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Research Paper 4, 2024

Research Paper 4, 2024

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ How the NSW planning system works







Research P​aper 4, 2024​
Damian Gilyana, BCityPlan (Hons)
Research Analyst, Parliamentary Research Service​

Daniel Montoya, BEnvSc (Hons), PhD
Research Team Leader, Parliamentary Research Service​​

The primary enabling legislation of the planning system in NSW is the Environmental Planning and Assessment Act 1979​ (the EP&A Act). While broad, the planning system in NSW can be divided into two broad areas: land use planning, and development control.​

The paper provides information on the NSW planning system that is current as at May 2024, and enables easier navigation across the system’s operational complexity, including through the use of diagrams (see below​).

Land use planning and development control are 2 of the 7 key components of the NSW planning system explained in this paper. The other 5 components are the objects of the EP&A Act, planning authorities, infrastructure funding, community participation, and the Land and Environment Court.

This paper updates a previous 2019 paper on the NSW planning system by the NSW Parliamentary Research Service explaining how the NSW planning system works.

​​​The primary planning legislation in NSW is the Environmental Planning and Assessment Act 1979 (the EP&A Act).

The EP&A Act is supported in practice by the rules and procedures of the EP&A Regulations 2021.​

SYSTEM for managing land use

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​​​​​​​​​O​bjects of the EP&A Act (summarised)​

  • ​​​Good ​social and economic land us​​es
  • ​​Affordable housing
  • Ecologically sustainable development
​​
  • ​​Good design, amenity, and safety​
  • Community input in decision-making

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​Land use planning​

  • Making and applying planning instruments, such as SEPPs, LEPs, DCPs, and other relevant land use strategies
  • SEPPs and LEPs are NSW legislation. A planning proposal, commonly a rezoning proposal, seeks to amend an LEP​
  • Broader study, consultation and collaboration can be undertaken to support area-based land use planning

​Development control​​

  • There are 8 planning approval pathways, 5 of which require development consent from a planning authority
  • A level of environmental impact assessment is usually required to inform determinations
  • Building and subdivision certification can assist with compliance and certainty of development outcomes

​Planning authorities​

  • Local councils for most local development
  • NSW Government for major projects (Department of Planning, Housing and Infrastructure (DPHI))
  • For contentious or sensitive developments, referrals to the Independent Planning Commission, relevant Sydney District or Regional Planning panel, or local planning panel

​Infrastructure funding

  • A mandated development contributions system that requires local and state contributions from developers to fund infrastructure
  • A range of infrastructure funding initiatives are also administered by DPHI

​Land and environment court

  • A ‘one stop shop’ for environmental, planning and land matters since September 1980
  • Jurisdiction over planning matters like dissatisfaction with the outcome of a development application determination
​Community participation
  • Opportunities for community involvement are available under the EP&A Act
  • This includes making submissions to draft strategic plans or development applications, attending public hearings, or sitting on local panels

Read more in the research paper: How the NSW pl​anning system works (PDF)​