraces were allowed only under limited rezoning or local variations. Now, the Low and Mid-Rise Housing Policy enables a wider range of housing types in identified precincts, improving access and housing supply.

DA forms on the Planning Portal used to include excessive detail and unnecessary fields. These have now been cleaned up and simplified.

Subdivision approvals were previously handled almost exclusively by councils. In 2025, private certifiers have greater authority to assess and approve a wider range of subdivisions and housing types.

Why These Changes Matter

For homeowners and small-scale developers, the 2025 changes mean greater opportunity and less red tape. Dual occupancies, terraces, and other diverse housing types are easier to get approved, and the application process is more straightforward.

For large-scale developers and investors, the Housing Delivery Authority creates a fast and predictable pathway for major residential projects, especially those that meet affordable housing criteria.

Local councils benefit from streamlined forms and reduced administrative burden, while certifiers gain greater flexibility and responsibility in managing approvals.

These changes also align with broader state housing targets and national housing affordability strategies. With faster approvals and greater clarity, the NSW planning system is now more equipped to meet current and future demand.

Final Thoughts

The 2025 reforms to NSW planning are not just administrative updates. They represent a major shift toward greater flexibility, faster housing delivery, and more modern planning pathways.

The Environmental Planning and Assessment Amendment Act, Housing Delivery Authority, and Low and Mid-Rise Housing Policy together reflect a unified approach to tackling the state’s housing challenges.

Whether you’re preparing a Development Application, navigating subdivision requirements, or planning a multi-dwelling project, staying informed about these changes is critical.

If you need help interpreting these reforms or want guidance on your next project, PlanBe Planning is here to support you through the process with local expertise and straightforward advice.