The NSW Government’s new Faster Assessments Incentive Program offers $200 million in funding to councils, aiming to help them accelerate development application (DA) assessments and support dwelling targets under the Housing Accord by 2029.
The intent is clear and commendable – faster and more efficient assessments should, in theory, remove delays in the planning system. However, while the program encourages councils to process DAs more quickly, it does raise an important question: does a faster determination actually mean more homes are delivered on the ground?
The Gap Between Approvals and Delivery
DA determinations are an early step in the housing delivery process, but they are not a guarantee that homes will be built. Many approvals never progress to construction, while others are delayed by factors outside the assessment system, such as infrastructure availability, market conditions, or delivery viability. Measuring success solely by approvals risks overstating the impact on housing supply.
Outdated Strategic Frameworks
Another challenge lies in the broader strategic planning framework that underpins development. In many areas, Local Environmental Plans (LEPs) and land release strategies are significantly out of date. For example, the Shoalhaven LEP 2014 is now more than ten years old, and the Nowra-Bomaderry Growth Management Strategy is approaching twenty years since adoption. Without refreshed planning instruments that reflect current housing needs, market conditions, and infrastructure priorities, speeding up DA assessments may do little to unlock meaningful housing delivery.
A Longer-Term View
A stronger connection between funding and tangible housing outcomes could make the program more effective. For example, aligning incentives with the number of occupation certificates issued would directly reflect dwellings delivered within each local government area. This approach would encourage councils not only to process DAs efficiently but also to focus on the strategic planning and infrastructure coordination needed to ensure projects are built and occupied.
It could also encourage greater use of complying development pathways, which often result in faster, lower-cost delivery of housing.
Towards Better Outcomes
The Faster Assessments Incentive Program highlights the State’s commitment to tackling housing supply, and improving council efficiency is certainly part of the solution. But to ensure the program delivers lasting outcomes, aligning incentives with delivery – not just approvals – may provide a more accurate and effective measure of success.
In the end, what matters most is not how many applications are determined, but how many homes are built and available for people to live in.
