NSW planning reforms: what landowners and developers need to know from March 2026

The NSW Government has taken another significant step in reshaping the planning system, with further provisions of the Environmental Planning and Assessment Amendment (Planning System Reforms) Act 2025 commencing on 21 March 2026. These changes are designed to streamline assessment pathways, improve certainty and reduce unnecessary regulatory burden for development proponents.

A new “targeted assessment” pathway

A new targeted assessment development pathway has been introduced, allowing certain classes of development to avoid a full merits assessment where key impacts have already been addressed upfront. Eligibility will be determined through future State Environmental Planning Policies (SEPPs), which must be publicly exhibited before taking effect.

While the pathway will not have immediate practical application until a SEPP is made, it signals a shift towards faster and more stream-lined approvals for well understood development types and creates opportunities for proponents to engage early in strategic planning processes.

Faster and clearer modification approvals

Important changes have been made to modification applications. Minor modifications with no environmental impact can now dealt with under section 4.55(1) of the* Environmental Planning and Assessment Act 1979* (EP&A Act), supported by a new 14-day statutory determination period. If the consent authority does not determine the application within that period, the modification cannot be refused, and any conditions imposed must reflect the modification sought. This amendment will assist to reduce minor design or operational changes becoming major approval bottlenecks to avoid lengthy construction delays.

More broadly, consent authorities are now required to consider the matters in section 4.15 of the EP&A Act only to the extent they are relevant to the modification, providing greater clarity and reducing the scope for the reassessment of settled issues.

A more proportionate environmental assessment framework

The reforms embed a risk-based approach to environmental assessment undertaken by public authorities under Division 5.1 of the EP&A Act. Determining authorities are no longer required to consider environmental impacts “to the fullest extent possible”, but instead in a manner proportionate to the nature and risk of the activity. This will assist in speeding up the approval process for minor activities and in turn, speeding up the delivery of infrastructure and services.

For major projects, the content requirements for environmental impact statements have also been streamlined, removing the need to assess feasible alternatives and narrowing the focus to significant environmental impacts and mitigation measures. This should translate into reduced assessment costs and shorter documentation timelines.

Expanded review and appeal rights

Applicants now have up to six months to request a review of a development or modification decision, with no deadline for determination.

Importantly, the appeal clock is paused while a review is underway, preserving an applicant's options. Applicants can also elect for reviews to be determined by a local planning panel where applicable.

Appeal rights for deemed refusals have been expanded, allowing appeals to be lodged at any time before determination.

What this means for proponents

Together, these reforms favour early issue resolution, faster approvals and greater procedural certainty. Landowners and developers should review their current and upcoming projects to ensure they are positioned to take advantage of the new pathways and timeframes as they come into effect.

If you would like advice on how these reforms may impact upon your development project, reach out to our Environment & Planning team.