Back in November 2025, the NSW Parliament finally passed the Planning System Reforms Act 2025 that we wrote about last year. The changes are coming into effect on 21 March 2026.
With the aim of encouraging more housing to ease the housing affordability and availability crisis that has persisted in NSW for so long, the reforms also include significant improvements for anyone looking to carry out a major renovation, be that an extension or second-storey addition.
Key Impacts on Major Renovations
1. Faster Approval for Minor Variations:
- Under the expanded Complying Development pathway, councils can now approve minor variations to development standards, such as small discrepancies in setbacks or landscaping, without requiring the project to enter the full Development Application (DA) pathway.
- Councils must decide on these variation applications within 10 days – or 20 days if combined with a Complying Development Certificate – otherwise they are deemed approved by default.
2. Streamlined Modifications:
- It’s now possible to access streamlined 14-day approvals for minor modifications to existing development applications (DAs) that don’t have environmental impacts. The aim here is to increase certainty for applicants and help avoid construction delays.
- For builders who encounter the need for small changes once construction is underway, this is a welcome change. Under the existing system, minor amendments could require lengthy reassessments, slowing down projects and increasing costs.
3. Targeted Assessment Pathway
- A new “middle-ground” pathway has been introduced for low-risk projects that have already addressed major planning issues upfront. This can reduce assessment times by up to 50%.
- Whilst this is mainly aimed at new builds, it is possible that it may apply to renovations that are low-risk, consistent with strategic plans, and have limited environmental impact.
4. Standardised Conditions
- The NSW Government is introducing state-wide standard conditions of consent, providing more certainty and consistency for builders and homeowners across different council areas.
Other Considerations
If your property is in a heritage or conservation area, you will very likely still need a full DA to ensure the second storey respects the neighbourhood aesthetic – areas like Haberfield where the whole suburb is listed as a Heritage Conservation Area (HCA).
Possible Unintended Consequences
Overall, these add up to positive changes that should reduce planning friction and speed up renovation projects.
There is some concern about how these changes will work in practical terms. For example, will the tight deadlines for variations and modifications mean that some Councils make snap refusals to avoid missing these deadlines? The old system may have led to negotiation over the unsatisfactory elements of the variation.
However, there is no doubt the State Government has set down a marker to Councils to help reduce waiting times and to focus their energy on larger developments rather than people’s homes.
Looking to Renovate in 2026?
If you are keen to take advantage of the new reforms and the improvements to flexibility and speed through the planning system, we’d love to hear from you.
Addbuild has been helping Sydney homeowners renovate their house for more than 45 years as a ‘concept-to-completion‘ contractor that can also design and handle the development application process on your behalf, saving you time and money.
We specialise in remodelling, home additions and home extensions, and have unbeatable experience and know-how having completed over 2,000 projects, all in the Sydney area.
Call our office on (02) 8765 1555 or send us a message using our contact form if outside of office hours.
If you are still researching, have a look at our blog, consumer guide to home improvement and masterclass to get further ideas about every aspect of renovating your home.
Searching for inspiration? Have a look at our featured projects and ‘before and after’ photos.