Strategic planning vs statutory planning: what’s the difference?

It’s easy to get confused about where to start with town planning. It can be complicated, but one of the first things to understand is that planning broadly operates across two key areas:
• strategic planning, and
• statutory planning.

These areas play different, but equally important, roles.

At a high level, strategic planning establishes the framework for how our cities, towns and communities should grow, change and adapt over time, whereas statutory planning applies that framework to individual sites or developments.

Strategic and statutory are closely connected, but understanding the difference (and how they interact) is key to understanding planning as a whole.

What is strategic planning?

Strategic planning is the longer-term, forward-looking side of the planning system. It seeks to answer the questions of what do we want an area to look like in the future, how do we want it to operate, and what planning framework do we need to get there?

It considers everything from where new homes and jobs should be and what infrastructure is needed, to how centres should look and operate, what areas need to be protected (think heritage and the environment), and what type and scale of development should be permitted.

Strategic planning is where you will hear terms like zoning, building heights, floor space ratio, density and planning controls.

Strategic planning isn’t a one-size-fits-all approach, and it can be undertaken at many different scales. A strategy might consider the future of an entire region, whereas a precinct plan or masterplan might focus on a particular community or individual development site. A landowner may also seek to change the planning framework of their site through a planning proposal or rezoning (in NSW) or a minor or major plan amendment (in the ACT).

The terminology and process also differ between jurisdictions.

In NSW, strategic planning is captured in environmental planning instruments (state environmental planning policies or SEPPs, and local environmental plans or LEPs), development control plans (DCPs), region plans, local planning documents (such as local strategic planning statements, or housing strategies), and masterplans/precinct plans.

In the ACT, the Territory Plan provides the core planning framework, supported by district strategies, district and zone policies, design guides and technical specifications.

While the terminology differs, the fundamental purpose is the same: strategic planning sets the direction and establishes the framework of how to get there.

What is statutory planning?

Once the planning framework has been established, statutory planning is where that framework is implemented for specific (or multiple) sites.

Statutory planning looks at whether a particular proposal is allowed to occur on a certain site, and if so, the conditions and requirements that apply to ensure (in theory) a balanced and contextually appropriate outcome is delivered.

Statutory planning is the part of planning most people are familiar with and involves seeking planning approval (or development consent) before undertaking development.

In NSW, this commonly means the preparation of a development application (DA) that is assessed by a consent authority. This consent authority is often the local council, but in some circumstances, it may be the State government (for example State Significant Development or State Significant Infrastructure etc.) or an independent panel. The consent authority will depend on the nature, scale, type and complexity of the proposal.

In the ACT, the development approval processes are similar, with applications being either assessed by the Territory Government or the National Capital Authority. The ACT’s leasehold land system adds an additional layer of complexity to the planning and development process.

In both jurisdictions, a proposal is assessed to determine how consistent it is with the applicable planning framework and whether it complies with relevant requirements. This process (development assessment) will typically consider zoning, development standards or assessment requirements (such as maximum building height and floor space ratio etc.), relevant plans and policies, built form and design controls and guidelines (such as setbacks, car parking, architecture, landscape areas etc.), likely environmental impacts and a range of other matters.

Again, while the terminology differs, the fundamental purpose is the same: statutory planning involves considering a development proposal against the planning framework established through strategic planning and determining whether and how it should proceed.

What are the key differences?

The key focuses and timeframes for strategic and statutory planning vary.

Where does strategic and statutory planning meet?

The best planning outcomes are usually the result of acknowledging that strategic and statutory planning are not stand-alone processes, but rather part of the same planning system.

Good strategic planning should lead to predictable, transparent and fair statutory planning outcomes.

A well-designed planning framework should give communities, landowners, developers and government a good understanding of what development is expected. It should provide enough certainty to support investment while still maintaining enough flexibility to respond to unique circumstances and innovation.

Additionally, statutory planning provides a real-world test of strategic planning. For example, if a planning control is repeatedly difficult to achieve, leads to unintended outcomes or prevents appropriate development altogether, it can indicate that the strategic planning needs to be revisited.

The relationship between the two is particularly important as NSW and the ACT both respond to significantly tricky challenges including housing supply, infrastructure delivery, changing community needs, environmental protection and sustainability.

When do I need strategic or statutory planning advice?

You may need strategic planning advice when determining the development potential of a site, investigating whether existing planning controls can deliver a desired outcome, seeking a rezoning or change to planning controls, preparing a precinct plan or masterplan, or developing a broader strategy or policy.

You may need statutory planning advice if you have a specific development in mind and need to understand the relevant planning controls, identify the appropriate planning approval pathway, prepare a DA, or navigate the development assessment and planning approvals process.

For many projects, the line between strategic and statutory is not clear. Preliminary planning and due diligence may show a proposal can proceed under the existing framework, or it may determine that a rezoning or change to planning controls is needed before a DA can progress.

This is why considering strategic and statutory planning together from the outset can help determine the most appropriate pathway and provide a clear route from concept to approval.

Navigating strategic planning and statutory planning in NSW and the ACT

Planning systems are complex, and achieving the right outcomes depends on the site, proposal, jurisdiction and desired outcome.

Gyde works across both strategic and statutory planning in NSW and the ACT, with significant experience spanning government and private sector projects. These projects range from due diligence, site investigations and strategic planning, through to the preparation of development applications, assessment and approvals.

Our strategic planning work focuses on considering the broader community, housing, environmental and infrastructure needs alongside local, State and Territory planning policies and priorities.

Our statutory planning work spans a wide range of development and approval pathways, supported by complementary expertise in urban design, social planning, heritage, data analytics, and communications and engagements.

Bringing all of this together helps us consider the bigger picture and determine what outcome we’re trying to achieve, which pathway will get us there and how we turn strategic vision into on-the-ground benefits.

At the end of the day, while strategic and statutory planning may perform different roles within the same system, good planning outcomes depend on getting both right.