Further to the initial round of NSW planning reforms announced at the tail-end of last year, the second phase of reforms took effect on 21 March 2026.  These latest reforms introduce substantial regulatory changes that will reshape how planners, consent authorities, and applicants strategise their approach and manage the development application process.

This Industry Note provides a brief overview of key aspects of these reforms.

Targeted Assessment Development

The Targeted Assessment Development introduces a new ‘’fast-track’’ targeted assessment pathway, allowing certain projects to avoid a full merit assessment if relevant issues and impacts have been addressed upfront. As noted in earlier industry notes, this particular reform aims to “bridge-the-gap” between full DA and CDC pathways.

As of 21 March 2026, the Environmental Planning and Assessment Act 1979 (the Act) now reflects this pathway in Division 4.3A:

• Note that the targeted assessment development pathway is only available to a development or type of development that is explicitly included in a State Environmental Planning Policy (SEPP).
• This pathway would arise where a SEPP nominates a set of specific assessment criteria (or codes) for a place and development type.
• Before the SEPP is made, the Minister must publicly explain the proposal, invite submissions for at least 28 days, and consider those submissions.
• Assessment is targeted to relevant impacts only, rather than a full environmental assessment.
• It has been confirmed that designated development cannot be declared a targeted assessment development. This reinforces that the pathway is primarily for developments with lower‑risk or more predictable impacts.
• The NSW government have confirmed that the evaluation of targeted development assessment has a more narrowed lens, focussing predominately on policy and excluding broader matters such as:
  • environmental, social and economic impacts;
  • site suitability;
  • the public interest.

This reform aims to provide stronger direction through higher‑level policy, enabling faster and clearer assessment with outcomes determined upfront, rather than relying solely on Council discretion.

Modifications to Development Consents

Changes have been adopted to the increase to the scope of a section 4.55(1) modification application include applications where the consent authority is satisfied the proposed modification has ‘no environmental impact’, in addition to permitting modifications for clerical/administrative matters.

Additionally, changes have also included that s4.55(1) modifications that are not determined within 14 days cannot be refused and may only be approved, with any conditions applied only permitted to be relevant to the modification, without defeating the purpose of the modification. This ensures assessment remains proportionate and avoids unnecessary reassessment of the approved development.

Please note these changes only apply to s4.55(1) modification applications lodged after 21 March 2026.

Part 5.1 Assessment and Scope of An Environmental Impact Statement (EIS)

One of the more significant amendments to Part 5.1 of Environmental Planning and Assessment Regulations 2021 is that determining authorities are no longer required to consider all matters “to the fullest extent possible.” Instead, a more pragmatic approach has been adopted to evaluate matters in a way proportionate to the development’s nature and risk.

The Hon. Paul Scully MP, Minister for Planning and Public Spaces, notes that the purpose of the Planning Reforms Act 2025, is about:

Re-establishing a planning system that will assess land use to produce outcomes, not give priority to process – a modern system to deliver faster and fairer results.

Accordingly, the proposed amendments to Part 5.1 are intended to streamline the assessment process by removing content that is unnecessary for development assessment. This is further reflected in the changes for an EIS in section 192, where an EIS no longer needs to include feasible alternatives to a development, but rather just an analysis of the ‘significantly likely impacts’ of a development.

Reviews and Appeals

In regard to Review of Determinations under Division 8.2 of the Environmental Planning & Assessment Act 1979, a review will no longer need to be determined within 6 months but rather, a review will have to be lodged within 6 months – thus removing the uncertainty around the authority decision making timeframes which could influence the review.

Applicants may also request that the review be determined by a local planning panel (if the council made the original decision). This aligns with the proposed shifts to local planning panels, enabling faster, more locally accountable decision-making, as discussed under the ‘shift in responsibility’ in the previous industry notes from December 2025.

Note as well that appeals will now no longer be able to be assessed concurrently when an existing review of determination is underway. However, the 6 month period to make an appeal to the P&E court has been modified to be ‘paused’ while a Review of Determination is being assessed.

It is also important to note that the pandemic-related extended appeal rights are now set to be removed.

For queries in relation to the above proposed amendments, please contact our town planning team, who would be happy to discuss further.

Telephone – 1300 794 300
Email – enquiry@tfa.com.au
Website – www.tfa.com.au