REINSW: NSW Government Should Demand Councils Meet Performance Expectations

26 February 2025
REINSW CEO Tim McKibbin


Following the Victorian Government’s final release of housing targets and its stipulation that if Councils “don’t try to meet these targets, they’ll lose their planning powers”, the Real Estate Institute of NSW (REINSW) says the NSW Government should deliver a similar ultimatum.

REINSW CEO Tim McKibbin says the NSW Government should make its performance expectations of Councils in the state clear – and then hold them to account.

Those Councils who don’t meet their housing targets should lose their planning powers, he says.

“The housing crisis demands strong action on numerous fronts. One of the major barriers to new supply, and one of the most significant contributors to high development costs, is the inefficient and cumbersome planning process,” Mr McKibbin says.

“A time and cost-efficient planning process is urgently needed as the inability or unwillingness of many Councils to process development applications in a reasonable timeframe is a major reason we’re in this mess.

“It’s therefore also one of the major opportunities for improvement.

“If Councils have a clear understanding of what Government expects in terms of its housing approvals, as well as a clear understanding that if they fail to meet those expectations, they’ll lose their approval powers, then they will know where they stand.

“Councils can also take the initiative of making it clear to developers as to what a compliant development looks like.

“An opportunity exists for Councils to clearly define the types of developments they want to encourage so developers can design their projects accordingly. Then, any DA which satisfies the criteria outlined by Council can and must be approved fast.

“Clear performance expectations would bring transparency and efficiency to a planning and approval process which has for too long been mired in unnecessary delays, costly red tape and on the part of some Councils, a refusal to address the housing challenge in their own backyard,” Mr McKibbin says.