State Development Coordination and Facilitation Bill

Second Reading

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (17:08): I move:

That this bill be now read a second time.

I seek the leave of the chamber to insert the second reading explanation and explanation of clauses in Hansard without my reading them.

Leave granted.

South Australia continues to build on its global leadership position in clean energy, harnessing our state's rapid progress to a remarkable 70% renewables in its electricity mix—on track to 100% by 2027. This provides a solid platform, supported by successive governments, to not just decarbonise our grid and our economy—but also to shape the jobs of the future.

Whether it's for critical minerals processing, gigawatt-scale data centres powered by clean energy, or green manufacturing, iron and steel—South Australia has what the world needs. And importantly, this State has a chance to leverage this unique position to decarbonise its own economy and that of other jurisdictions—all while providing stable, well-paying jobs for South Australians.

At the same time, we're also building an unprecedented pipeline of housing projects to deliver more homes, more quickly for a growing number of South Australians, keeping the Australian dream of owning your own home alive for current and future generations.

And making sure we continue to provide this state's growing population with the unmatched quality of life that South Australia is known and envied for, means that we must complement this with all the infrastructure and services that growing populations need—from trunk transport or water infrastructure, health or education facilities through to social infrastructure and green space.

Responding effectively to the national housing crisis and transitioning our economy while growing it are both considerable challenges. But they are challenges we are confronting head on.

Both issues are giving rise to more, larger, more complex and more urgent developments—all of which need clarity on suitable sites and approvals. And this must occur at a faster pace than ever before, driven by the urgency of housing demand and by global investment and supply chains pivoting to where they can access the resources they need for the future—gigawatt-scale clean energy, critical minerals, skilled people, and so forth.

Through its recent inquiries into this state's regulatory framework and renewables competitiveness, the South Australian Productivity Commission noted that we must take bold action to seize the transformational opportunities ahead of us, and avoid falling behind in how we regulate large and complex projects.

The same undeniably also applies to how this State responds to the national housing crisis and seeks to seize the intergenerational economic opportunities ahead of it in other areas such as defence.

Concrete examples of the scale, complexity and urgency of anticipated development include:

Large housing developments and new communities that trigger the need for new trunk and enabling infrastructure;

Critical minerals processing facilities;

Net zero industry hubs for green metals, manufacturing or fuels, connected to key inputs located elsewhere, such as clean energy and minerals, via multi-user infrastructure corridors:

Gigawatt-scale data centres, powered by clean energy;

Infrastructure and facilities critical to AUKUS and its supply chain.

This Bill seeks to address these challenges through a bold but responsible approach—an approach based on sensible systems reform to improve proactiveness, coordination and efficiency to enable a place-based approach, while preserving our regulatory standards and environmental protections.

This Bill also includes specific reforms announced as part of our Housing Roadmap, designed to help deliver more homes, more quickly.

This includes provisions to improve and streamline infrastructure schemes, bringing them in line with other Australian jurisdictions; to master plan and deliver new communities more quickly; and to facilitate public and private enabling and utilities infrastructure to bring those large housing developments to life—which as we have seen over the last years is a critical but often overlooked part of the broader solution to the ongoing national housing crisis.

Governments throughout Australia and right across the world are in similar positions and are equally looking to reform their planning and approvals systems in response.

In June 2024, New South Wales established a Coordinator-General function to coordinate the delivery of key priorities in renewables, housing, and the Western Sydney growth area.

Queensland continues to refine its long-standing Coordinator-General model—achieving successes in critical minerals, green manufacturing and infrastructure corridors—and governments in both the Northern Territory and Western Australia are understood to be preparing similar reforms.

The Australian Government is also preparing and consulting on a central regulatory coordination function for major transformational projects, a national 'front door' for transformational projects, which aligns with the reforms contained in this Bill.

And other jurisdictions right across Europe and the US are similarly introducing clean energy go-zones and regulatory efficiency measures.

It is no surprise, therefore, that industry and experts alike are asking governments to show leadership, do their bit, and pull out all stops to deliver well-paying jobs in future industries, to decarbonise our economy, and deliver affordable homes for South Australians to thrive in.

The message is clear, consistent, and compelling: government has a role to play in making it happen.

A role in providing earlier-stage certainty and predictability. In delivering improved coordination and efficiency right across the planning and regulatory system. And in de-risking development by taking a proactive role in identifying suitable areas for development, rather than a reactive role.

And those things are exactly what this Bill will help deliver. But it will do so the right way.

We are looking to provide certainty and efficiency, and put in place a proactive, place-based approach to planning and regulation; not one that speeds things up at the expense of our environment, perhaps our greatest asset and which makes South Australia such a wonderful place to invest, do business, and most importantly of all—to live.

Indeed, a range of industries expressed their needs on this very clearly: they are looking for proactive regulation that assists them in developing the right projects in the right places—reducing risk, uncertainty and therefore delays, while being sensitive to what our environment needs, and what our community expects.

And that's consistent with what independent experts recommend—including leading research institutions from across the nation and right here in South Australia as well.

In summary, this Bill will provide for:

Improved coordination across our planning and regulatory system;

The ability to proactively apply our existing planning and regulatory processes;

Pathways to take a place-based approach to de-risking critical developments through 'state development areas'—environmentally and economically suitable 'go zones', proactively assessed by regulators, where such development can be facilitated at pace while meeting our existing planning and regulatory requirements;

Streamlined provision of enabling infrastructure to get more large housing developments built more quickly;

Increased capacity and efficiency; and

Greater influence over development and environmental outcomes through conditions and other mechanisms.

Given the economy-wide nature of the challenges we are facing, particularly with decarbonisation, this Bill proposed a designation approach, based on economic, environmental and social considerations on a needs-basis, instead of a system of limited sectoral application. This will ensure a contemporary, fit-for-purpose and future-proofed framework.

Newly proposed mechanisms would be able to be applied to projects declared on the basis of a 'Primary principle', which requires consideration of anticipated social, environmental and economic outcomes and impacts on both the state and the local level.

This is akin to similar tests of 'state significance' already in use in the Planning, Development and Infrastructure Act 2016, with mandatory requirements to contemporaneously publish such decisions to ensure transparency.

This will result in balanced decision-making and careful consideration of not just the state interest, but local communities' interests as well. Importantly, this principle promotes balance, rather than prioritising one element over the others; it would operate alongside—not instead of—any substantive decision-making requirements flowing from other Acts; and it would also apply to other key functions provided for by this Bill.

To ensure independent decision-making and greater capacity for system-wide coordination, a new, dedicated authority is proposed to administer these newly proposed functions. This Coordinator-General's Office will be a more contemporary version of the models that exist in other Australian jurisdictions, adapted to a South Australian context and taking a more collaborative approach.

To ensure efficiency, a general duty to reasonably cooperate with this new authority is proposed to apply to existing state authorities, similar to what exists in relation to the Planning Commission.

And to achieve a suitable balance between board-based decision-making and efficient delivery, this new body would take the form of a four-person board with the ability to decide complex matters collectively while also providing it with the flexibility to set procedures for the delegation of less complex matters to individual members.

CGO's members—including its chair—will be strongly focused on the key challenges of boosting housing supply and decarbonisation, including the transformational growth opportunities it presents.

However, given the highly specialised expertise required for the timely delivery of AUKUS, this Bill also proposes that one member with relevant expertise and experience to AUKUS be appointed, to ensure CGO is required to ensure it has the capability to support the uniquely complex and important endeavour that is AUKUS in an well-informed, rigorous yet efficient manner.

Finally, to maintain the highest levels of transparency and accountability for a new entity with a comparatively broad remit, a strengthened disclosure of interests regime is proposed for CGO—one that goes above and beyond the requirements that apply to other statutory authorities.

Three types of project or area declarations would apply—coordinated projects, designated projects and State development areas.

The Coordinator-General's Office would declare coordinated projects based on the application of the aforementioned Primary principle. Upon declaration, the Office would be able to set, vary and align timeframes for statutory processes and decisions by other state authorities, subject to mandatory prior consultation with the relevant regulatory entity.

In addition to standardising and providing assurance to applicants, there are instances where this could also be used to streamline timeframes, where this is feasible.

Minimum timeframes of no less than one month are provided for, and the provision is deliberately designed to require prior consultation and stop short of imposing standardised, one-size-fits-all timeframes as are in place elsewhere, as we know this would give rise to unrealistic, high-risk or otherwise irresponsible outcomes.

The Minister responsible for this Bill would be able to declare designated projects, again based on the application of the Primary principle, but also on a test of 'state significance' akin to a similar test that already exists in the Planning, Development and Infrastructure Act 2016. This declaration would enable the Coordinator-General's Office to apply the aforementioned power to align, vary or set timeframes, as well as a suite of other functions.

This includes a call-in provision, a condition-making ability, a review function, the ability to perform certain assessment processes under the Planning Act, provisions to develop infrastructure, acquire easements or land, and also for the Minister to instruct CGO to take over responsibility for a development from another state agency.

Combined, these provisions are designed to improve system-wide coordination and efficiency, provide the ability to control and manage outcomes and impacts, and streamline the delivery of enabling infrastructure.

Each of these powers are deliberately drafted to require prior mandatory consultation with relevant entities and, critically, are designed to preserve the rightly rigorous standards and requirements that apply under existing legislation. This is explicitly provided for in the relevant sections.

The most significant new concept introduced by this Bill is that of State development areas. These would serve as de facto 'go zones' for certain types of development, based on appropriately rigorous regulatory assessment of the area and following mandatory public consultation.

This is a tried and tested concept supported by industry, regulators and environmental stakeholders—one that is already operating successfully interstate and overseas as a way to de-risk and streamline development responsibly, by focusing on identifying and pre-planning genuinely suitable areas.

Provisions governing the establishment of State development areas include a range of appropriate exclusions designed to ensure our protected areas such as National Parks remain protected.

Further provisions relating to State development areas provide for the creation of a State development area plan, governing issues such as zoning of land, land use, infrastructure siting, identification of environmental matters and ensuring cumulative impacts are considered and well-managed.

They would also set out the formulation of economic, environmental and social objectives for the area and guidance on how the various functions within this Bill would be used to achieve those objectives.

This Plan would require mandatory public consultation and subsequent publication in the Gazette to ensure upfront clarity among the community and proponents alike regarding the intended activities and arrangements within these areas, as well as the ability to influence them, as is appropriate.

Another key feature of State development areas would be the ability for the Coordinator-General's Office to work with regulators to carry out pre-assessments of proposed developments within them, which, once done, would enable more rapid approvals based on the rigorous regulatory process having been done upfront, thereby reducing uncertainty, risk and scope for delay.

This process would enable our statutory processes to be conducted proactively while maintaining existing statutory requirements, strengthening the role of existing regulators while delivering significant benefits to proponents.

Provisions relating to State development areas are designed to lend themselves well to the development of complex precincts and corridors, including those involving multiple proponents—for example net zero industry hubs connected to their key inputs such as renewables generation and minerals extraction.

It is important to note that no change is proposed in relation to land access pathways and multiple simultaneous land use under existing legislation and policy settings. Proponents will continue to seek this under existing legislation, with any relevant processes remaining unchanged.

This Bill furthermore applies existing functions to enter and acquire land and develop infrastructure to the newly proposed authority, primarily to assist with infrastructure provision. These provisions apply or mirror clauses that already exist in the Highways Act and Land Acquisition Act, and do not change the process, rights, entitlements or recourse currently available.

As with the large majority of planning and regulatory legislation, this Bill also includes mechanisms of last resort for one-off modifications or exemptions.

This is made subject to appropriate limitations and exclusions, but—in contrast to existing Acts—to mandatory consultation, to the requirement to prepare and furnish Parliament with relevant reports, and importantly—and again, in contrast to most existing Acts –also allows for modification instead of exemption, and will be subject at all times to full Parliamentary scrutiny, in the same way Regulations are.

This will deliver a standardised, better-informed approach than many existing such arrangements, which generally neither include scope limitations nor consultation or reporting requirements, and do not always offer the ability to take the more proportionate approach of modification or provide Parliament with the ability to exercise its scrutiny through disallowance.

While this Bill shows ambition, its focus is quite deliberately on getting our own house in order. We are acutely aware that there is a lot that can be done to improve coordination and proactiveness within government—but it is important to avoid putting pressure on our communities and Aboriginal communities in particular. In many instances, any such efforts would be ineffective or even counterproductive.

That's why we have not included the Aboriginal Heritage Act within the scope of this Bill, and why we have included provisions that require upfront consideration and comprehensive, genuine and early-stage consultation and collaboration, which will be of paramount importance to the Coordinator-General's Office.

Finally, this Bill proposes a number of consequential amendments.

Firstly to the Planning Act—logical amendments designed to bring South Australia's infrastructure schemes in line with the scope of their interstate counterparts, while making them less burdensome and time-consuming to establish.

Secondly the Urban Renewal Act, to ensure that Act's development and implementation frameworks can operate seamlessly alongside the newly-proposed mechanisms in this Bill, and particularly to ensure cross-reference to the newly proposed Coordinator-General's Office and State development areas.

Combined, the proposed provisions will improve our state's ability to apply its planning and regulatory processes in a more proactive, place-based and efficient manner, with improved system-wide coordination. Importantly, it will do so while continuing to adhere to the high standards and protections that South Australians rightly expect.

The government recognises that while these reforms are predominantly procedural, their scope is broad and their potential impact considerable.

Accordingly, the government conducted a rigorous multi-month consultation throughout the majority of last year, involving more than 55 stakeholder meetings and follow-up meetings, meetings with more than 30 organisations, industry groups, independent experts, civil society and interest groups and regulators. During the public consultation stage, engagement was broadened to include tens of thousands of members of the South Australian community via the YourSAy platform, with more than 1,200 people accessing the consultation directly.

The government received, listened and responded to a wide range of feedback. In fact, we took extra time after consultation to ensure we truly get the balance between fostering development while protecting our environment right. As a result of this comprehensive and collaborative approach, the large majority of recommendations made were able to be adopted in the Bill that is being introduced to Parliament here today.

I would like to thank each and every one of the individuals and organisations who took the time to help shape this important and necessary reform initiative.

This Bill represents a sensible next step towards facilitating development that delivers high-value investment and jobs in future industries. It will support timely and responsible decarbonisation in a way that grows the economy.

And this Bill represents a further acceleration of South Australia's response to the ongoing housing crisis. By helping to turn large land releases into living and breathing neighbourhoods as quickly as possible—particularly by ensuring the enabling infrastructure is delivered without delay—this Bill will help get more South Australians into their own homes sooner.

And finally, this Bill ensures we are on the front foot and ready to facilitate the infrastructure and developments we need to deliver on AUKUS—keeping Australia secure and local industries thriving.

I commend this Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Interpretation

Definitions are inserted for the purposes of the measure.

4—Primary principle

This clause provides for the primary principle, namely, that if the Minister or CGO performs a prescribed function in relation to a project or a function under any other Act in connection with the performance of a prescribed function in relation to a project, the Minister or CGO must have regard to the economic, social and environmental outcomes of the project (for the State as a whole and in the locality of the project), in addition to any relevant objects or principles under the other Act.

Part 2—Coordinator General's Office

Division 1—Coordinator General's Office

5—Establishment of Coordinator General's Office

The Coordinator General's Office (CGO) is established as a body corporate.

6—Constitution of CGO etc

CGO consists of 4 members nominated by the Minister and appointed by the Governor. The member appointed to be the principal member may use the title 'Coordinator General'. One member must have knowledge, expertise or experience relating to AUKUS.

7—Removal from office

This clause provides for the removal of members from office.

8—Casual vacancies

This clause provides for vacancies in membership of CGO.

9—Ministerial direction

This clause provides for the Minister to give directions to CGO. Certain limitations and procedures relate to the giving of directions.

Division 2—Functions etc

10—Functions generally

The functions of CGO are provided for.

11—Cooperation by designated authorities

This clause provides that a designated authority must seek to cooperate with CGO in the performance of CGO's functions and in the performance the designated authority's functions (insofar as may be appropriate and relevant in the circumstances).

Division 3—Related matters

12—Procedures

This clause provides for the procedures of CGO's meetings.

13—Minister's representative may attend meetings

This clause provides for a representative of the Minister to attend meetings of CGO.

14—Vacancies or defects in appointment of members

This clause makes provision in relation to vacancies or defects in appointment of members of CGO.

15—Disclosure of relevant interests

Members of CGO must disclose their relevant interests.

16—Remuneration

Provision is made in relation to remuneration of members of CGO.

17—Staff

Provision is made in relation to the staff of CGO.

18—Delegation

A delegation power of CGO is included.

Part 3—Project coordination and facilitation

Division 1—Preliminary

19—Interpretation

Certain interpretative provisions are inserted for the purposes of the Part, including designated Act, designated decision, designated function and disallowable notice.

20—Effect of Part etc

This clause provides that (except as otherwise provided by or under the measure) the Part (including a notice or other instrument under the Part) has effect according to its terms and despite any other Act or law of the State.

Division 2—Project declarations and establishment of State development areas

21—Coordinated projects

CGO may declare that a project is a coordinated project.

22—Designated projects

The Minister may declare that a project is a designated project.

23—Establishment of State development areas

The Governor may establish a specified area of land as a State development area.

Division 3—Functions—projects generally

24—CGO may vary or specify time periods relating to certain functions

CGO is authorised to publish a notice to vary a period of time applying to the performance of a function (including the making of a decision) under a designated Act in relation to a relevant project or determine that such a function is to be performed within a specified period of time.

Certain limitations and procedures relating to a notice under the provision are provided for.

Division 4—Functions—declared projects

Subdivision 1—General

25—CGO may call in designated function

CGO is authorised to call in a designated function (which is defined) for CGO to perform in accordance with the provision. If CGO calls in a designated function, the function may be performed by CGO (in accordance with the provision) as if the function had been duly delegated to it by the original entity (which is defined). A notice calling in a designated function may modify or exclude the application of a designated Act (or a provision of a designated Act) to the extent that CGO considers necessary for the purposes of performing the designated function (having regard to the primary principle under the measure).

26—CGO may impose, amend etc conditions on certain decisions

CGO may give a decision maker for a designated decision (which is defined) a notice directing the decision maker to impose such conditions on the designated decision as CGO thinks fit.

A notice under the provision applies despite any provision under the designated Act regulating or limiting the conditions to which a designated decision may be subject or the process or manner in which such conditions may be imposed or amended.

Certain limitations and procedures relating to a notice under the provision are provided for.

27—CGO may review certain decisions

This clause provides for CGO to review a designated decision (by written notice given to a decision maker for the designated decision within 10 days after the making of the designated decision (or such longer time as is approved by the Minister)).

Certain limitations and procedures relating to a notice under the provision are provided for.

Subdivision 2—Particular functions relating to State development areas

28—State development areas—functions generally

This clause provides for CGO's functions generally in relation to a State development area.

29—State development areas—planning functions

This clause provides for CGO to publish a State development area plan setting out certain planning matters for the State development area.

Subdivision 3—Interaction with other Acts

30—Division of land etc in State development area

This clause provides that relevant authority (within the meaning of the Planning, Development and Infrastructure Act 2016) must accept that a proposed division of land in a State development area satisfies the conditions specified in section 102(1)(c) or (d) of that Act to the extent that such satisfaction is certified by CGO. It also provides that any requirement imposed by a relevant authority under Part 15 Division 2 of the Planning, Development and Infrastructure Act 2016 must be consistent with any provision of a State development area plan under section 29(1)(c).

31—Impact assessed development

This clause provides for the Minister to declare that a declared project or development that is part of a declared project is deemed to be development that falls within the category of impact assessed development for the purposes of the Planning, Development and Infrastructure Act 2016. The clause also provides for other matters relating to such impact assessed development.

32—Assessment of essential infrastructure and State agency development

This clause provides for the Minister to make certain declarations relating to essential infrastructure and State agency development under the Planning, Development and Infrastructure Act 2016.

33—Applications for prescribed approvals under Mining Act 1971 or certain designated Acts

This clause provides for the Minister to declare that an application for a prescribed approval (which is defined) in relation to a declared project may be made to CGO (instead of the person to whom the application would otherwise be required to be made under the Mining Act 1971 or another relevant designated Act). Such a declaration has the effect of substituting references to the Minister under the Mining Act 1971 or other relevant designated Act with references to CGO for the purposes of the application for the prescribed approval.

Subdivision 4—Expedited approval where regulatory requirements satisfied

34—Definitions

Certain definitions are set out for the purposes of the Subdivision.

35—Statement of regulatory requirements for facilitated projects

This clause authorises CGO to prepare and adopt a proposal for a project in a State development area for the purposes of promoting development in the State (defined as a facilitated project). CGO may direct a responsible entity (being the entity responsible for granting an approval under a designated Act in relation to a facilitated project) to prepare a statement of regulatory requirements in relation to the facilitated project. After complying with the procedures under the provision, the responsible entity must publish the statement and (if it considers that the facilitated project meets the requirements of the designated Act) issue a certificate (a facilitation certificate) to that effect and publish it in accordance with any requirements of CGO.

36—Expedited approvals where facilitation certificate issued

In connection with the preceding provision, this clause provides that, if a responsible entity has issued a facilitation certificate for a facilitated project, a person may apply to the prescribed authority (which is generally CGO, but in certain circumstances is the Minister responsible for the measure or another Minister designated by the Governor) for an approval under a designated Act in relation to the facilitated project in accordance with the section. Subject to certain requirements and procedures under the provision, the responsible entity is authorised to grant the applicant an approval under a designated Act in relation to the facilitated project.

Subdivision 5—Other functions

37—CGO may be authorised to undertake essential infrastructure works

This clause provides for the Minister to authorise CGO to undertake essential infrastructure works for the purposes of a declared project.

38—Entry onto land etc

This clause provides for a person authorised in writing by CGO to enter and occupy land for a designated purpose (which is defined).

39—Compulsory acquisition of land

This clause provides for CGO to acquire land (with the consent of the Minister) and applies the Land Acquisition Act 1969 to the acquisition.

40—CGO may take over State projects

This clause provides for CGO to take over State projects (which are defined).

41—Revocation of community land classification for land acquired

This clause provides for community land under the Local Government Act 1999 to be disposed of by a council, with the approval of CGO, in connection with the acquisition of the land for the purposes of a declared project.

Division 5—Other matters

42—Disallowable notices—protected areas and general environmental duty

Certain limitations are imposed on disallowable notices in relation to protected areas and in respect of the general environmental duty under section 25 of the Environment Protection Act 1993.

43—Disallowable notices—consultation and publication

Certain requirements are imposed in relation to consultation on, and publication of, disallowable notices.

44—Disallowable notices—Parliamentary scrutiny

This clause provides for Parliamentary scrutiny of disallowable notices.

Part 4—Miscellaneous

45—Limitation on time allowed for appeal or review of decisions

This clause provides for a limitation on the time allowed for an application for appeal against or review of a decision made in connection with the operation or administration of the measure.

46—Certain applicants to provide reports, information or material

The clause authorises CGO to require regulated applicants (who are defined) to provide reports, information or material.

47—Provision of information

The clause authorises CGO to require the provision of certain information by a designated authority.

48—Confidentiality

CGO is prohibited from disclosing certain information except in certain circumstances.

49—Amendment of notices etc

The clause provides for the amendment of a notice published in the Gazette under the measure.

50—Recovery of costs

The clause authorises CGO to recover, as a debt due from a proponent of a project, reasonable costs incurred by CGO in relation to the performance of a function for the purposes of the project. CGO must obtain the consent of the proponent to do so.

51—Annual report

This clause requires CGO to prepare an annual report.

52—Regulations and fee notices

A standard regulation-making power is provided for.

Schedule 1—Designated Acts

This Schedule sets out the list of designated Acts for the purposes of the measure.

Schedule 2—Disclosure of relevant interests

This Schedule provides for the disclosure of relevant interests by members of CGO.

Schedule 3—Related amendments

This Schedule makes related amendments to the Planning, Development and Infrastructure Act 2016 and the Urban Renewal Act 1995.

Debate adjourned on motion of Hon. H.M. Girolamo.

At 17:09 the council adjourned until Tuesday 29 April 2025 at 14:15.