NSW government urged to expand use of approval process to tackle delays and boost supply
The Housing Industry Association (HIA) has reiterated its support for complying development as a way to speed up housing approvals and lower associated costs in New South Wales.
HIA NSW executive director Brad Armitage (pictured above) said the process offers a more efficient alternative to traditional council development applications (DAs), helping to reduce both delays and expenses in delivering new homes.
Complying development is a streamlined planning and building approval process that allows certain types of housing to bypass the standard DA route. It applies to developments that meet set criteria under state environmental planning policies.
According to Armitage, regulatory expenses, taxes and fees now make up a significant portion of the overall price of new homes in Sydney.
“Out of the total cost of a house and land package in Sydney, $576,000 is made up taxes, fees and regulatory costs,” he said. “One of the biggest portions of that is the cost of delays in getting an approval to build. Complying development helps to reduce that timeframe and in turn reduces the cost of delivering a home by at least $15,000.”
He added that a new house can typically receive approval under complying development in approximately 24 days, compared with 87 days for those going through council DAs. For other housing types such as granny flats and townhouses, he noted that the difference in processing times is even more significant.
The latest figures from the Australian Bureau of Statistics show a marginal decline in total dwelling approvals in February, falling 0.3% to 16,606.
“Many government agencies and councils have a dislike for complying development, which can only be described as NIMBYism,” Armitage said.
“We call on premier Minns to set a target for complying development that ensures we see an increase in both the number of houses, and housing types, that can be built under the complying development approval pathway. A target makes councils and NSW government agencies accountable and sends a clear message that they need to do more to streamline the approvals process.”
He stressed that the building industry is ready to respond to housing demand but requires planning reforms to enable a quicker start to projects.
“Industry stands ready to start building the homes we need to address the housing supply shortages,” Armitage said. “However, we need to make the process of getting planning approvals quicker and easier so we can get on with the job of getting keys in doors.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
