A new report commissioned by the Property Council of Australia’s Residential Development Council has found that fixing inefficiencies in the approval processes of major housing projects could unlock $360 million in economic benefits, and go some way towards easing the pressure on housing prices.

The report, titled 'Cutting the costs: Streamlining state agency approvals', examines major project approval systems around Australia.

“A continuous pipeline of supply is essential if we are going to tilt the balance firmly back in favour of homebuyers,” said Andrew Whitson – President of the Residential Development Council and Stockland’s CEO - Residential.

Property Council Chief Executive Ken Morrison said reforming planning approval processes is a central part of the solution on housing affordability.

“Mapping the inconsistencies and inefficiencies of major project approval systems across the country puts a spotlight on the need for change,” said Ken Morrison, the Property Council’s Chief Executive.

“State agency approval systems largely remain slow and complex – requiring developers to navigate multiple referrals and review points.

“We are needlessly adding to the time, cost and red tape of new housing – and these are baked into the price of new housing.”

The report benchmarks states against key design elements of good planning systems, namely:

• The need for a single point of assessment on applications
• Referrals being limited to agencies with a statutory role
• Referrals should be for advice only
• Direction should only be given where it avoids the need for a separate approval process
• Strict timelines for responses and approvals need to apply and agencies should specify requirements in advance 

The report claims that Queensland's system, known as SARA (State Assessment and Referral Agency, is "the benchmark", though it could be improved. 

“Most other states are a long way from the mark – and crucially, the nation’s biggest market, NSW, has one of the worst systems in the country," said Morrison.

Click here to read the report 'Cutting the costs: Streamlining state agency approvals'.

Read more about housing supply and affordability in Australia:

Land supply at heart of affordability challenge

Affordability is improving, and first-home buyers are back in the market

Has Sydney become too expensive for its citizens?