NSW Budget Backs AI to Speed Up Housing Approvals and Tackle Delays

NSW Government Allocates Budget for AI to Streamline Housing Approvals

The NSW Government’s 2025–26 Budget has set aside millions to boost innovation in the housing sector, with artificial intelligence emerging as a key tool to address one of the largest challenges: the slow development approval process.

While the $1 billion Pre-sale Finance Guarantee has drawn most attention, a quieter but significant shift is occurring at the local council level. Several councils are trialling AI systems like DAISY (Development Application Information System) to speed up planning approvals. Wingecarribee Shire Council has already implemented DAISY, and 20 other councils have applied for grants to adopt this technology.

AI’s Role in Accelerating Planning Processes

Peter Schravemade, Managing Partner of REACH Australia and New Zealand, highlights the potential of AI to reduce inefficiencies in government systems. “Councils are taking ages to do anything, particularly in planning,” he said. “Anything that helps speed up the process would be beneficial.”

He acknowledges the cautious approach councils take with new technologies due to privacy and risk concerns. AI systems can make errors, which raises questions about their compatibility with government workflows. However, Peter believes that with proper oversight and transparency, these risks can be managed effectively.

Even if AI tools were used simply to summarise development applications and highlight key points for planners, it would improve efficiency compared to manually reading the entire document.

Budget Support for Housing Innovation

The current Budget includes $20 million for emerging technology commercialisation and $4 million for new construction methods, allocated through the Housing Innovation Network and Innovation in Construction Fund. This funding supports trialling and scaling innovations like AI to ease housing delivery challenges.

Pressure for Planning System Reform

Mike Hermon, Executive Director of Development at the Housing Industry Association, stresses the urgency for state and territory governments to overhaul planning regulations. “All state and territories governments need to implement major reforms now, to stem the tide of unaffordable housing,” he said.

He adds that existing planning regulations have become so complex they obstruct rather than facilitate new housing developments. With AI tools now entering the mix and increased calls for reform, these technologies may become essential in helping NSW meet housing targets.

What This Means for Real Estate and Construction Professionals

The integration of AI in planning processes could lead to faster approvals and smoother project workflows. For professionals in real estate and construction, understanding how these tools work and their potential impact on timelines is crucial.

Adopting AI-assisted planning could reduce wait times, improve accuracy in application assessments, and ultimately accelerate housing delivery. Staying informed about these developments and the available AI training opportunities can provide a competitive edge.

• Explore AI courses designed for real estate and construction professionals at Complete AI Training.
• Learn more about AI tools improving government and planning workflows at Complete AI Training’s AI Tools Directory.

As NSW moves towards integrating AI into its housing approval system, the sector stands to benefit from increased efficiency and innovation. Keeping pace with these changes will be key for anyone involved in development and construction.