TBB Reacts: Metropolitan Region Scheme Changes

Author

Cassie Barrow
Associate

06 Sep 2024

In this TBB Reacts, we provide a summary of our understanding of the changes proposed to the Metropolitan Region Scheme

Last month, the State Government introduced a new Planning and Development (Metropolitan Region Schemes) Bill 2024 proposing changes to modernise the over 60-year-old Metropolitan Region Scheme (MRS) text. TBB Associate, Cassie Barrow, breaks down the key changes proposed including our thoughts.

Modernisation of the MRS is underway with the Minister for Planning tabling the Planning and Development Amendment (Metropolitan Region Scheme) Bill 2024 (MRS Bill 2024) on 8 August 2024. The MRS Bill 2024 includes a number of changes to the MRS text, broadly:

1. Changes to development approval requirements under the MRS.
2. Legitimising District Structure Plans and outlining the process for preparation, assessment and determination.
3. Introducing new region planning tools and associated processes:
   • Special Control Areas.
   • Region Planning Scheme Policies.
   • Regional Infrastructure Plan Areas.

We understand these changes are the first of a number of amendments to come. The focus of this first tranche is to modernise the text only (no zoning changes) and bring the MRS in line with the other region schemes, being the Greater Bunbury Region Scheme (GBRS) and Peel Region Scheme (PRS). The changes introduce a number of new planning instruments applicable to the metropolitan region, that enable the Western Australian Planning Commission (WAPC) to have a greater role in strategic, region level planning. The GBRS and PRS can provide a guide as to how the MRS changes may impact stakeholders and the new approval requirements.

Snapshot of the changes

1. Changes to development approval requirements under the MRS

Existing situation:

• Land use and development on zoned land requires approval under the MRS by default, in addition to the relevant Local Planning Scheme. Most development approvals in Perth are actually two approvals – one under the MRS and one under the Local Planning Scheme. This is known as a dual approval and is why an MRS Form 1 needs to be submitted as part of a development application. There are some circumstances where separate approval is required from the WAPC – mostly for sites abutting regional reserves.
• In 2020, Regulations were amended to exempt a number of categories of development from approval such as granny flats, additions to grouped dwellings and changes of land use in commercial centres. However, because the Regulations only apply to Local Planning Schemes, the situation arose where planning authorities were still requiring applications pursuant to the MRS because the exemptions had not been extended through to this level.

What’s changing:

• The changes seek to ‘flip’ the approach – meaning development is exempt from MRS approval by default and approval is only required under the MRS if it’s outlined explicitly in a resolution made by the WAPC.
• A Draft Notice of Resolution has been published for the purposes of consultation and outlines the WAPC will retain decision-making authority in particular circumstance. This includes developments proposals considered to be of State or regional significance or in the public interest, developments within key industrial areas and development in and around Parliamentary House in the Perth CBD. More information can be found here.

Our thoughts…

• Majority of development applications are no longer required under the MRS but may still be required under the relevant Local Planning Scheme.
• This will resolve the bizarre situation where some local governments are requiring development applications for minor works that are exempt under Local Planning Schemes.
• The reforms do not introduce new exemptions but do remove the requirement for dual approval. Due to Local Planning Scheme approval requirements, this won’t result in a time saving but will mean one less form is required as part of a development application.

... will mean one less form is required as part of a development application.

2. District Structure Plans (existing tool, legitimised)

Existing situation:

• District Structure Plans (DSP) – a tool for strategic coordination of land use and infrastructure that is not limited by local government boundaries – have been used by the DPLH/WAPC for several decades. Examples include East Wanneroo DSP, and the Alkimos-Eglington DSP and they have been prepared by or on behalf of private landowners previously. So, this is not a new planning instrument.
• The legitimacy of DSPs has been questioned as there is no explicit head of power in the current planning framework.
• There is no transparency or accountability of the process for preparing/amending/revoking, assessing and determining DSPs as there is no explicit procedural provisions. They kind of just… happen…

What’s changing:

• An explicit head of power is being provided in the MRS, along with procedural provisions.
• The procedural provisions have been modelled on the structure plan process. Similar requirements and processes can be expected, although there are a few noteworthy differences that we have observed:
  • Only the WAPC can prepare a DSP (although they may appoint a consultant to prepare on their behalf).
  • No timeframes for assessment and determination. Our experience is that these documents take significantly longer to prepare, assess and determine, when compared to a Structure Plan

Our thoughts…

• These changes will facilitate DSPs becoming a legitimate planning instrument and may lead to the preparation of a greater number of DSPs.
• Enables DSPs to be given more weight in the assessment and decision-making process associated with various planning proposals, such as Local Structure Plans and Local Development Plans, as well as development and subdivision proposals.

Enables DSPs to be given more weight in the assessment and decision-making process… 

3. New region planning tools

 Existing situation:

• Region Planning Scheme Policies are not available in the Perth region. State Planning Policies and Planning Codes are the key tools available to outline planning requirements that apply to the entire State, a particular region such as Perth or a particular area (e.g. State Planning Policy 2.2 – Gnangara Groundwater Protection only applies to the Gnangara mound groundwater protection area within the northern suburbs of Perth).
• Special Control Areas (SCAs) are a tool available under Local Planning Schemes, but not under the region planning scheme. SCAs are a tool to facilitate bespoke planning requirements over a particular area to deal with constraints or to facilitate an outcome (e.g. unique development controls, restricted land uses etc.)
• Regional Infrastructure Area Plans (RIPA), or equivalent plans, are generally prepared by other Government Departments, such as the Department of Jobs, Tourism, Science and Innovation and generally outline the upgrades required to facilitate future growth, but do not outline associated planning controls and/or contribution arrangements. This tool is not formally recognised through the planning framework, and whilst can be considered through an assessment process, they do not carry much weight.
• There is no ability for a Development Contribution Area (DCA) or Development Contribution Plan (DCP) to be prepared and administered under the MRS to enable the sharing of costs towards infrastructure upgrades amongst beneficiaries. Under Local Planning Schemes, DCA’s can be established and DCP’s can be prepared and administered by the relevant local government.

 What’s changing:

• Provides for the creation, amendment and review of Region Planning Scheme Policies by the WAPC. No Regional Planning Scheme Policies are proposed to be introduced as part of the changes.
• The establishment of SCAs can occur under the region scheme (in addition to the Local Planning Scheme). An example of when a SCA may be appropriate is over a buffer area associated with a regional reserve such as a port.
• Provisions that enable the identification of a RIPA under the MRS. RIPAs intend to provide for the co-ordination of infrastructure planning across local government areas and also provides a mechanism for additional planning provisions and developer contribution arrangements to be introduced into the region scheme eventually.
• The changes to the MRS do not create any SCAs over particular areas, any Regional Planning Scheme Policies, or any RIPA’s and only provides the enabling provisions. SCAs and RIPAs are to be introduced through a typical region scheme amendment process and will require advertising and consultation.

Our thoughts…

• These new tools reflect the WAPC broadening its toolkit to have a greater role in State-led strategic planning initiatives.
• It’s expected that Regional Planning Policies will be similar to State Planning Policies but apply only to a particular area within the Perth region. Several current State Planning Policies apply to only the Perth region, or a particular area. We may see some current State Planning Policies that apply specifically to the metro region (e.g. SPP 2.2), be turned into Region Planning Policies. This is likely to be an administrative process that is not subject to advertising.
• RIPA’s will enable the WAPC to plan for infrastructure upgrades and effectively create developer contribution areas, which may extend across multiple local government areas. Legitimising this tool is welcomed and is envisioned to bring an improvement in regional infrastructure planning, coordination and delivery.
• There are no details included that outline the process for establishing, amending or removing a RIPA and determining the additional planning provisions and/or developer contribution arrangements. It is unknown what extent of information is required, including whether a Development Contribution Plan or the like needs to be prepared and advertised. It is unclear how development contributions will be administered and who will undertake this role. It is understood that this detail has not been determined at this point in time and may be the subject of new Regulations in the future.
• Like any development contribution arrangement, it is critical that any upgrades and cost-contribution arrangements are properly justified and consider the matters outlined in State Planning Policy 3.6 Infrastructure Contributions, namely need and nexus. It is critical for transparency and accountability to be maintained by the administrating authority throughout.

These new tools sees the WAPC broaden its toolkit to have a greater role in State-led strategic planning initiatives that apply to the Perth region

If you would like to discuss the implications for any of your projects or find out more information, please get in touch with your usual TBB contact, or you may contact Cassie  directly.

View more as provided by DPLH here

Read the MRS Bill 2024 here