DA vs Complying Development in NSW: Choose the Right Approval Path Before You Buy

The approval pathway can change the time, cost and risk of a property project. In NSW, investors often hear that a proposal can be approved as complying development, but that claim needs to be tested against the specific site and design.

What Is Complying Development?

Complying development is a fast-tracked approval process for proposals that meet every relevant standard. A council or accredited certifier can assess eligible work, but the pathway is not available simply because a housing type is generally permitted in the zone.

The land, proposed use, design and documentation must all satisfy the applicable code. Heritage controls, environmentally sensitive land and other exclusions can remove the pathway.

When Is a Development Application Needed?

A development application, or DA, is assessed on its merits by the consent authority, usually the local council. A DA may be required where the site is constrained, the design falls outside complying standards or the proposed development has impacts that require a fuller assessment.

A DA can allow more site-specific judgment, but it may also involve additional reports, requests for information, design changes and a longer holding period.

Why the Difference Matters to Feasibility

Approval assumptions affect consultant costs, finance, holding costs and the time before construction can start. If a feasibility assumes a fast complying pathway and the site later requires a DA, the delay can materially reduce the margin.

Before exchange, ask a planner or certifier to confirm:

• whether the proposed use is permissible
• which code or planning instrument applies
• whether the land is excluded from complying development
• which design standards must be met
• what reports and certificates will be required
• whether a DA should be allowed for in the downside scenario

TPC Takeaway

Do not choose the pathway that makes the spreadsheet look best. Confirm the pathway the property and proposal can actually use, then price the site using a realistic approval program.

The strongest deals remain workable when the approval process takes longer or costs more than the ideal case.

General information only. Planning controls and approval pathways change and vary between properties. Obtain independent planning, legal, financial, tax and construction advice before purchasing or developing property.