A research report by the Productivity Commission has singled out New South Wales’ planning system as inefficient and anti-competitive.
According to the report, NSW had the highest residential infrastructure charges imposed on developers between 2009-10, at $37,300 per lot for greenfield developments.
Moreover the report found that NSW appears to have particular difficulty in establishing cooperative state-council relations.
In the state over 220 local and state statutory instruments provide the bases for referrals. In contrast, all of South Australia's referral requirements are contained in one location (its planning legislation).
"NSW clearly stands out as the state that is cursed with Australia's worst planning system," Urban Taskforce’s Aaron Gadiel said.
"Whether it's 'Part 3A' in NSW, 'priority development projects' in Victoria or the work of the Urban Land Development Authority in Queensland, there is clearly a need for state government leadership in the planning process," Mr Gadiel said.
"Without, local councils are free to block development to satisfy the demands of their existing residents, at the cost of the broader community's need for housing and well-located jobs."
Mr Gadiel said that the findings of the report would help the push for a more flexible planning system.
"The community cannot continue to bear the huge social and economic costs being imposed by the current approach," he said.