The NSW Government has rolled out a wave of planning system reforms on Saturday, 21 March 2026, amending the Environmental Planning and Assessment Act 1979 (‘the EP&A Act’ or ‘the Act’). These changes enact reforms introduced under the NSW Planning Systems Reform Act 2025 and aim to make planning assessments faster, simpler, and more proportionate to the level of risk involved.
1. A New “Targeted Assessment” Pathway
From March 21, the NSW Government has established the legal framework for a new streamlined assessment pathway called Targeted Assessment Development.
What starts now:
- The definitions, rules and structure for targeted assessment development come into force.
- The Act has been updated with new sections describing how the pathway works (see Division 4.3, Division 4.3A, and Schedule 1 of the Act).
- Consultation rules are updated so they’re ready for when the pathway is active.
- Notably, under subsections 4.15 (1C) and (1D) of the Act, determination by a consent authority of targeted assessment development must not take into consideration the significant likely impacts of that development, the suitability of the site for the development, or the public interest, only the matters identified under subsections 4.15(1)(a) and (d) of the Act.
What does not start now:
- The pathway is not effectively operating yet because the Government hasn’t released a SEPP (State Environmental Planning Policy) that will declare the criteria for which developments will be subject to targeted assessment development.
- That SEPP must go on public exhibition for 28 days prior to commencement.
2. Faster Decisions for Minor Modifications (s4.55)
A. Modification applications under Section 4.55 of the Act that:
- Fix minor errors, misdescriptions or miscalculations, or
- Have no environmental impact
Will now be assessed under s4.55(1) instead of s4.55(1A).
This is significant because:
B. Councils must now determine s4.55(1) modifications in 14 days after lodgement
A brand‑new section of the EP&A Regulations, s118A, requires councils to determine s4.55(1) modifications within 14 days after lodgement, because…
C. If a council misses the deadline, they must approve it
A new section of the Act, s4.55A, says that if the council does not determine a s4.55(1) application in that 14 day period, they:
- Cannot refuse the modification, and
- Must approve it as soon as practicable with conditions that only relate to the modification and that give effect to the modification (note: exact wording is “must not defeat the purpose of the modification application”).
This is a major shift in how the system handles minor modifications and aims to result in faster outcomes for applicants. It will assist in increasing applicants’ certainty and confidence in the success of minor modifications.
3. REFs and EIS Now Use a “Proportionate to Risk” Standard
From March 21, environmental impact assessments for activities under Part 5 Division 5.1 of the Act (including Reviews of Environmental Factors (REFs) and Environmental Impact Statements (EIS) must now be:
- Scaled
- Proportionate
- Matched to the level of environmental risk involved.
Section 5.5 of the Act has been amended so that activities no longer need to be assessed to the fullest extent possible by a determining authority; the determining authority only needs to
- Examine and take into account matters affecting or likely to affect the environment by reason of that activity; and
- Take into account the matters referred to above in a manner that is proportionate to the nature and risk of the activity.
What this means in practice:
- Low‑risk projects → a shorter, simpler REF can be prepared
- Higher‑risk projects → a more detailed analysis is required
- No more obligation to assess “everything” (e.g. “full extent possible”, including alternative options), only focus on significant likely impacts, not every possible impact
This change aims to eliminate unnecessary over‑reporting and keep assessments practical and relevant to the scale and nature of the activity being described.
4. Appeal Processes Cleaned Up
The legislation now makes it clear you cannot apply for :
- An internal review and
- A Court appeal
For the same decision at the same time, under Part 8 of the Act
This avoids duplication and confusion in planning disputes. Please note that a Section 8.2 review cannot be undertaken in relation to a decision after the Court has disposed of an appeal against that same decision (s8.4 of Act).
Notably, provided a review under Division 8.2 is submitted prior to the rights of appeal expiring (6 months after the determination being registered on the NSW Planning Portal), subsection 8.3(2) of the Act has been amended so that an 8.2 review is no longer required to be both lodged and also determined within that same 6-month period after the determination.
What This Means Going Forward
These reforms signal a clear policy direction: faster assessments, proportionate regulation and greater certainty for low‑risk development. However, the practical benefits will only be realised where the legislation is applied with judgment, discipline and a clear understanding of risk.
As NSW’s planning system continues to evolve, certainty, judgment and delivery are critical. BRS provides clear, commercially focused town planning advice that cuts through reform and drives reliable outcomes. Speak with our town planning team to understand how these changes affect your project, and how we can help you move forward with confidence below.
