Statement of Expectations Order

The Minister's Environmental Planning and Assessment (Statement of Expectations) Order outlines what the Minister expects from councils when they assess development applications, prepare planning proposals, expend contributions and carry out strategic planning.

The Order relates to the Minister's powers under section 9.6(1)(b) of the Environmental Planning and Assessment Act 1979 (EP&A Act). These powers allow the Minister to appoint planning administrators or confer functions of councils onto Sydney district or regional planning panels where a council's performance is unsatisfactory. This would only happen as a last resort, as explained below.

The expectations help guide councils and inform the community about how councils should carry out their planning responsibilities.

The Order contains Heads of Consideration which must be taken into account before the Minister can appoint a planning administrator or confer functions to Sydney district or regional planning panels. These considerations link to expectations about how councils should perform their planning functions, including the timeframes they should meet.

The Order has been updated for 2026.

NSW needs a planning system that works efficiently to deliver homes and support growing communities. At the same time, it must protect the environment and improve the quality of life for our communities. To achieve this, the system must be fair, transparent and hold everyone involved accountable for their performance.

The updated Order reflects current Government policies and priorities. It sets clear and reasonable timeframes for councils to meet and will be supported by a monitoring and reporting framework to help councils stay on track.

The update also responds to the need to deliver more homes across the State. Under the National Housing Accord, the NSW Government has committed to enabling 377,000 new homes by 2029. To meet this target, councils and the NSW Government must carry out their planning responsibilities efficiently and effectively.

The heads of consideration in the previous Statement of Expectations Order continue to apply, being:

• whether or not the council has failed to meet the Minister's expectations in relation to council performance
• the duration, frequency and degree to which the council has performed, or failed to perform, in accordance with the Minister's expectations
• the range and type of planning and development matters in respect of which the council has performed, or failed to perform, in accordance with the Minister's expectations
• whether or not an appointment under s.9.6(1)(b) should be made in relation to one or more of a particular class of planning and development matter, or all planning and development matters dealt with by the council
• the effect of any caretaker period preventing a council's performance in dealing with the planning and development matters (or any particular class of such matters) as set out in clause 5 [the expectations]
• the public interest.

Explanation

The heads of considerations are helpful in determining council performance. They include considerations such as how often the expectations have not been met and the range of functions the council has failed to perform.

Considerations

The heads of consideration to be taken into consideration in exercising the Minister’s intervention power under section 9.6(1)(b) are:

• the individual circumstances of each council, for example, whether external events like natural disasters have impacted the council, or the council has received an unexpectedly high volume of development applications compared to their current employee levels
• whether or not other available interventions or support have failed to result in improvements to council performance in relation to the Minister's expectations
• with respect to development applications for residential accommodation:
  • whether the Minister's expectations have been met for development assessment timeframes
  • whether the council has been identified as having a key responsibility in the delivery of housing supply by the NSW Government.

Submission to lodgement

Council should lodge development applications for which it is the consent authority as soon as practical and within an average of 7 days of submission using the following key performance indicators:

• within 4 days of submission complete a review of the adequacy of the development application
• within 4 days of submission issue an invoice providing the applicant 3 business days to make payment.

Explanation

Some councils are taking an unreasonably long time to lodge development applications once submitted on the NSW Planning Portal by applicants, well over the expectations listed above. This delays the assessment and delivery of housing and other development.

Determination

Council should determine development applications for which it is the consent authority (including development applications determined by a local planning panel) as soon as practical and whichever is the lesser of council’s previous financial year average, or within an average of:

• 90 days of lodgement between 1 July 2026 to 30 June 2027
• 80 days of lodgement between 1 July 2027 to 30 June 2028
• 65 from 1 July 2028 onwards.

Explanation

Determination timeframes are one of the main measures of how efficiently the planning system is operating. Councils have already made strong progress since the introduction of the council league table on 1 July 2024.

Since the introduction of the updated 2024 Ministerial Statement of Expectations Order and council league table, average assessment timeframes have reduced from 115 days to 84 days, a 31‑day improvement as of 31 May 2026.

The targets will continue to decrease incrementally from 1 July 2026 through to 1 July 2028, reflecting the Government's expectation that councils will continue to improve their assessment efficiency over time.

The Department recognises that development applications vary greatly in type, scale, planning merit and quality of documentation provided. Setting an average expectation for the whole council takes into account these variations.

The Department also acknowledges that development applications differ greatly for councils across the State. The Department considers that these expectations are achievable for all councils based on past performance. However, the Department will consider these differences and the circumstances of a council if the expectations are not met.

Determination timeframes include development applications determined under delegation by council officers and by local planning panels. They also include approvals (including deferred commencement consents) and refusals, but do not include withdrawals, modifications, or development applications subject to reviews under s8.2 of the EP&A Act.

The average time to determine development applications is calculated by counting the total number of calendar days between the lodgement date and the determination date for each application determined. This number is then divided by the total number of development applications determined within the selected period. Calendar days include weekends and public holidays.

The expectations are measured in 'gross days' that do not take into account any 'stop the clock' times where councils are waiting for additional information. End-to-end timeframes are likely more meaningful to the community and industry.

Modification applications

Council should assess modification applications in accordance with the timeframes and requirements set out in the Order.

Explanation

For the first time, the 2026 Order sets expectations for how councils assess modification applications. Modification applications are a significant part of the workload for many councils and delays in their assessment can hold up construction and housing delivery just as much as delays to original DAs. Councils are expected to treat modification applications with the same efficiency standards applied to original development applications.

Infrastructure contributions

Councils are required to spend a proportion of local development contributions each year in accordance with the Order. This will fund local infrastructure such as roads, parks and community facilities to be delivered alongside new housing and support growing communities.

Explanation

Unspent development contributions can delay the delivery of infrastructure needed to support new housing. These changes respond to the $4.6 billion of unspent contributions currently held by councils and require a more consistent approach to spending funds.

This will help ensure infrastructure is delivered in step with housing and better support growing communities.

Complying Development Certificate Variation Statements

Refusals of Complying Development Variation Certificates should be limited to circumstances where the variation is assessed as having significant additional adverse impacts.

Explanation

Complying development is a fast-track approval pathway for straightforward, low-impact development that meets predetermined planning standards. CDC Variation Certificates allow for minor variations to those standards. Councils play an important role in administering this process. An overly restrictive approach to refusing Variation Certificates can undermine the efficiency, certainty and purpose of the complying development pathway.

Where possible, a council should consider whether a concurrent Planning Proposal and Development Application process can be done to reduce duplication and generate efficiencies via a dual process.

Explanation

Planning proposals and Development Applications are a key feature of the NSW Planning system and are one of the main pathways to enable housing including housing diversity.

Enabling a concurrent process removes duplication when both stages are done separately and ultimately enable faster approvals.

The 2026 updates and refines the expectations for strategic planning including planning and updating controls for any locally significant industrial land identified in a regional strategic plan.

These expectations reflect the critical role councils play not just in assessing individual applications, but in setting the long-term planning framework that determines where and how housing and development can occur.

Local strategic planning statements

Council should be satisfied that its local strategic planning statement aligns with any draft or finalised NSW Government strategic plans, priorities and policies, and reflects progress made in local planning and development delivery.

This extends to reviewing or preparing relevant supporting evidence to inform any updates to LSPS and local strategies to ensure the actions identified in the relevant draft or final regional strategic plan (including any housing targets) and LSPS are delivered in accordance with the standards and timeframes identified by the Department.

Explanation

Local strategic planning statements are an important part of the planning system, bridging the gap between a district strategic plan or regional plan and implementation at the local level through a Local Environmental Plan. This expectation seeks to ensure that an updated Local Strategic Planning Statement is maintained for every council.

Local planning strategies are required to provide more detailed strategic planning than Local Strategic Planning Statements, often focusing on a priority of the council, such as delivering housing through a local housing strategy. This expectation ensures local planning strategies are prepared to deliver on the actions of regional/district plans.

Again, the strategies must be in accordance with the standards and timeframes of the Department's delivery programs, as set out in guidance documents like the Local Housing Strategy Guideline, updated from time to time.

Councils must not only prepare local planning strategies but deliver on the actions within them as well. Delivery would include council making the necessary amendments to their Local Environmental Plan, development control plan and development contributions plan, and committing the necessary finances to fund enabling infrastructure.

Through the Department’s endorsement of local housing strategies, it may give additional requirements for the strategy that must be complied with, such as to submit an implementation delivery plan for evaluation to ensure the strategy’s actions are being properly delivered.

Housing supply

The Local Environmental Plan (LEP) enables the delivery of housing through its development standards, zones and uses. Councils must ensure their LEPs have enough feasible housing capacity to deliver on its housing target.

Explanation

This expectation directly links a council's LEP to its housing delivery obligations. It is not sufficient for a council to have housing targets identified in a strategy if the LEP does not actually enable that housing to be built. Specifically, the LEP must provide for housing capacity that is not only sufficient in number but also genuinely feasible — meaning the planning controls must allow development that is economically viable to deliver.

In practice, this means councils should:

• audit their LEP to assess whether existing zones, density controls and development standards can realistically deliver the number of dwellings required to meet their housing target
• identify and address any planning controls that create barriers to feasible housing development, including height limits, floor space ratios and minimum lot sizes
• update their LEP where controls are found to be inadequate, in line with any guidance from the Department.

This expectation is closely linked to the preparation and delivery of local housing strategies, and councils should address housing capacity as part of that process where applicable.

The Department will use data gained through the NSW Planning Portal and other sources to monitor how councils are performing against the Minister's expectations. Key expectations like development application determination averages are publicly reported on the council league table dashboard on the Department's website.

The Department will use the following criteria to identify councils requiring intervention:

• DA assessment performance: Councils that take 90 days or more to determine applications, compared to 105 days or more in 2025–26.
• Percentage of applications assessed in expected timeframe: Councils where 60% or less of their applications meet the expected timeframe of an average of 90 days for 2026–27, compared to 60% or less of applications meeting the expected timeframe of 105 days in 2025–26.
• Housing target/implied dwelling demand: Councils with a housing target or projected demand of more than 500 dwellings, which remains consistent with 2024–25.

The average development assessment days reported in the league table are measured in gross days. They do not consider 'stop the clock' days when councils are waiting for more information from applicants.

This is because end-to-end timeframes are a more meaningful measure of how long development assessment is taking, with the same expectation applying to all councils across the State.

Council performance is captured on the sixth business day of every month, with this data being used to determine which councils are not currently meeting expectations.

Following feedback from councils, the methodology for assessing council performance in the council league table has been updated.

• Deferred commencements will now count as determined applications.

The changes will apply from the August 2026 data release (published in September) and will be reflected in both current and previously reported data. While results may shift, the updated methodology provides a fairer and more accurate picture of council performance.

Councils that are not meeting expectations will be asked to provide an explanation.
Depending on the response, the Department may work with councils to improve performance, including engaging expert planners or applying tools such as the Accelerated Development Assessment Program to help streamline approvals.

The Department will then work with the council to develop a tailored action plan and agreed timeframes for action.

If a council is unwilling, or fails, to implement agreed actions, the Minister for Local Government may consider whether a Performance Improvement Order would be necessary to compel compliance with the actions, or the Minister for Planning and Public Spaces may consider whether a Planning Administrator would improve performance.

The NSW Government is supporting councils with a range of practical measures to help improve performance and speed up assessments.

These measures include $200 million in financial incentives through the Faster Assessments Incentive Program for councils to help achieve housing targets and improve planning performance.

The Department is also providing expert planning support to work with councils to improve assessment processes both on a voluntary and mandated basis, helping to identify improvement opportunities and reduce resourcing requirements.

The Accelerated Development Assessment Program, building on the City of Newcastle’s approach and rolling out Statewide, aims to assess low-impact development applications in under 10 working days.

The Department is investing $2.7 million to explore how artificial intelligence can support councils to reduce assessment timeframes for local development applications.

The Department will continue to make amendments to the planning system and the NSW Planning Portal to make the development application process clearer and more efficient.