How New South Wales and Victoria’s planning reforms stack up
Governments – Federal and State - at all levels are pursuing reforms to boost housing supply, improve affordability, and deliver homes in the right locations. Over the past year, Victoria and New South Wales have introduced significant planning reforms to this end.
This commentary builds on our 2024 paper on national planning reform, assessed through the lens of housing, productivity, and environment. Using these themes, we have examined how recent and upcoming changes are likely to shape these planning systems and highlights what each state can learn from the other to strengthen outcomes into 2026.
We consider these changes through:
Housing
- Will this reform increase housing supply or diversity?
- Does it speed up approvals or remove barriers?
- Does it improve affordability or access to well-located homes?
Productivity
- Will it reduce time, cost, complexity for proponents or councils?
- Does it increase certainty for investment?
- Does it support better infrastructure alignment?
Environment
- Does it protect environmental values, avoid risks, or improve climate resilience?
- Does it drive more sustainable development patterns (e.g., infill over sprawl)?
- Does it have clear mitigation for environmental impacts?
Unpacking the reforms
| 2025 Forecast | NSW Progress | VIC Progress Report | Opportunities |
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Transit Oriented Development Transit or Transport Oriented Development (TOD) has experienced renewed government policy focus driven by national ambitions to increase well-located homes. In 2024 and 2025, policy agendas accelerated, with both states intensifying efforts to capitalise on major public infrastructure investments. TOD precincts remained a key focus of government planning and housing policies. |
The NSW Government committed to putting new housing where transport access is strongest, through the Housing SEPP introducing:
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Across 2025, the Victorian Government continued at pace on the Activity Centre Program which focuses on:
Precinct planning surrounding the six new Suburban Rail Loop (SRL) Stations is currently being considered by an Advisory Committee. Planning controls are likely to be gazetted before the 2026 election in November – supporting development opportunities ahead of the projected 2035 opening. Greater standardisation of design requirements and deemed-to-comply provisions seek to increase investor certainty in both core areas and surrounding residential land and reduce timeframes for delivery. |
NSW and Victoria have simultaneously undertaken the most ambitious TOD reforms in decades, adopting a YIMBY approach and opening substantial new capacity for mid-rise housing and precinct-scale density around transport nodes. These reforms are structurally significant: they shift the conversation from localised upzoning toward state-led intervention, standardised built-form controls and faster assessment pathways. This signals both NSW and Victoria are directly responding to the Housing Accord. Opportunity: The success of TOD reforms will ultimately be measured by delivery, not zoning. The opportunities will be successful where realised through alignment with infrastructure delivery (both physical and social). This needs to be sequenced with growth, embed clearer, consistent affordable housing requirements; monitor market take-up to identify where feasibility constraints persist; and codify design standards to support fast approvals without compromising amenity. Other states are watching closely — NSW and Victoria can set a national template for strategically led urban density.
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Streamlining planning assessments have been crucial for delivering on the Accord since its signing in 2022. Efficient planning systems are universally recognised as essential to meet targets within the 2029 timeframe to 2029. Simplifying and expediting these processes helps avoid delays, reduce costs, and seize economic opportunities. Key measures include adopting digital tools for faster application reviews, establishing guidelines for consistent decision-making, and fostering collaboration among government agencies, developers, and communities. These efforts create a more transparent, predictable, and efficient planning system. This focus is expected to continue throughout 2025, with ongoing efforts to reduce delays and deliver on housing targets and approvals.
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Recent planning reforms are set to speed up housing and infrastructure delivery by cutting duplication in assessments.
The removal of Regional Panels is pitched to speed up assessments — but will it? Projects once deemed regionally significant (generally over $30M) will now go to local panels for determination. The real test will be whether local panels have the capacity and processes to deliver faster, high‑quality decisions. Other 2025 reforms target consistency, flexibility and modernisation, including a single statewide community participation plan, simplified consultation, powers to address dormant consents, faster reviews and appeals, risk‑based Part 5 assessments, and updated bushfire provisions. |
In Victoria, 2025 has been one of the most active periods of planning reform in recent memory, with a suite of changes aimed at improving housing supply. The “theme” of these reforms was to streamline assessments through the application of standards, reducing subjective assessments and third party review rights across several different pathways. Similar code-assess pathways and exemptions from objector reviews are prevalent in other States, with Victoria now following suit. These include:
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Both NSW and Victoria are reshaping assessment systems around predictability, speed, and proportionality. These follow successful models in QLD, utilising deemed-to-comply standards, shorter referral timeframes, and clearer rules for modifications and appeals to streamline assessment and delivery of low-medium impact development (think low and mid rise homes and additions/alterations). Together, these changes signal a shift from bespoke assessments towards a more prescriptive system. Opportunity: Streamlining is only effective if the system behind it is capable. The opportunity lies in building resourcing capacity in councils and state agency bodies, building referral agency efficiencies, digital tracking systems, shared assessment standards, and enabling faster conflict resolution early in the development process. If implemented well, these reforms could materially reduce holding costs, encourage more diverse housing typologies, and re-set investor confidence in both states — but the risk is that under-resourced agencies slow the system despite legislative improvements. We also recognise challenges with project feasibility that will affect the short term ability to deliver outcomes (in some locations more than others). |
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Greenfield Precincts While focus for the last number of years has been on infill precincts, some jurisdictions have in turn, been pulling back from driving delivery of greenfield precincts. 2024 and 2025 has seen some return to greenfield precincts recognising the housing crisis cannot be resolved through a single approach. Housing choice is a key issue, and maintaining a steady supply of greenfield developments is essential to ensure adequate options are available. |
The draft Sydney Plan, released in December 2025 identifies the replacement of the Metropolitan Rural Area (MRA) with a new urban footprint, limiting development of Sydney’s urban fringe. The strategy’s focus on orderly, infrastructure-led growth seeks to make full use of existing capacity within the urban footprint before considering expansion. This approach supports sustainability objectives, though contingency measures may be required if environmental or other constraints limit the ability to meet demand. As this is draft policy, we will continue to monitor, particularly if changes are made to the urban footprint following the review of the new strategy by Councils and other key stakeholders. |
Victoria has reemphasised the importance of greenfield developments in equitable housing supply and affordability. State Government is addressing both the long-term plan and immediate priorities. 10-year greenfield plan
Greenfield concierge service.
Both of these initiatives are still in their infancy so impacts remain to be seen. |
Victoria is moving decisively to protect land supply and re-balance the housing mix by releasing greenfield land through a sequenced, transparent ten-year plan. NSW is signalling a shift away from its “up not out” mantra, but has yet to articulate how greenfield supply will be managed, serviced, or prioritised. In both States, greenfield is increasingly recognised as essential for choice, affordability and market diversity, but infrastructure is lagging behind policy intent. Notwithstanding, identified areas continue to be constrained by environmental hazards (e.g. flooding and bushfire risk), requiring a macro response to ensure coordinated roll-out of housing in these areas. Opportunity: The most significant opportunity is to address the true bottlenecks: utility upgrades, road capacity, drainage, and agency resourcing. Both states could adopt structured sequencing frameworks tied to infrastructure commitments, similar to Victoria’s approach, but with clearer performance triggers and whole-of-government alignment. |
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Social and Affordable Housing Social and affordable housing will remain a core priority in 2025, with governments pursuing incentives, streamlined approvals and partnerships to boost supply, including key worker housing. Inclusionary zoning and other planning mechanisms are expected to expand, to ensure new developments include housing for lower‑income households. Policy efforts will focus on quality and sustainability, with energy‑efficient design, strong community amenities and good transport access central to new projects. These initiatives reflect a continued commitment to addressing housing affordability and supporting vulnerable communities. |
Legislative and Policy Change NSW is strengthening its commitment to affordable housing supply through legislative and policy changes. The EP&A Act now includes a specific objective to promote the delivery and maintenance of housing, including affordable housing. The Housing SEPP introduces new requirements for affordable housing in Transit Oriented Development precincts, dedicated in perpetuity, and offers height and floor space bonuses for infill projects near jobs or mixed‑use zones where at least 10% affordable rental housing is provided. Delivery The Housing Delivery Authority further embeds affordability by requiring affordable housing provision as part of a declaration, for either 15 years or in perpetuity. Together, these changes signal a more consistent and integrated approach to delivering affordable housing across NSW. |
A number of new initiatives have been introduced in Victoria to increase social and affordable housing supply, however, there have been limited legislative and policy mechanisms introduced. Significant announcements were made in September 2023 and in 2020 as part of the $5.3 billion Big Housing Build investment. Programs such as the Ground Lease Model and the High Rise Redevelopment Program have continued with vigour through 2025. Announcements this year have been of a less significant scale and we look forward to the continued conversation in Victoria. 2025 Programs include:
Policy initiatives to drive affordable housing should work together with funding models (such as HAFF) and in collaboration with Community Housing Providers. |
Both States are embedding affordable housing more consistently in rezonings and uplift scenarios, but requirements remain uneven and, in many cases, discretionary. NSW has taken stronger steps within TOD precincts, but operational detail and delivery mechanisms remain unclear. Victoria has a growing ecosystem of uplift-based requirements, but no whole-of-system inclusionary housing model. Opportunity: There is a strong opportunity to leverage new legislative requirements, planning reforms and delivery models to embed affordable housing more consistently across major developments and urban renewal projects. NSW’s clearer obligations within TOD precincts, combined with Victoria’s uplift‑based approaches and large‑scale renewal programs, create scope to create housing frameworks that are predictable, transparent and deliverable. There is an opportunity to strengthen delivery of affordable housing through mechanisms such as density uplift, linkages with funding programs such as HAFF and connection with community housing providers. |
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Strategic Planning Strategic planning is vital for managing growth and ensuring sustainable development. In 2025, states and territories are expected to strengthen their frameworks, with major revisions in Victoria and NSW focusing on directing growth to key transport hubs and centres, aligned with infrastructure delivery. |
In December 2025, DPHI released the draft Sydney Plan, Statewide Policy for Industrial Lands, and a discussion paper outlining a new approach to strategic planning. This introduces a new three-tiered strategic planning framework for the roll-out of new region plans and seven key priorities to guide growth within the State. This will be governed by a new State Land Use Plan, the first of it’s kind in NSW. The draft Sydney Plan, the first in the new generation of plans, sets the direction for delivery of housing, centres, industrial, and resilience planning across Greater Sydney. The plan is supplemented with additional guidance for specific planning matters, being flood-prone land, managing development on the urban fringe, and jobs and productivity. The new framework is supported by a Statewide Policy for Industrial Lands which aims to categorise NSW’s industrial lands into State, Regional and Local to inform where industrial land should be prioritised and managed. |
The Plan for Victoria (2025) provides integrated planning for the whole State. Unfortunately, this is less robust than much of the historic strategic planning for Metropolitan Melbourne. The ambition for strategic planning appears to be there, but the substance needs more focus. It however does set housing targets for each municipality which have been translated into the local planning schemes. DTP through the Development Facilitation Program are offering to assist proponents in bringing forward strategic planning for key strategic sites (Strategic Sites EOI) which align with government priorities for housing and employment generation. |
NSW has released its significantly revised draft regional planning framework that will inform housing delivery, centres policy and industrial land strategy. Victoria now has a whole-of-state plan, but its strategic depth does not reach that of previous metropolitan frameworks and communities remain sceptical of the local relevance of Activity Centre plans. A strategic-led planning system is wholly supported. These new planning frameworks are in their infancy and their influence will be felt over the next 5-10 year period. Opportunity: The combined opportunity is to strengthen the clarity, authority and spatial specificity of strategic plans. This means clear growth hierarchies, transparent housing targets, binding infrastructure sequencing, realistic industrial land frameworks, and stronger links between strategic plans and statutory outcomes. There is also an opportunity to ensure strategic plans genuinely drive rezoning, infrastructure priorities and investment decisions. |
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Medium impact |
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Infrastructure Coordination Unlocking government land is a growing strategy to address housing shortages, with jurisdictions auditing portfolios and fast-tracking planning changes to release underutilised sites, particularly for affordable housing. This includes well-located land at state, local and federal levels. In 2025, a more coordinated approach will combine feasibility studies, community input and partnerships with private and community housing providers to quickly deliver housing that meets diverse needs. |
Housing & Productivity Contributions (HPCs) have been introduced as new regional levies funding roads, open space, transport near hubs, and biodiversity outcomes. HPCs will replace State Infrastructure Contributions over time. These sit alongside local contributions (s7.11 / s7.12). Local or State Voluntary Planning Agreements (VPAs) are still able to be negotiated, or WIK agreements for delivery of public infrastructure by private developers. Infrastructure NSW is also taking a stronger role in identifying and delivering infrastructure across metropolitan Sydney. The Urban Development Program (UDP), a longstanding mechanism in Victoria has been introduced to track and coordinate the supply of land for housing and employment, ensuring it aligns with infrastructure planning and delivery providing a clear picture of development pipelines, identifying constraints, and helping governments, industry and communities plan for growth in a timely and efficient way. |
The Planning Amendment (Better Decisions Faster) Bill 2025 will widen where developer-funded levies can be spent, enabling selected projects outside the immediate collection areas if they address the needs of growth-area residents. The draft clarifies that infrastructure funded through Infrastructure Contributions Plans and the Growth Areas Infrastructure Contribution can be delivered beyond collection or GAIC boundaries, provided the investments serve those communities’ requirements. A new infrastructure contributions scheme has also been announced for Activity Centres – Housing Choice and Stations that will require developers to make a consistent contribution per dwelling to fund local councils and state government infrastructure projects. Government is also working on a statewide developer contribution scheme which is expected in 2027. Given the current high costs and existing taxes to deliver housing there are concerns that these new contributions will simply make housing more expensive and impact feasibility. |
Both States are reforming contributions systems to provide more flexibility and consistency, but infrastructure delivery, particularly utilities, remains the dominant barrier to housing supply. Agency resourcing, utility backlogs, and slow approvals for enabling works continue to delay projects despite improved statutory frameworks. New levies also risk further impacting on project viability and delivery of new homes. Opportunity: The opportunity lies in linking contributions reform with real delivery capacity. Housing & Productivity Contributions, more flexible levy spending powers, and established tools like Urban Development Programs can be used to target funding where it will unlock the most housing and employment land. |
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Medium impact |
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Unlocking Government Land Unlocking government land is becoming a key strategy in addressing housing shortages, with many jurisdictions auditing their property portfolios and fast-tracking zoning and planning changes. The focus is on releasing underutilised or surplus land for residential development, particularly to boost the supply of affordable housing. This includes state, local and Federal Government land, often in well-located areas suitable for housing. Throughout 2025, governments are expected to take a more coordinated approach, combining feasibility studies, community consultation and innovative planning mechanisms. Partnerships with private developers and community housing providers will be central to ensuring released land is quickly transformed into viable housing projects that meet diverse community needs. |
Across Australia, Governments are auditing their property portfolios to identify underutilised or surplus land that can be rezoned and fast tracked for residential development. This includes state, local, and federal land — with the Department of Defence reviewing surplus sites for potential sale. In NSW, an audit of surplus government land began in May 2023, led by Property and Development NSW with the Cabinet Office. Homes NSW and Landcom have first choice of suitable sites to deliver social, affordable, essential worker, and market housing. The audit is ongoing, with the aim of quickly moving identified sites into the development pipeline. |
In addition to the Ground Lease Model and the High Rise Redevelopment Program, the Government announcement the Small Sites program in 2024. Development Victoria have offered additional underutilised government land in 2025 for partnership with developers. Following 4x pilot sites in 2024, an additional 10 sites have been identified and are currently open for EOI. Appointments on these sites are still in progress. Following the October 2024 announcement, Development Victoria are also working to appoint a developer to deliver the large government-owned Arden Precinct which will include a substantial number of new homes.
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NSW is progressing a large-scale, centrally coordinated audit with clearer pathways for activation, whereas Victoria’s small-sites program has struggled to achieve volume or maintain momentum. Both States recognise government land as a critical lever for affordable and well-located housing, but neither yet has a comprehensive pipeline approach. Opportunity: Continue to review existing government land assets and opportunities for integrated, well-located development alongside identified precincts for renewal. There is also upside in standardising commercial terms, accelerating masterplanning, and bringing forward larger catalytic sites rather than focusing primarily on small, fragmented parcels. |
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