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Unified approval system aims to lift housing productivity and reduce delays.
The Minns Government has outlined a major package of building law reforms designed to speed up housing delivery and establish a consistent approval pathway for NSW prefabricated and modular housing. The proposals form part of a broader productivity agenda aimed at lifting completions, improving regulatory consistency and reducing delays across the state’s housing system. (credit image: Wild Modular.)
The reforms focus on modernising approvals, removing duplication in legislation, and establishing clear, statewide rules for the manufacture, transport and installation of prefabricated homes. The Government argues that streamlined regulation is necessary if NSW is to meet its 2029 Housing Accord commitment of 377,000 homes.
Housing Minister Rose Jackson said the existing system is no longer fit for purpose. “For too long, NSW has been let down by building approvals systems that are slow, outdated and have not kept pace with the need for housing across our state,” she said. “These reforms will remove barriers to prefabricated and modular housing without compromising building quality.”
Statewide pathway for prefabricated building approvals
A key element of the package is a unified approval pathway for prefabricated homes. At present, prefabricated buildings fall under council assessment, creating inconsistency for suppliers and discouraging investment in modular manufacturing. The proposed changes integrate prefabricated building work into the same approval framework used for traditional construction, with mandatory compliance to the Building Code of Australia.
Building Commissioner James Sherrard said the reforms provide long-needed clarity. “These reforms will ensure all types of homes, whether they are built using traditional methods or modern methods of construction, are compliant with the Building Code of Australia,” he said.
The Government also proposes clear regulations covering the manufacture, supply and transport of modular buildings, with the aim of lifting consumer confidence and improving access to finance for modular projects.
Simplifying approvals to accelerate housing delivery
Beyond prefabrication, the reforms introduce measures to streamline the entire approvals process. These include removing duplication between planning and building legislation, improving certifier accountability and allowing minor variations during construction without returning to councils for approval. A single detailed design package for apartment buildings is expected to save an average of AUD $327,000 per project.
Industry groups have broadly welcomed the direction. UDIA NSW CEO Stuart Ayres said the reforms offer a clearer pathway for new forms of housing. “Manufactured homes and Land Lease communities must play an increasingly important role in tackling the housing crisis,” he said.
HIA and Master Builders NSW also expressed support, noting the importance of reducing red tape to encourage productivity and bring new homes to market faster.
The reforms are expected to be introduced to Parliament in 2026.
