DEVELOPMENT (PLANNING AND DEVELOPMENT REVIEW) AMENDMENT BILL

Introduction and First Reading

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (00:40): Obtained leave and introduced a bill for an act to amend the Development Act 1993. Read a first time.

Second Reading

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (00:40): I move:

That this bill be now read a second time.

On 19 June 2007 the government announced the planning and development review. The objective of the review was to achieve the most competitive planning and development system in Australia and New Zealand, without compromising the liveability or sustainability of the state. On 2 June 2008 the government endorsed the recommendations of the planning and development review and endorsed an implementation plan for those recommendations. A key legislative change flowing from those recommendations is the Development (Planning and Development Review) Amendment Bill 2008. This bill is intended to establish a legislative framework to ensure the key elements of the planning and development review (including an increase in the level of complying development) can be achieved. In summary, these elements relate to the following.

Red Tape

The bill will facilitate a reduction in red tape across the South Australian planning system, which will result in a benefit of above $75.6 million to applicants and local government by realising savings:

to private citizens of $16.6 million through a reduction in the time it takes to have basic renovations and basic house construction approved and completed (through a reduction in the interest paid on loans during the planning approval and construction processes);

to the industry of about $49.6 million through more timely approvals and $4 million through improved land rezoning times, to enable the industry to better meet market demand, particularly when housing demand outstrips supply (as is currently the case);

to local government of approximately $5.4 million through a reduction in costs associated with administering the South Australian planning system.

The reforms are also expected to deliver benefits to the following beneficiaries.

Applicants

The reforms will provide for a development code that will be a single document explaining how the assessment of residential development operates and setting clear performance standards for residential development. This reform should:

reduce the time taken to process applications in the merit and complying development categories from 17 weeks to six weeks (a 65 per cent reduction or 11 weeks); and

provide estimated interest savings per application of between $1,576 and $5,517 for private investors and $16,500 for large commercial developments due to a reduction in the time taken to process development applications; and

Local government

The reforms should allow councils to:

expand the range of complying development by converting 50 to 70 per cent of all merit-assessed residential applications to exempt building rules consent only or complying development; and

provide administrative cost savings to councils of $5.4 million per annum (based on current activity levels).

The state

It is expected that the reforms will also:

lead to an approximate increase of $3.4 billion to $4.9 billion in gross state product (GSP) or 1.08 per cent to 1.51 per cent over the next five years (or approximately $689 million to $992 million per annum on average); and

lead to an opportunity cost saving of $62 million per annum by reducing the total cost of stop the clock events each year. That is, based on the value of building works delayed each year, $62 million will be available to be invested elsewhere the economy.

Finally, there are potentially a number of follow-on effects from minimising such delays. For applicants and builders this includes the introduction of more certainty and predictability into:

the construction labour market, where skills are highly sought after due to a shortage of these skills; and

construction contracts, by reducing any premium costs associated with the risks brought on by delay.

In addition to the formal report associated with this bill, I will also make some other comments at this stage. This legislation enables the residential development code to be introduced by regulation. A draft version of the code has been available for consultation since June this year, which is in keeping with this government's commitment to public participation in its decision making. After three months of taking submissions from the public, industry and community groups, the government is on track to finalising this code in time for its introduction in March next year.

The introduction of a residential development code for dwellings of up to two storeys will allow code compliant applications to receive planning approval within 10 working days. At the conclusion of the three-month consultation period, the government began road-testing the code against development applications received by 10 metropolitan and regional councils in the first quarter of this year. That road-testing determined 37 per cent of applications would have been subjected to the new residential code, 2 per cent would have been exempt from a planning approval under rules that come into force from 1 January, and 22 per cent would have been assessed under the building rules consent only provisions.

A number of changes are being considered to the draft code based on feedback from local councils, the Local Government Association, community and industry groups. I will briefly outline on the record some of those changes. One of the main changes is to delete the minimum size area (350 square metre) requirement and retain density controls through the local Development Plan. The code will apply to existing allotments (provided all other performance controls are met) and to allotments with site areas consistent with the policy set out in the local Development Plan. For example, if the Development Plan allows you to build a 'two for one', you will be able to under the code.

The code to apply to detached dwellings, semi-detached dwellings, alterations to existing home but not to row dwellings (row dwellings comprise less than 1 per cent of applications). The code will be presented in several parts so that there are differing levels of requirements depending on the nature of the building; that is, more performance controls for new homes and alterations, less for sheds and carports. A deletion of the five metre front setback. Instead, the setback will be as prescribed in the local Development Plan. Deletion of the three metre rear setback. Instead, for sites greater than 300 square metres:

Single storey component of a dwelling (measured from the closest solid wall) must be set back from the rear boundary a minimum distance of four metres.

Upper storey component of a dwelling (measured from the closest solid wall) must be set back from the rear boundary a minimum distance of six metres.

For sites less than 300 square metres:

Single storey component of a dwelling (measured from the closest solid wall) must be set back from the rear boundary a minimum distance of three metres.

Upper storey components of a dwelling (measured from the closest solid wall) must be setback from the rear boundary a minimum distance of five metres.

There are changes to the side setbacks as follows:

The requirement that you can only build on the boundary to one side only (not both).

All walls located on a side boundary must not exceed:

three metres in height; and

50 per cent of the remaining length of the boundary (excluding the length of any front setback); and

no wall along a boundary can be greater than eight metres in length.

There is also inclusion of a requirement for sheds and other outbuildings to be made of non-reflective materials and finishes.

The government also remains of the opinion that sustainability is an issue best addressed through the building code rather than the development code. There will be other changes, all of which respond to issues raised during the public consultation and road-testing phase. These changes will be available in the final versions of the code that will be available before debate begins on this bill, which, hopefully, will be when we resume on Tuesday week. I remind members that the residential development code does not apply to local heritage places, state heritage places, state heritage areas, historic conservation zones and policy areas, and development that is subject to a referral such as to the Country Fire Service.

Character will also be acknowledged, in addition to the code that will come into effect in September next year. Further public consultation will be required with local councils, community and industry groups to identify the features that distinguish character within our suburbs. I commend the bill to members. I seek leave to have the explanation of clauses incorporated in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

The measure will be brought into operation by proclamation.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Development Act 1993

4—Amendment of section 33—Matters against which a development must be assessed

These amendments serve 2 purposes. New subsection (4a) of section 33 will provide a mechanism under section 33 to prescribe classes of development that will not need to be granted development plan consent. New subsection (4b) will provide that where a development only requires building rules consent and the council is the relevant authority, the council must issue a development approval if or when it issues the building rules consent.

5—Amendment of section 35—Special provisions relating to assessment against a Development Plan

These amendments relate to the assessment of complying development under section 35.

New subsection (1b) will provide that a development that is assessed by a relevant authority as being a minor variation from complying development may be determined by the relevant authority as complying development in any event and assessed accordingly.

New subsection (1c) will provide that if a proposed development meets all but 1 of the criteria for complying development, it must be assessed as such and the balance of the development will then be assessed as merit development. However, subsection (1d) will make it clear that subsection (1c) will not prevent a relevant authority from deciding not to grant development plan consent on account of its assessment of the balance of the development and under subsection (1e) this provision will not apply if the development, from an overall perspective, falls within a category of non-complying development.

6—Amendment of section 37—Consultation with other authorities or agencies

This amendment relates to cases where an application is refused, or conditions are imposed, on account of a direction of a prescribed body under section 37. Under the current provisions of the Act, the prescribed body is constituted as a party to any appeal. The amendment will provide that the prescribed body will be the respondent to any appeal and the relevant authority may, on application be joined as a party to the proceedings, if the relevant authority has been directed to refuse an application. If an appeal relates to a condition that has been imposed at the direction of a prescribed body, both the prescribed body and the relevant authority will be respondents to the appeal.

7—Amendment of section 38—Public notice and consultation

These amendments basically serve 3 purposes.

Firstly, it will now be possible for the regulations to assign various forms of development to Category 1 or Category 2 with the effect that the assignment by the regulations will prevail over any inconsistency with the relevant Development Plan unless the regulations provide otherwise.

Secondly, the regulations will determine which forms of development will be Category 2A (compared with the amendments made by section 10 of the Development (Assessment Procedures) Amendment Act 2007).

Thirdly, in the case of a Category 1 development, the Act will provide that the relevant authority must not, on its own initiative, seek the views of the owners or occupiers of other land in connection with deciding whether or not to grant or refuse development plan consent.

8—Amendment of section 39—Application and provision of information

The amendments will establish various rules associated with the extent to which a relevant authority may request information with respect to certain categories of development. Another amendment will 'stop the clock' for the time within which a decision on an application must be made by the relevant authority if the applicant requires additional time to address various issues associated with the application.

9—Amendment of section 41—Time within which decision must be made

An applicant will be able to serve a notice on a relevant authority that has not decided an application that relates to a development that is a complying development within the prescribed period. In such a case, it will be taken that the relevant authority has refused the application and, subject to the regulations, the relevant authority will be required to refund the application fee.

10—Amendment of section 88—Powers of Court in determining any matter

This is a consequential amendment.

Debate adjourned on motion of Hon. S.G. Wade.