Red-Tape Slashed to Fast-Track 377,000 NSW Homes

One small change could speed up the time it takes to get homes on the ground by months. 

As Australia continues its pursuit of building an ambitious 1.2 million new homes over the course of five years  – a task it is not on track to hit – much has been made of the so-called “red tape” causing slow-downs and setbacks that get in the way of construction.

But rarely is that red tape explained in more detail. 

A recent change in NSW provides a perfect example of the type of regulation that developers are often calling on to be reformed.

The NSW government has announced temporary groundwater licence exemptions that will reportedly fix a bottleneck that has been adding months to new home building across the state.

This change is expected to streamline construction, cut costs and support the delivery of 377,000 new homes by 2029.  

Previously, developers required a licence to remove more than three megalitres of water during construction, a process known as infrastructure dewatering, which safely removes groundwater from construction sites.  

In coastal areas such as Sydney, where groundwater tables can be higher, water can funnel into work sites, tunnels and foundations. To ensure construction on projects can proceed safely, this water needs to be removed.  

The NSW government has announced temporary groundwater licence exemptions to speed up construction of new homes. Picture: Getty

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According to the Property Council of Australia, obtaining this license has become a hurdle many apartment builders face, as it delays projects and leads to cost blowouts.  

Now, with the new exemptions in place, developers working on eligible projects can bypass the lengthy approvals process.   

NSW minister for water Rose Jackson said the change is one example of removing “pointless delays” in getting homes built.  

“We’re making it easier to start building the homes and infrastructure our communities need, while keeping strong environmental protections in place,” Ms Jackson said.  

“Tackling the housing crisis means backing practical solutions that get homes built across NSW.” 

The exemptions, which will be in effect until June 2029, specifically apply to coastal construction developments, essential infrastructure projects and water infrastructure projects developed by private bodies with approved schemes under the Water Industry Competition Act of 2006.  

Although eligible works are automatically exempt from needing a licence, developers must still comply with relevant water management rules, including obtaining water supply work approval and accurately reporting water intake. 

“We asked NSW Government agencies to work together to find smarter solutions to fast-track the housing and infrastructure we desperately need,” Ms Jackson said.  

“Importantly, there are no changes to the existing approvals processes, which thoroughly assess all projects and can place appropriate caps on dewatering on a case-by-case basis. 

“These exemptions are a great step forward, addressing industry concerns and getting homes and critical infrastructure built faster.” 

The exemptions are expected to support the delivery of 377,000 new homes by 2029. Picture: Getty

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The Property Council of Australia said the reforms would help speed up construction of apartments and reduce red tape in meeting Australia’s housing supply needs.  

“This is a smart, timely reform that tackles one of the most frustrating and unnecessary delays in the housing delivery process,” Property Council NSW executive director Katie Stevenson said.

“By removing the licensing requirement for short-term dewatering, the government is helping apartment builders get out of the ground faster, reduce risk, and keep projects viable. It’s a practical step that will have a real and immediate impact on supply.”  

The reforms are part of the NSW government’s priorities made in the Housing Approvals Reform Action Plan announced in February 2025.  

“Anyone building apartments in Sydney will tell you that once you get your DA, the clock starts ticking – and delays in dewatering approvals are one of the biggest frustrations in the system,” Ms Stevenson said.  

“Today’s announcement means apartment builders can get on with the job faster, with more certainty and less red tape. It’s exactly the kind of smart reform we need to accelerate housing delivery.” 

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