The Minns Labor Government is further streamlining planning approvals, while making sure new homes and infrastructure are built to better withstand the extreme weather impacts and natural disasters caused by climate change.
A proposed Climate Change and Natural Hazards State Environmental Planning Policy (SEPP) introduces a clear, consistent planning framework for tackling current and future climate risks to help communities withstand future threats like bushfires, floods, coastal erosion, and urban heat.
The Planning System Reform Bill 2025 passed through parliament in November 2025 with almost universal support, enabling the most substantive changes to the Environmental Planning and Assessment Act 1979 in a generation.
The legislation historically made climate change resilience, housing delivery and proportionality objects of the act for the first time. However, under the current system, climate change and natural hazard requirements in planning decisions are scattered across multiple legislative and regulatory frameworks.
This fragmentation makes it harder for councils and consent authorities to assess risks clearly and confidently - leading to delays and uncertainty.
By bringing all decisions surrounding hazards like bushfires, floods, coastal erosion and urban heat together in the one SEPP, councils and consent authorities will have the tools to make risk-informed decisions to safeguard lives, property and the environment so that homes and infrastructure are planned and built out of harm's way.
The proposed policy will help councils and other consent authorities assess climate and natural hazard risks upfront and make decisions based on tolerable risk levels agreed by Government and communities.
As part of the exhibition, the NSW Government is seeking feedback on:
- An explanation of intended effect of the Climate Change and Natural Hazard SEPP
- Draft Climate Change Scenario Guidelines - climate scenarios for hazard planning.
- Draft Urban Heat Policy Statement - principles for building resilience to heat.
Alongside the proposed SEPP, two key resources have been released to support disaster recovery and planning:
- The Build Back Better Guiding Principles, which provide 5 guiding principles to help councils, planning authorities and the community recover from natural disasters, and;
- The Tolerable Risk Guideline, which outlines risk factors and provides guidance for incorporating tolerable risk into land use planning.
The proposed SEPP will apply statewide and replace the existing State Environmental Planning Policy (Resilience and Hazards) 2021.
The changes are part of a major overhaul of the State's planning framework aimed at making it faster, fairer and modern to speed up the delivery of homes, jobs and infrastructure.
The Climate Change and Natural Hazards - Explanation of Intended Effect is on exhibition from Tuesday, 17 February to Monday, 16 March. To have your say, visit the planning portal.
Minister for Climate Change Penny Sharpe said:
"The effects of climate change are already apparent from the severity and frequency of floods, fires and heatwaves.
"This policy ensures our homes, businesses and infrastructure are built smarter and safer to withstand the extreme weather impacts we know are coming."
Minister for Planning and Public Spaces Paul Scully said:
"This policy marks a major step toward smarter, climate-resilient planning for a safer future.
"We've seen the devastation caused by bushfires and flooding across our communities, and the impacts to families and local businesses cannot be ignored.
"We need to build homes and infrastructure in the right locations, so communities are resilient to future risks and natural hazards.
"This policy helps future-proof NSW against the challenges ahead by introducing a clear, consistent framework for climate and hazard planning."
