The NSW Government’s announcement of a streamlined planning approval pathway has drawn both praise and critique, reflecting the urgency of addressing what many are calling a housing emergency. The reform, which bypasses local councils for developments worth over $60 million in Sydney and $30 million in regional areas, comes amidst the worst housing crisis in 50 years.

Jennifer Macquarie, Director of the Fountaindale Group, commended the initiative as a necessary response to a broken system. “We are in the middle of the worst housing crisis in 50 years, and a crisis situation requires a radical response,” she said. “The NSW Government is feeling the pressure from so many of its constituents who are under significant housing stress and have almost given up on the idea of home ownership.”

Macquarie highlighted systemic inefficiencies that have plagued housing delivery. “In creating a new approval pathway for significant DAs and rezonings, the NSW Government is acknowledging that the current assessment system is dysfunctional and needs a bypass. While councils can’t be entirely blamed, they are definitely part of the problem.”

Her experience with delays is emblematic of the challenges developers face. “The Fountaindale Group’s three most recent DAs in three different council areas ended up in the Land and Environment Court. All were eventually approved, but the process added two years and an additional $500,000 per project. This is now a very common and frustrating scenario for the sector trying to deliver new housing to the community, so today’s announcement of an alternative, more streamlined system is very welcome.”

Echoing these sentiments, other developers interviewed by The Bugle pointed to the Development Application (DA) process as a significant risk factor. “Reform is long overdue, and the ability to bypass councils for larger projects could streamline timelines significantly,” one developer explained. Another cited a local resident’s experience, saying, “It cost them over $100,000 just to submit a DA for a single house block. That shows why bypassing the current system is necessary.”

However, both Macquarie and other local developers agreed that the effectiveness of the new pathway will depend on its implementation. Macquarie urged for a comprehensive infrastructure plan to accompany faster approvals, ensuring liveability for future residents. Another developer added, “Accelerating approval processes is crucial, but it must be done responsibly by experienced planners. The statistics are stark—400,000 single women in NSW face homelessness if they lose their tenancies. That’s an emergency, not just a crisis.”

Macquarie pointed to under-resourced councils as a key issue. “So many regional councils are under-resourced, both financially and in planning staff, and are unable to assess applications in a reasonable timeframe. There’s also a culture in some councils where the opinion of small community groups is prioritised over the housing needs of the wider community.”

The new pathway also presents opportunities for innovation, particularly in design. One developer noted that outdated Development Control Plans (DCPs) stifle creativity and affordability. “Most DCPs are overly focused on numerical standards rather than the quality-of-life residents seek. For example, terrace homes—an affordable and sustainable option—are often excluded. This reform could enable private sector creativity previously hampered by strict regulations.”

While cautiously optimistic, Macquarie and the developers interviewed by The Bugle agree that the new system must balance speed with responsibility and ensure small to medium developers, who deliver the majority of housing in NSW, are not left behind.

As Macquarie concluded, “We won’t really know how well the new process works until we test it, but for now, I’m very supportive of this initiative.”