A NSW government paper recommends speeding up the approval process for many types of developments. Source: AAP
NEW homes will be cheaper to build under the NSW government's overhaul of the state's planning system, says Planning Minister Brad Hazzard.
About 80 per cent of development proposals will qualify for fast-tracked decision making under the changes, estimated to save businesses and families about $174 million a year.
Most of these applications, which include new homes and home extensions, will be determined in less than 25 days.
Mr Hazzard said the government was slashing millions of dollars in red tape.
"That should translate into far faster processes, and holding costs are what contributes to the expense of homes, so we are anticipating that will have downward pressure," he said.
He was unable to put a figure on the cost saving for new homes but said it was logical to expect a drop in prices if more housing was coming in to the market.
NSW Premier Barry O'Farrell said the white paper represented the most significant reform of the state's planning laws in more than 30 years.
"What we are delivering is an opportunity for communities and councils to work together to plan their suburbs, their streets and their regions.
"To deliver homes more affordably, to deliver the jobs closer to where people work and to do so at the same time as infrastructure is being delivered."
Under the changes, communities will have a legal charter to participate in upfront planning of areas, deciding where developments will go, what type they will be and what infrastructure will be needed to support them.
Community consultation was the centrepiece of the reforms, Mr Hazzard said.
"There will be guaranteed capacity for the community to have their say on how they see their local area developing."
"The community will be able to own this planning system, they will own what happens in their local area."
However, he conceded, "There is no question it is a mighty challenge to get the community to switch on at an earlier stage".
State opposition leader John Robertson said the proposed planning laws would give more power to developers.
"This is a regime which will give developers everything they want.
"It will exclude local communities from having a say at the most critical point of the planning process - that is, when the detailed development applications go to a council and no-one in the local community will have a say on anything."
Opposition planning spokesman Luke Foley said it would remove the general consultation process with communities in the preliminary stages of community engagement.
"Whilst cutting out the consultation at the point when development plans become a reality - that is a very cynical breach of faith with people who voted for a return of planning powers to local community."
Greens MP David Shoebridge said the proposals would favour developers over local communities.
"It's very clear that this legislation is intended to privilege developers, builders and construction, while local communities and local environment will play second-fiddle."
He said local councils will be sidelined on planning decisions with fewer representatives on regional planning boards.
"Local councils will become government patsies, they will just implement the decisions being made by the regional planning boards.
"Who would have thought that two years into the O'Farrell government, we would be looking back to the corrupt and broken scheme of planning under Labor and thinking they were the good days for planning in NSW."
The white paper is now open for community consultation for the next ten weeks. Legislation will be introduced to parliament in the second half of this year.
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