House of Assembly Fifty-Second Parliament, Second Session (52-2) 52 2 Parliament of South Australia House of Assembly published Bills Development (Private Certification) Amendment Bill DEVELOPMENT (PRIVATE CERTIFICATION) AMENDMENT BILL Introduction and First Reading Introduction and First Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Planning Minister for Business Services and Consumers The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Business Services and Consumers) (15:54): Obtained leave and introduced a bill for an act to amend the Development Act 1993. Read a first time. Second Reading Second Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Planning Minister for Business Services and Consumers The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Business Services and Consumers) (15:55): I move: That this bill be now read a second time. I am delighted to present this important planning reform to the house. As members will know, this bill has arisen from conversations with the housing industry recently hosted by the Premier to discuss the current slump in new housing construction. The situation for the housing sector is quite poor at present, with a continuing decline in dwelling approvals across the country recorded by the Australian Bureau of Statistics from late 2009 onwards. South Australia has recorded 16 months of continuous decline in the number of dwelling approvals per month and is down some 17.2 per cent from August last year. It is very clear to the government that something needs to be done to give more support to the industry and the carpenters, brickies, sparkies and other workers whose livelihoods are supported by it. The government has, of course, already moved to do what it can, making housing approvals simpler and easier to obtain. In August this year, we made a series of changes to the state's residential development code which we believe will ensure that homebuyers are able to get a quick turnaround in planning approval, helping to keep downward pressure on housing affordability. These changes have been broadly welcomed by industry. I seek leave to have the remainder of the second reading explanation inserted into Hansard without reading it. Leave granted. The code was introduced in March 2009, based on the recommendations of the 2008 Planning Review, with the aim of streamlining residential development that met specific complying standards. Effectively, the code sets up a tick-a-box approach to planning requirements for low risk, low impact detached and semi-detached housing—in other words, the typical house and land package in greenfields areas. The changes were designed to respond to poor take-up of the code in its initial years of operation. By relaxing some of the more prescriptive requirements and clarifying points of ambiguity, we hope the revised code will provide a better vehicle for home buyers and renovators to obtain a planning approval, in most cases, within 10 business days. However, while the revised code provides for more streamlined assessment processes for new houses and alterations and additions to existing houses, applicants are still required to get a council approval. This contrasts with building assessment, which has allowed for building approvals to be granted by an accredited private certifier since 1997. This Bill will enable the same process currently applying to building approvals to also apply to residential code approvals. The residential code is a key vehicle for driving the Government's commitment to a target of 70 per cent of development being assessed as complying. As a consequence of this reform, an applicant will be able to seek all necessary development approvals for a home covered by the residential code through a private certifier. This will greatly improve the prospects of achieving this target in future years. This one small change will, we believe, have real benefits for all parties in our planning system: making housing approvals cheaper for first home buyers, helping industry in a difficult time in the construction market and reducing development assessment costs for councils—particularly in key urban growth areas where high volumes of new housing development add staffing and budget costs to councils' bottom lines, costs which are funded by existing ratepayers. Put simply, private certification means that a first home buyer can get their application for planning and building approval dealt with in one streamlined process. It will save applicants money, it will save councils money, it will save ratepayers money and it will mean that the housing industry can reduce its costs as well. This is a significant reform for South Australia and is, I note, a reform which the Local Government Association has expressed in principle support for in its media release of 19 September. I am also pleased that the LGA indicated in this release that it is supportive of other reforms to our planning system—particularly to our zoning system. We certainly believe there is much potential to unlock by simplifying and streamlining our zoning system. The Government fully agrees with the LGA that private certification, while an important reform in itself, is only one part of a larger and much needed reform agenda. That's an agenda we are very happy to discuss with them—and with Members of Parliament once this legislation has been dealt with. I should clarify that, while this reform is a first for this State, it is modelled on approaches in other jurisdictions. New South Wales and Victoria both provide for private certification for their equivalent of our residential code. The system in all those jurisdictions has worked well—and it will here too. In terms of machinery, the amendments this Bill will make to the Development Act are extremely simple. Firstly, the Bill will remove the current provision in the Development Act—section 89(3)—which prohibits a private certifier from granting a development plan consent. The effect of this provision at present is to limit private certification only to building rules matters. Its removal will enable private certification to be applied, by regulation, to other matters. With this subsection removed, the Government's intention is to then make a regulation providing for private certification to be available for residential code applications. Secondly, the Bill will insert a new section providing for auditing of planning decisions by private certifiers and councils. This new section mirrors existing section 56B which provides for auditing of building decisions by private certifiers and councils. It will allow for auditing of planning decisions prescribed by regulation. It is the Government's intention to apply this provision to residential code decisions, enabling auditing of private certifiers who undertake residential code certification. Finally, the Bill also makes a number of consequential changes to the Development Act that flow from these first two provisions. In terms of the regulations to be made, the Government's intention is to allow currently registered private certifier to certify both building code and residential code decisions. We are not proposing to introduce a new class of private certifiers for the residential code. Fundamentally, there will be no changes to the qualifications, registration processes, insurance requirements, code of practice obligations or auditing arrangements for private certifiers other than minor variations necessary to reflect the ability for private certifiers to grant approval in relation to residential code applications. It is the Government's intention to have draft regulations prepared and provided to Members prior to debate on the Bill in the Legislative Council. However, as indicated, we do not intend to make significant changes to the existing framework for private certification already applying in the Development Regulations. This approach will mean that, if Parliament supports this legislation, we can put this reform in place early in the new year—thereby providing an important stimulus to the residential construction sector as soon as practicable. I should also say that, although the Government is keen to progress this reform now as a means to assist the industry and home buyers in tight market conditions, this is a significant reform in its own right. The original 2020 Planning Review, which drafted the Development Act, foreshadowed the potential for private certification to be used to streamlined planning decisions—as did the 2008 Planning Review and, more recently, the 2012 Productivity Commission benchmarking report into planning, zoning and development assessment systems. Indeed, this important reform—which will have significant beneficial impacts for an industry currently undergoing difficult times—is the first of a series of planning reforms we in the Government are keen to take forward over the coming year. We believe that, while there has been much progress made since the 2008 Planning Review, there is a need to continue reforming the State's planning system to make it more competitive, efficient and responsive to community concerns, environmental and economic needs. Indeed, in debate on the Barossa Valley Character Bill in the Legislative Council, it was indicated that the Minister would be keen to meet with interested Members to discuss potential future planning reforms. As part of this process, I am looking to host a forum with Members of Parliament in the near future to discuss how further planning reforms can be taken forward. Letters will shortly be sent to the opposition and cross-bench MPs inviting them to this forum and I look forward to the policy dialogue I hope will ensue. In the meantime, this bill puts a stake in the ground. We think this is an important legislative reform. It is an important reform in its own right, but even more so now in the difficult times the housing industry finds itself. Because of the pressing need to support the housing industry and the workers whose livelihoods this sector supports, the Government will be pushing to secure passage of this legislation before the end of the year. This will enable certifiers to be granting residential code approvals in the new year. I commend the Bill to Members. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement 3—Amendment provisions These clauses are formal. Part 2—Amendment of Development Act 1993 4—Amendment of section 35—Special provisions relating to assessment against Development Plan This amendment requires a relevant authority to accept that a proposed development complies with the provisions of the appropriate development plan to the extent that such compliance is certified by a certificate from a private certifier. 5—Insertion of section 56C This amendment inserts proposed new section 56C: 56C—Development Plan assessment audits Proposed section 56C provides for a scheme that will require a council or private certifier undertaking the assessment of development of a prescribed kind against the provisions of the appropriate Development Plan to have its, or his or her, assessment activities audited by an auditor on a periodic basis. 6—Amendment of section 89—Preliminary This amendment repeals the prohibition on private certifier granting development plan consent. 7—Amendment of section 93—Authority to be advised of certain matters This amendment is related to the amendment to section 89. Debate adjourned on motion of Mr Pederick.