Planning reform – retail space needed in the best spots for consumers

Planning regulations create uncertainty, delays and costs which must ultimately be borne by consumers. To date, planning reform has concentrated on improving the timeliness of government approvals for residential developments. Yet, business concerns have not received the same attention.   

There is a desperate need for more retail space in Australia. It is estimated that Sydney alone needs an extra four million square metres of retail space by 2031 – that’s 50 per cent more than what it has now. It’s pleasing to see that NSW Government has responded to retailers’ concerns by undertaking a parliamentary review of the NSW planning system.

Part of the problem is that planning regulations usually confine retail to a limited number of distinct retail zones rather than allowing development in areas of most need. We believe that retail centres should be integrated with residential, commercial and industrial areas to reduce travel times, and create convenient, mixed use areas.  

ANRA is also concerned that planning controls can inhibit competition in the marketplace. Sections of the Environment Planning and Assessment Act allow for an application to be rejected if it competes with a business in a centre – this is clearly uncompetitive. ANRA believes that restrictive out-of-date planning laws could be pushing up the price of retail goods.  

ANRA welcomes the Federal Government’s commitment to refer planning reform to the Council of Australian Governments.