A Paradigm Shift in NSW Development Cost Estimation: Anticipated Changes Forthcoming on 4 March 2024

The present dissertation aims at dissecting, analysing, and explicating the significant reforms put forth by the NSW Government, which are slated to come into force by 4 March 2024. These reforms pivot on the concept of “Estimated Development Cost” (EDC), marking a major shift from the erstwhile methods of computing development costs in New South Wales (NSW). Upon comprehensive analysis, it is evident that these reforms are primed to redefine the present planning system, making it more robust, simpler, and adding much needed transparency.
The NSW Government’s decision to introduce an EDC-based cost estimation approach intuits a departure from the //existing// methods, namely ‘cost of development’ and ‘capital investment value’. This reform, in essence, stems from recommendations put forth by the Independent Commission Against Corruption’s Operation Dasha report. The commission decisively aimed at reinforcing transparency into the planning system, thus mitigating the risk of corruption. The adoption of EDC is anticipated to aid these objectives, representing a strategic move by the NSW Government.
Significantly, one of the major attributes where the EDC will be put to use is in the computation of fees for varied development categories. These categories encompass local, regional, and state-significant developments, shedding light on the government’s broader vision. The EDC’s application bearings, coupled with the sweeping changes to the ‘cost of development’ and ‘capital investment value’, reflects the overarching intention of safeguarding transparency and simplification in the planning system.
As a necessary turn of events, the NSW Government also seeks to amend the Environmental Planning and Assessment Regulation 2021. By instating a new definition for EDC within the amended regulation, the NSW Government lends credence to the element of transparency. The government acknowledges that a similar modification will be instituted within pertinent state environmental planning policies, again focusing on streamlining the cost estimation process while desisting corruption.
Furthering the reform initiative, the NSW Government’s collaboration with professional bodies pertaining to quantity surveying represents a key component. By focusing on upgrading the governance policies related to cost estimation, the NSW Government expects an upsurge in the quality and consistency of cost estimates. This decision is well-rooted in forethought, creating a robust mechanism that, while enhancing the overall process, drastically reduces discrepancies and establishes a unified system for all players involved.
With the enforcement date fast approaching, it becomes imperative to laud the NSW Government’s proactive measures aimed at ensuring better governance. By adopting the novel EDC approach, the government seeks to establish a prudent, transparent, and systematised process of planning and execution at local, regional, and state levels.
The intended alterations place a considerable focus on the public’s knowledge of the planning and development system. In effect, the proposed reforms furnish the citizenry with the necessary insight into cost estimations, thereby driving community engagement, and upholding transparency.
Drawing the analysis to a close, the forthcoming changes, facilitated by the introduction of the EDC concept, undeniably signify a new era for planning systems in NSW. The government’s significant strides towards improvements in governance, cost estimation and reducing risks attest to its commitment towards consolidating transparency and corruption reduction within the planning system. It is worth observing how these impending reforms pan out, but it is clear that the NSW Government is setting a new precedent.
To conclude, given the breadth of these planned changes, including their impact on different development types and levels, these reforms arguably posit NSW as a potential benchmark for development planning and execution techniques worldwide. The push for a new era, starting from 4 March 2024, will essentially echo the NSW Government’s diligence towards ensuring transparency within the system, thereby showing a formidable strategy to combat corruption and bring about structural improvements. These changes will thus not only transform the workings of the NSW planning system but also pave the way for other governments to recognise, learn, and emulate.