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Premier Chris Minns announced on Wednesday plans to reform the almost 50-year-old Environment Planning and Assessment Act, which determines housing projects.

It comes amid continued pressure on the state government to deliver new homes, with tens of thousands of potential dwellings announced over recent weeks.

Mr Minns said the planning system had “become a bottleneck” to the state’s ability to build more homes and was “hurting” housing supply.

“For too long, NSW has been hamstrung by a planning system that delays good projects and makes it harder to build the homes our communities desperately need,” he said.

“This Bill is about clearing the path for the right development in the right places, with the right outcomes for the community.”

Addressing the Bill, Mr Speakman said he would work in “good faith” with the government and could not “emphasis how pro-housing, how pro reform we are”.

Asked about any challenge from NIMBY voices from the party room, Mr Speakman said: “We can’t all be NIMBY when it comes to our local areas and expect housing delivery to improve in NSW.

“Every part of Sydney, every part of NSW has to play its fair share, and that’s the argument I’ll take to the party room.”

Under the Bill, the government will establish a Development Coordination Authority, a “single front door” for advice on development applications and planning proposals.

A Housing Delivery Authority will also be enshrined into law and a 10-day deadline set for councils to approve small variations on complying developer applications.

The Bill also seeks to remove regional planning panels creating “unnecessary duplication” and create a single, statewide approach to community consultation.

Planning Minister Paul Scully said with 90 per cent of development applications for less than $1m, the system was “sweating the small stuff”.

“We need a planning system that supports the delivery of more homes, jobs and investment in an economically, socially and environmentally sustainable way,” he said.

“We need support from every end of the political spectrum so that the system that has guided development for the last 50 years can guide NSW’s development in the future.

“This is about making sure the planning system works for the people of NSW.”

Mr Scully said the changes would not affect the state government’s target of 377,000 new homes by 2029.

Treasurer Daniel Mookhey said the reforms were of “national significance” and would “catapult NSW from the worst planning system” to the best.

The reform plan was welcomed by Committee for Sydney CEO Eamon Waterford, who said the city was in a “generational housing crisis”.

“The planning system we have today has created headaches for communities, councils and developers alike,” she said.

“Too often, good projects for housing, infrastructure and economic development are caught in a maze that can run through as many as 22 agencies.”

Mr Waterford said the system could “overcomplicate minor projects”, while offering inadequate certainty on issues like climate risk, liveability and infrastructure alignment.

“These reforms aim to right-size assessment to the scope of projects and, for the first time, bring climate resilience into planning decisions.”

Gauntlet thrown down on planning reform

The Bill is set to be introduced on Wednesday, with Mr Scully stating members of parliament “will face a choice”.

“This is our opportunity to build a planning system that is fit for the future,” he said.

“That is ripe for a modern NSW, that is ready to tackle the challenges that we confront today as well as the challenges we will confront.

“They (MPs) can choose to not support these changes and be stuck with a planning system that holds back housing and curbs our opportunities.”

Mr Minns thanked the Coalition for “constructive dialogue” with the state government in relation to the changes.

“We’re accepting Mark Speakman‘s very bold, big offer of several months ago where he said the Coalition was prepared to stand with Labor and work up bipartisan planning reform,” he said.

Addressing the media later, NSW Opposition Leader Mark Speakman said he had penned a joint letter with Nationals leader Dugald Saunders offering “bipartisanship on this incredibly important topic”.

“Oppositions shouldn’t always oppose,” Mr Speakman said.

“Our job is to hold governments to account, and where we should oppose – where we should hold to account – we will.

“But, where this is the opportunity for constructive, bipartisan reform, it’s our job to pursue that reform.

“There is too much at stake here when it comes to people’s livelihoods and people’s ability to have affordable housing.”

Mr Speakman said he had not seen the legislation but had had high-level briefings.

“We’ll engage on the detail, we’ll go to shadow cabinet, we’ll go to our joint party rooms, but at the end of the day we are approaching this in good faith.

“Constructively, we will look at the detail and at the end we will make decisions in the best interest of the people of NSW.”

Mr Saunders said planning reform was “absolutely overdue” and looked forward to seeing what provisions there would be for regional NSW.