NSW planning reforms bring deemed approval, tighter deadlines and increased pressure

The second tranche of NSW planning law reforms commenced on 21 March 2026 and are already changing how councils manage development assessment. 

This second tranche of reforms place emphasis on councils and consent authorities to provide timely determinations, identify issues with applications and to provide clear communication with applicants.

It is important for councils to understand the newly imposed timeframes for determinations, reviews and appeal processes, particularly in light of the new deemed approval pathway available for certain ‘lowrisk’ developments.

For councils and other consent authorities, the reforms compress timeframes for certain modification applications by introducing a 14-day determination period and a new deemed approval pathway, and extend the window in which applicants can seek reviews and commence appeals. The combined effect is greater resourcing pressure through the tighter timeframes and the risk of a deemed approval if an application is not determined quickly.

Details of the changes

These changes are delivered through the Environmental Planning and Assessment (Planning System Reforms) Act 2025 (Planning Reforms Act), which amends the Environmental Planning and Assessment Act1979 (EPA Act) and the Environmental Planning and Assessment Regulation 2021 (EPA Regulation). 

The Planning Reforms Act follows earlier reforms focused on amendments to the State Environmental Planning Policy (Housing) 2021 (see our article Low and Mid-Rise Housing Policy – Stage 2 is here!).

The first tranche focused on updated EPA Act objects, legislative enshrinement of the Housing Delivery Authority, the introduction of the Development Coordination Authority and the transfer of certain roles from Regional Planning Panels to councils and local planning panels (see our article Major NSW Planning Reforms Proposed in 2025 Bill for more detail).

This second tranche is aimed at streamlining and accelerating decision-making across the NSW planning system. For councils, the headline issues are shorter assessment periods, new pathways for lowrisk development (particularly minor modifications) and a stronger emphasis on early identification of pathway/validity issues to avoid deemed approvals.

The second tranche of the Planning Reforms Act makes the following key changes to the EPA Act and EPA Regulations:

• introduction of other new development pathways to promote more streamlined and timely assessment processes, with a particular focus on ‘low-risk’ development including minor modifications to existing development applications

• the introduction of a 14-day determination period and deemed approval

• amendments to process and timeframes for reviews and appeals changes to Part 5 of the EPA Act including that determination authorities are no longer required to take into account all matters affecting or likely to affect the environment ‘to the fullest extent’

• streamlined Community Participation Plan to provide consistent exhibition and consultation requirements

• introduction of targeted assessment pathways to allow certain projects which address merit issues and impacts upfront to bypass a full merit assessment.

The key amendments and expected impacts on councils are outlined below.

Section 4.55(1) modification applications - new scope and deemed approval timeframe

One of the most significant changes introduced by the Planning Reforms Act for councils is the increased scope and amendments to the operation of section 4.55 of the EPA Act.

Section 4.55, as amended, applies as follows:

• 4.55(1) applies to modification applications for minor errors or no environmental impact

• 4.55(1A) applies to modification applications with minimal environmental impact

• 4.55(2) applies to all other modification applications.

The most significant amendments relate to section 4.55(1), which has been revised to accelerate decision making for applications involving minor modifications to existing development approvals. The amendments are intended to promote more efficient use of section4.55(1) in dealing with such modifications.

• This intention is reflected in the following amendments to section 4.55(1) which now provides that:

• it applies only to modification applications that do not have an environmental impact

• applications are subject to a 14-day determination period

• applications are deemed approved if no determination is made within that 14-day period

• notification of applications is not required.

These changes apply to any modification applications made under section 4.55(1) lodged from 21 March 2026 onwards. 

Councils should expect a shift in the proportion of modification applications being lodged under section 4.55(1), rather than section 4.55(1A), as applicants are likely to seek to take advantage of the deemed approval pathway. Several of our council clients have already reported a notable increase in the number of applications being lodged under section 4.55(1). 

The introduction of a 14-day determination timeframe is intended to facilitate a faster assessment process for low risk applications. However, while the section 4.55(1) pathway is likely to be attractive to applicants, it will place increased pressure on councils to assess and respond to these applications within a significantly shorter timeframe.

Councils will need to carefully review applications lodged under section 4.55(1) to ensure that they have been validly made before the 14-day determination period expires and the application is deemed to be approved. In particular, it is critical that councils consider whether the proposed modification will result in no environmental impact. 

Where an application does not satisfy the requirements of section 4.55(1), councils should refuse the application and provide feedback to the applicant regarding the appropriate application pathway, which may instead be section 4.55(1A) or section 4.55(2).

Applications made under section 4.55(1) may still require referrals. In such circumstances, it will be
the responsibility of the Development Coordination Authority to ensure that referral responses are obtained in a timely manner, enabling councils to consider those responses before the 14-day determination period lapses.

Although councils may request additional information from applicants, applications made under section 4.55(1) are not subject to any “stop the clock” provisions. If further information is required and is critical to the assessment of the application, the appropriate course will be to refuse the application on the basis that insufficient information has been provided.

Notably, determinations made in respect of section 4.55(1) applications are not subject to a right of appeal. However, where a council elects to refuse an application under section 4.55(1), reasons should be clearly articulated to assist the applicant in understanding the refusal and addressing any deficiencies prior to re lodging the application.

Finally, it is noted that minor modifications to development consents granted by the Court continue to be dealt with under the section 4.56 pathway. Conditions of consent may also be imposed on applications made under section 4.55(1); however, any such conditions must be consistent with the modification sought and must not defeat the purpose of the application.

Reviews and appeals - expanded timeframes

Amendments have also been made to the review and appeal processes, with the aim of providing applicants with greater flexibility, as well as improved clarity and consistency between the review and appeal pathways.

Key amendments to Divisions 8.2 and 8.3 of the EPA Act include the following:

• applicants now have six months to apply for a review of a determination;

• there is no longer a prescribed timeframe for a review to be completed (previously, reviews were required to be finalised within six months of the determination date);

• applicants may elect for a review to be determined by a local planning panel (where constituted), rather than by a more senior officer of the relevant council;

• applicants may commence deemed refusal appeal proceedings in the Land and Environment Court (LEC) in respect of a development application or modification application at any time up until determination; and 

• appeal proceedings in the LEC can no longer be commenced while a review is underway. Instead,
  a “stop the clock” mechanism applies to the six month appeal period during the review process.

Section 244 of the EPA Regulation has also been amended to allow an applicant to seek a review of a
modification application up to six months after the date of determination.

Any development applications or modification applications that have not yet been determined within the applicable assessment period may be appealed as deemed refusals under these amended provisions, even where deemed refusal appeal rights would have otherwise expired under the former regime.

As determinations are now generally subject to longer review and appeal periods, councils should exercise care to ensure that determinations and reviews are completed within the prescribed timeframes. Failure to do so may result in an increase in LEC appeals, particularly in relation to deemed refusals.

Environmental Impact Statements - risk-based assessment

Amendments to Part 5 of the EPA Act have been made to change the focus of matters affecting or likely to affect the environment. The intention is to guide determination authorities to conduct a more proportionate and risk-based approach, having greater regard to the nature and risk of developments and activities.

Amendments have been made to section 192 of the EPA Act including that environmental impact assessments no longer need to provide an analysis of feasible alternatives to the development or activity, and only an analysis of the significant likely impacts is required.

Statewide Community Participation Plan

The NSW Government proposes to introduce a single Statewide Community Participation Plan to apply consistently across the State and be used by all planning and determination authorities.

At present, there are more than 100 community participation plans operating across NSW. The introduction of a single plan is intended to provide greater uniformity and certainty for authorities, applicants and communities in relation to planning decisions and processes.

Councils will not be precluded from tailoring their community participation practices through additional engagement strategies to reflect local community needs. Rather, the Statewide Community Participation Plan is intended to establish a consistent baseline of minimum requirements, including:

• a minimum 60 day consultation period for State strategic planning initiatives, such as Regional and State Plans

• a standard seven day notice period to neighbours prior to the commencement of works under a Complying Development Certificate

• standardisation of the categories of development applications that require public exhibition.

A draft Statewide Community Participation Plan was recently on public exhibition, with submissions closing on 3 June 2026.

Targeted assessment - watch this space

A newly targeted assessment pathway has been introduced for certain types of development where key issues and impacts can be readily identified. 

The purpose of this pathway is to capture development that does not meet the criteria for complying development, but also does not warrant the full development application assessment process. It is intended to streamline approvals and reduce assessment timeframes for certain low risk developments. New sections 4.15(1C) and 4.15(1D) of the EPA Act prescribe a limited set of matters for consideration when assessing a development application under the targeted assessment pathway.

The categories of development eligible for targeted assessment will be specified in a State Environmental Planning Policy. At this stage, no development types have been declared. However, it is anticipated that complex developments with significant environmental impacts will be excluded from this pathway.

The NSW Government has indicated that a discussion paper outlining the targeted assessment pathway in further detail will be released in the coming months, and councils will be invited to participate in the consultation process.

What should councils do? Practical steps

1. Review section 4.55 modifications: confirm the modification application has lodged correctly (4.55(1) vs 4.55(1A)/(2)), check completeness, and consider whether the application has an“environmental impact”

2. Determine within the 14-day deadline: refuse early when you must

3. Prepare for increased reviews and appeals: expect more review requests anddeemed refusal appeals

Given the potential benefits available to applicants from these amendments, it is crucial for consent authorities to conduct effective preliminary reviews of development and modification applications to ensure that they have been made correctly under the appropriate pathways.

The changes are detailed and we know they are a lot to take in.

If you’d like any support interpreting and implementing these changes, please get in touch withour planning team.

Authors: Laura Raffaele & Monique Lewis

Read other Council Connect articles from this issue

 

This publication is intended as a source of information only. No reader should act on any matter without first obtaining professional advice.