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4528ProducvityCommissionPerformanceBenchmarkingofAustralianBusinessRegulax1aonRoleofLocalGovernmentasRegulatorOverviewApril2011pagexviii29ProducvityCommissionPerformanceBenchmarkingofAustralianBusinessRegulax1aonRoleofLocalGovernmentasRegulatorCh.12PlanningzoninganddevelopmentassessmentJuly2012page425hpwww.pc.gov.au__dataassetspdf_x13le000511855315-local-government-chapter12.pdf30ProducvityCommissionPerformanceBenchmarkingofAustralianBusinessRegulax1aonRoleofLocalGovernmentasRegulatorChapter7BuildingandConstrucx1aonApril2011page251hpwww.pc.gov.au__dataassetspdf_x13le000511853510-local-government-chapter7.pdfPART5RESOLVINGPLANNINGRESPONSIBILITIESDEVELOPERSCONCERNSWITHCOUNCILSThecomplexityanduncertaintythatmarkNSWx19sdevelopmentplanningandapprovalprocessesaredeterringbuildersfromaddressingthehugehousingbacklogthatexistsinSydney.Theyareex12ecvelyonago-slowstrikebecausethedevelopmentapplicaonlogjamisresulnginprohibiveplanningdesignandlandholdingcosts.ArecentAustralianProducvityCommissioninquiryconx13rmedsuchcomplaints.28ItfoundthatplanningsystemsinAustralianciessux12erfromx18objecvesoverloadx19whichhasbeenincreasingoverme.TheCommissioncalledforx18broadandsimplelandusecontrolstoreduceredtapeenhancecompeonhelpfreeupurbanlandforarangeofusesandgiveagreaterroletothemarketindeterminingwhattheseusesshouldbex19.AccordingtotheCommissionx19s2012report29themaincomplaintsofthebusinesscommunityaboutplanningandzoningwereLocalgovernmentregulaonofplanningzoningandDAacviesisasignix13cantsourceofexcessiveandunnecessaryburdens.MostbusinessconcernsareaboutthedirectandindirectcostsarisingfromtherezoningandDAprocess.Costsassociatedwithgainingapprovalforaproposeddevelopmentincludeaccessingandunderstandingrelevantinformaonrequestsforexcessiveandunnecessaryinformaontosupportapplicaonsuncertaintyarisingfromthedecision-makingprocessassessmentfeesandinfrastructurecharges.Otherbusinessesindicatedthatcostscanarisefromtheon-goingimpactofpoorplanningandDAdecisionsthroughtheimposionofexcessiveandunnecessarydevelopmentcontrolsandconsentcondions.PlanningzoningandDAregulaoncanalsocreatelostbusinessopportuniesthroughholdingcostsassociatedwithmedelaysandrestricvezoningthatprohibitscertainbusinesstypes.ThemainbusinesscomplaintsconcerningbuildingandconstruconwereLocalgovernmentsimposearangeofcostsonbusinessesthroughregulaonofbuildingandconstruconacvity.Incombinaonthesecostscanhaveamaterialimpactonbuildingx13rms.ThemaincostsimposedstemfromLocalgovernmentsmandangstandardsbeyondthoseintheBuildingCodeofAustraliaBCADelaysinassessingandprocessingbuildingapplicaonsCondionsplacedonconstruconsiteacvityInspeconregimesusedtoassesscomplianceforbuildingandplumbingworkOx15eninconsistentfeesandchargesforassessingbuildingapplicaons.REMEDYINGCOUNCILDEFICIENCIESTheProducvityCommissionskeyx13ndingsonbusinessregulaonplanningzoninganddevelopmentassessmentsinits2011researchreportonthesubjectareworthnonginregardstolocalcouncils30Thesuccessoflocalcouncilsindeliveringmelyconsistentdecisionsdependsontheirresourcesaswellastheirprocesses.Itisalsoinx14uencedbytheregulatoryenvironmentcreatedbystategovernmentsx14inparculartheclarityofstrategiccityplansthecoherenceofplanninglawsandregulaonsandhowwelltheseguidethecreaonoflocallevelplansandtheassessmentofdevelopmentapplicaons.Signix13cantdix12erencesinstateandterritoryplanningsystemsincludethedegreeofintegraonbetweenplanningandinfrastructureplansandhowcapablythestatesmanagetheirrelaonshipswithandguidancefortheirlocalcouncils.Signix13cantdix12erencesbetweenjurisdiconsareevidentforx13businesscostsx14suchasthemedianmetakentoassessdevelopmentapplicaonsandtheextentofdeveloperchargesforinfrastructurex13theamountoflandreleasedforurbanusesx13theprovisionmadeforappealsandalternaveassessmentmechanismsx13communityinvolvementininx14uencingstateandcityplansindevelopmentassessmentandinplanningschemeamendmentssuchasrezoning.Compeonrestriconsinretailmarketsareevidentinallstatesandterritories.Theyarisefromexcessiveandcomplexzoningthroughtakinginappropriateaccountofimpactsonunestablishedbusinesseswhenconsideringnewcompetorproposalsandbyenablingincumbentobjectorstodelaytheoperaonsofnewdevelopments.