Cutting Through the Red Tape: What Developers Need to Know in 2025

In Australia’s race to build 1.2 million new homes by 2029, one phrase keeps coming up: red tape.

It’s the unseen handbrake on housing supply. It delays projects, inflates costs, frustrates trades—and drives investors to walk away. But what exactly is red tape? Where does it come from? And how are state and federal governments finally starting to cut through it?

At OwnerDeveloper, we work daily with homeowners, investors and developers who feel stuck in the system. Here’s our deep dive into the problem—and the practical reforms already starting to make a difference.

🧾 What Is Red Tape?

Red tape refers to excessive, outdated or unnecessary regulation that creates financial or time costs—without delivering meaningful benefit. It’s not about removing rules that protect safety or fairness. It’s about weeding out:

• Duplicated approval processes

• Outdated forms or policies

• Overly rigid licensing

• Delays in permit approvals

• Contradictory regulations across agencies

Regulations that once served a purpose can evolve into red tape when they’re no longer fit for purpose. In the building and property industry, the cost of these inefficiencies is huge.

📉 The Real Cost of Red Tape in Construction

Let’s break it down:

• The Housing Industry Association (HIA) estimates that nearly half the cost of a new home comes from taxes, fees, and regulation.

• A 2020 Canadian study showed red tape made up 28% of all regulatory costs for small businesses.

• In the U.S., regulatory costs reach $364 billion annually—1.5% of GDP.

In Australia, red tape adds months to build times and thousands to project budgets. It increases developer risk and puts pressure on project viability. It’s especially harmful to small developers, owner-builders, and homeowners managing their own builds.

🏠 Red Tape in Practice: What It Looks Like

• You submit three identical documents to three different agencies.

• A council delays a simple plumbing approval, even though it meets National Construction Code standards.

• You can’t begin excavation until you get a temporary groundwater licence, which takes 6–12 weeks to approve.

• You need dual land valuations to satisfy both the financial report and the NSW Government Property Register.

All of these examples are real, and all are under review thanks to new reforms—some of which are already making a measurable impact.

🏛️ Red Tape Reform in Action (2024–2025)

✅ NSW: Legislative Reforms to PDNSW Act

The Property and Development NSW Act 2006 was updated in May 2024 to streamline processes. Key changes include:

• Clarifying PDNSW’s ability to acquire, lease, and manage land assets

• Eliminating the need for two separate land valuations

• Allowing faster re-use of government-owned land for housing

• Reducing administrative duplication in acquisition processes

“We’ve passed this legislation to improve PDNSW’s operations, cut red tape, and ensure seamless service delivery.”

— Minister for Lands and Property, Steve Kamper

✅ NSW: Groundwater Licence Exemption

In June 2025, the NSW Government introduced temporary exemptions for groundwater dewatering licences. This removes one of the biggest blockers for apartment and infrastructure projects in coastal areas.

• Supports the delivery of 377,000 homes by 2029

• Speeds up construction starts

• Reduces cost blowouts and delays

“This reform is practical, timely, and reduces one of the most frustrating delays in the housing delivery process.”

— Katie Stevenson, Property Council NSW

💡 Why Red Tape Reduction Matters for Developers

Whether you’re a first-time investor, a duplex builder, or a mid-tier developer:

• Red tape increases holding costs (especially under rising interest rates)

• It delays ROI and slows reinvestment

• It complicates joint ventures, planning approvals, and feasibility forecasting

• It undermines confidence—and confidence is key in housing supply delivery

That’s why reforms like these aren’t just administrative—they’re essential.

🧠 Beyond Red Tape: Watch Out for “Beige Tape”

In regulatory circles, a new term has emerged: beige tape.

• Red tape = unnecessary regulation

• Beige tape = poor implementation of otherwise useful rules

For example, if five agencies demand the same data in five formats—that’s not bad regulation. That’s bad coordination. At OwnerDeveloper, we help clients navigate both.

🔧 How OwnerDeveloper Helps Cut Through the Bureaucracy

From experience, we know that compliance doesn’t have to be confusing—but it does need expert strategy.

When you work with us, we help you:

• Navigate planning and zoning rules under the Housing Diversity Code

• Fast-track CDC or DA applications with complete documentation

• Understand feasibility in red tape-heavy zones

• Manage site approvals, environmental reports, and construction certifications

• Avoid unnecessary costs and delays through smart planning and expert guidance

We act as your partner through the maze—so you can focus on building.

🏁 Final Word: Reform Is Happening—But It’s Not Done Yet

Red tape isn’t going to vanish overnight. But 2024–25 has seen encouraging signs that governments are finally listening to industry voices.

As the Property Council, HIA, and countless developers have said: removing red tape is not just about efficiency. It’s about affordability, livability, and housing equity.

At OwnerDeveloper, we’ll continue to advocate for smarter regulation—and support our clients in delivering great housing outcomes, without unnecessary delays.

📩 Need help navigating red tape in your next build?

Book a free strategy call with our team or download our Property Development Due Diligence & Project Management Made Simple to learn how delays and approvals could affect your timeline.