NSW Planning System Reforms 2025: What Developers Need to Know

In 2025, the NSW Government introduced a series of major planning and legislative reforms aimed at accelerating housing delivery, improving affordability, strengthening compliance, and modernising development pathways. For developers, builders, and industry professionals, these reforms present both new opportunities and critical responsibilities.

In this article, we break down the most important updates that affect property development in NSW—from fast-tracked approvals and affordable housing compliance to the Housing Delivery Authority (HDA) and upcoming community land law changes commencing 1 July 2025.

1. Streamlined Development Approvals through the Housing Delivery Authority (HDA)

The Housing Delivery Authority (HDA) was established under the Environmental Planning and Assessment Act 1979 to fast-track major housing projects through a dedicated State Significant Development (SSD) pathway. If your project meets certain criteria, it may be eligible for fast-tracked approval via the HDA, bypassing slower local council processes.

Key points:

• Projects declared SSD can now proceed without advice from the Independent Planning Commission (if they include residential accommodation).

• A concurrent rezoning and assessment process is available.

• The HDA prioritises housing completions over approvals, with a focus on infill housing, build-to-rent, and affordable housing.

• As of mid-2025, over 86 SSD proposals have entered the pipeline.

This initiative is part of the NSW Government’s broader commitment to delivering 377,000 new homes by July 2029 under the National Housing Accord.

📌 Want to know if your project qualifies for SSD fast-tracking? Book a free consultation with our team and get your personalised advice in your project!

2. Changes to the Environmental Planning and Assessment Act (EPA Act)

The Environmental Planning and Assessment Amendment Bill 2025, passed in May and assented on 22 May 2025, introduces legal and procedural changes that directly affect how developers seek and modify approvals.

✅ Key changes include:

• Development consent modifications can now be made even if they don’t alter the actual development—resolving legal uncertainty caused by the Buyozo case (Ku-ring-gai Council v Buyozo Pty Ltd [2021] NSWCA 177), which previously restricted condition-only changes.

• Affordable housing contributions can now be mandated by any environmental planning instrument—not just local plans.

• Approvals that conflict with existing concept development consents may now proceed if the original concept consent is surrendered or modified.

• Public exhibition periods for SSD applications can now be reduced to as few as 14 days, down from the previous minimum of 28 days.

These updates are designed to improve efficiency and restore flexibility without compromising assessment integrity.

3. Crackdown on Affordable Housing Misuse

In June 2025, the NSW Government introduced sweeping reforms under the Community Housing Providers (Adoption of National Law) Amendment Bill 2025 to close loopholes in the delivery and oversight of affordable housing.

🏘️ New compliance measures include:

• A public register tracking all affordable housing units, their owners, and managing agents.

• A requirement to appoint a registered Affordable Housing Manager before occupation certificates can be issued.

• Affordable housing requirements must be legally recorded on the property title.

• Fines and enforcement powers for non-compliance, including failing to rent to eligible tenants or overcharging for rent.

Developers receiving planning incentives for affordable housing must now meet strict standards—or risk losing approvals or facing financial penalties.

4. Community Land Law Changes Starting 1 July 2025

From 1 July 2025, community land and strata scheme laws will undergo significant reforms to improve sustainability, governance, accessibility, and legal protections for property owners and residents.

🔍 Key updates:

• Repairs and maintenance can no longer be delayed if safety or access is compromised.

• Annual General Meeting (AGM) agendas must include a review of sustainability initiatives, including energy/water usage.

• Accessibility infrastructure can be approved by majority vote (previously required a special resolution).

• Committee members and chairpersons must meet new standards of conduct, transparency, and fairness.

• Unfair contract terms in supplier and service contracts are banned.

• Utility contracts, especially embedded networks, are subject to new time limits and disclosure rules.

• Developers face penalties of up to $11,000 (plus $220/day) for failing to hold the first AGM or submit required documents on time.

⚖️ These reforms align community land schemes with modern strata law and provide stronger protections for residents, buyers, and investors.

5. Implications for Property Developers in 2025 and Beyond

For OwnerDeveloper clients, these reforms mean it’s more important than ever to stay informed and proactive. Those who adapt early will benefit from faster approvals, improved project certainty, and stronger market positioning in the affordable housing sector.

🔧 Here’s how to prepare:

• Check your project’s eligibility for SSD status through the HDA.

• Review and update your supplier and service contracts to remove unfair terms.

• Ensure your developments align with upcoming accessibility and sustainability requirements.

• Plan and document affordable housing delivery in line with new compliance rules.

• Understand new maintenance and strata responsibilities to mitigate future legal risk.

📈 Want More Planning Insights?

OwnerDeveloper offers tailored planning, development management, and superintendent support services to help navigate these complex reforms.

📞 Book a strategy consultation with our planning and feasibility experts.

Conclusion

The 2025 NSW planning reforms signal a decisive shift in how housing development is approved, delivered, and managed. With faster SSD approvals, tougher rules on affordable housing, and stricter community land governance, developers need to stay agile and compliant.

At OwnerDeveloper, we help you cut through the complexity and seize new opportunities with confidence.

Keywords: NSW planning reforms 2025, Housing Delivery Authority, Environmental Planning and Assessment Act, community land law changes, affordable housing NSW, SSD approvals NSW