24 August 2011
Legislation to repeal Part 3A was passed by Parliament in June, but has not yet come into force. A key step that needs to be satisfied before this can take place is the finalisation of a new state environmental planning policy (SEPP) for “State and Regional Development”. This will effectively fulfill the previous purpose of the Major Development SEPP.
The Major Development SEPP will largely remain in force, but its operation will be confined to “transitional Part 3A” projects. It will also continue to contain land use controls for sites that have been rezoned via that SEPP.
The new State and Regional Development SEPP will contain classifications of projects that are either “state significant development” or “state significant infrastructure”under the amended provisions of the planning law. It will also contain the provisions that formally assign powers to the joint regional planning panels. This includes private sector urban development projects that exceed $20 million in value (up from the previous threshold of $10 million).
Importantly, joint regional planning panels will be the consent authority for “affordable housing” where the development has a capital investment value of more than $5 million.
Under the Environmental Planning and Assessment Act “affordable housing” means housing for very low income households, low income households or moderate income households.
“Moderate income households” are those whose gross incomes range from 80 per cent to 120 per cent of Sydney’s median household income. Very low and low income households are less than 80 per cent (the precise definition is here).
Other “private infrastructure and community facilities” that will be decided by the joint regional planning panels if there is a capital investment value of more than $5 million include:
- air transport facilities;
- child care centres;
- community facilities;
- educational establishments;
- electricity generating works;
- port facilities;
- rail infrastructure facilities;
- road infrastructure facilities;
- sewerage systems;
- telecommunications facilities;
- waste or resource management facilities;
- water supply systems; and
- wharf or boating facilities.
The full list is here.
While there is no longer a specific category for retail, commercial and residential development in the new “state significant development” stream, some Part 3A categories that were of interest to our members continue. However, some these categories have been narrowed.
For example, warehouse or distribution centres that were previously Part 3A projects when they exceed $30 million in capital investment value, will now be subject to a $50 million threshold for state signficiant development status.
Some manufacturing–related developments (e.g. research or development) that were previously able to be regarded as Part 3A because they employed more than 100 people may not be “state significant development”. The threshold for this category is a capital investment value of $30 million.
The Part 3A threshold for tourism development in sensitive areas is to be increased (for the new state significant development stream) from $5 million to $10 million. The ability to secure major project status on the strength of employing 100 or more people will be done away with.
Commercial and residential premises within a rail corridor or associated with railway infrastructure, will still receive major project status if it has a capital investment value of more than $30 million.
Following representations made by the Urban Taskforce the SEPP provides that development control plans do not apply to State significant development.
The Department of Planning and Infrastructure’s explanation of the intent of the draft SEPP is here.
The draft SEPP itself is here. The Department’s webpage containing all exhibited material is here.
We encourage you to contact us with any comments or concerns for inclusion in a submission to the Government. Comments on this draft will be accepted by the Department until 2 September 2011.
