This article is from the Australian Property Journal archive
WESTERN Australia is proposing new planning reforms to accelerate the delivery of homes across the state and has announced a temporary extension to the two-year land tax exemptions.
Introduced to state parliament on Wednesday, the Planning and Development Amendment Bill 2023, targets boosting housing supply and accelerating decision-making through changes to o Development Assessment Panels and cutting red tape for single-home approvals.
“Governments across Australia are facing challenges with housing supply – these significant reforms are a key plank of my Government’s response to the current barriers to delivery,” said Roger Cook, premier.
“Western Australia is leading the nation in delivering planning reforms, and the introduction of this comprehensive Bill is an important step towards meeting our commitments under the National Planning Reform Blueprint.”
The Bill proposes five key initiatives including a new permanent significant development pathway for projects; reforms to clarify decision making in local government for single houses; reforms to Development Assessment Panels, Improving existing planning processes to cut unnecessary red tape; and reforming of the Western Australian Planning Commission (WAPC).
“Planning must adapt and change to deal with future market challenges and ensure housing supply for now and into the future,” said John Carey, planning minister.
“Our Government will continue to deliver and support reforms to assist WA to meet the housing and density infill developments that it desperately needs to boost housing supply.”
The reforms to Development Assessment Panels will include:
- Reduction in the number of panels from five to three (Metro-Inner; Metro-Outer; Regional) to improve consistency in decision-making;
- Appoint full-time, fixed term specialist members, retain a pool of sessional members and reduce perceptions of conflict of interest;
- Removal of previous mandatory thresholds of $20 million for the City of Perth and $10 million for the rest of the State, making the DAP system an opt-in pathway for any development proposal over $2 million (including grouped or multi-dwellings but excluding single houses and ancillary structures); and
- Providing all community housing projects with the ability to opt into the DAP pathway regardless of the size or value of the proposal.
The new permanent significant development pathway see the temporary COVID-19 pathway refined and improved. With a new timeframe for determination of 120 days.
The pathway will provide complex proposals of more than $20 million in the Perth and Peel regions and more than $5 million in regional WA with an option for a streamlined, efficient and coordinated assessment.
“A permanent significant pathway is critical for ensuring that we have clear, and streamlined process for major projects, including housing developments in Western Australia,” added Carey.
Cath Hart, CEO at REIWA noted WA is currently facing a shortfall of 25,200 new properties from 2023 to 2027, with the planning approvals process often cited by builders and developers as causing significant delays.
“These reforms will cut the red tape and simplify the various processes, allowing construction to begin sooner,” said Hart.
“While these reforms are aimed at the building and development sectors, they are welcomed by REIWA because they are all about reducing delays and boosting housing supply.”
Hart added WA’s growing population is currently putting pressure on the established homes market, with listings for sale at 30-year lows, homes selling in a median of nine days, the vacancy rate at 0.7%, rents climbing and rental properties leasing in two weeks.
At the same time, the state government has announced a temporary extension to the two-year land tax exemptions to those constructing or refurbishing their future home, available to homeowners who signed their building contract between 1 July 2020 and 30 June 2023.
“The temporary extension will support homeowners who are building or renovating their future home, ensuring they are not charged land tax due to construction delays which are outside their control,” said Sue Ellery, minister for finance.
“This temporary measure will give peace of mind to homeowners affected by the recent constraints in the residential construction market.”
Eligible homeowners who are not receiving an exemption for another residence may now receive an exemption for the first three assessment years that their residence is being constructed; and an additional fourth year in very limited circumstances.
While eligible homeowners who are receiving an exemption for a second residence will no longer be required to repay two years of land tax if they are unable to meet the two‑year construction timeframe; and may receive an exemption for an additional third year in exceptional circumstances outside their control.
“These latest reforms complement our record $2.6 billion investment in social housing and homelessness measures, which includes funding to deliver 4,000 new social homes,” concluded Cook.
