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The state is billing the new rules as a way to cut red tape, save money, and get new homes built faster.
The overhaul targets changes to the criteria of when a business case must be developed for government funding of infrastructure projects that support the delivery of housing, as well as health facilities or energy framework.
This will see the state:
- Increase the threshold for a business case on recurrent proposals from $10 million to $20 million.
- Allow lower-risk, lower-cost proposals (Tier 3 and 4) to have a lean business case or short-form assessment.
- Sharpen the purpose and content required in business cases.
- Support more work in-house to reduce overreliance on consultants.
NSW Treasurer Daniel Mookhey said that over the course of investigating the cost savings associated with these changes, the government discovered that had they been implemented five years prior, it would have eliminated the need to create more than 1,200 business cases.
He noted that for major projects, expensive and time-consuming work including detailed procurement plans, management plans and technical investigations will now be conducted following government approval for projects to proceed to this stage – instead of before, which could be a waste of money if the project is not approved.
“These reforms will see us continue to rely on thorough business cases for government decision making. But they’ll be adjusted to ensure that we make the cases that need to be made,” Mookhey said.
Property Council NSW executive director Katie Stevenson described the changes were welcome news for the property industry, and commended the government for getting “out of its own way”.
“This is the bold, decisive leadership we need to focus government resources on tackling the state’s most pressing priority – delivering more housing,” Stevenson said.
“Getting early and straightforward government approval before diving into detailed procurement and technical investigations will save time and bring much-needed certainty,” she added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
