The State Development Bill 2025 (WA) – What could it mean for your project?

The State Development Bill 2025 was introduced to WA Parliament on 10 September 2025. The Government has referred to the Bill as "Bold new legislation…to unlock strategic precincts, fast-track approvals for major strategic projects around the State and maintain Western Australia as the strongest economy in the nation". For those who have not had a chance to review the Bill, we have considered and summarised its key components below, along with our preliminary views on whether the Bill has the potential to live up to the Government's statements if it is passed in its current form.

Preliminary views of the State Development Bill

Our preliminary view is that the Bill introduces some broad powers and mechanisms that could be useful to remove some of the inefficiency, duplication and unconstrained timeframes that have hampered WA project approvals frameworks in recent years. However, the Bill places a significant level of discretion in the hands of the State Development Minister and the Premier (who happens to currently be the same person), both in terms of the projects the framework will be applied to, and the detail of how each mechanism could be applied in a specific case.

The extent to which any individual project proponent will find the Bill's mechanisms useful in practice, will be determined in the first instance by the Minister's views as to what constitutes strategic and economic significance for WA, and how many projects the Government is willing to bring within the framework. Based on the limited media statements and comments released to date, the implications of the Bill may be limited for proponents who are not intending to build a critical minerals processing plant or a large-scale windfarm, or contributing to WA becoming the largest naval shipbuilding and maintenance hub in the Southern Hemisphere, at least initially. However that is a matter for the exercise of discretion, rather than a necessary outcome of the Bill. The proposed framework could be applied more broadly if the Government chooses to exercise the discretion to declare priority projects more broadly.

The other matter of significant discretion is the content of any notice or order issued in relation to a priority project, or improvement plan prepared for a State Development Area. The list of 'designated Acts' in relation to which a notice or order can be issued, directing how or when a specific statutory function should be exercised, is quite extensive. It includes most of the Acts that we regularly deal with in our broad WA projects practice. And the scope of each individual power has broad potential application. For example, the Bill is the only (proposed) law that we are aware of that is not made subject to the Environmental Protection Act 1986 (WA) in the event of inconsistency. While none of the powers are unlimited, and regard must always be had to the object of the Bill (including social and environmental considerations), each mechanism provides the State Development Minister (or the Coordinator General under delegation in some instances) with a broad direction-giving discretion, should they choose to exercise it. As well as an absolute discretion to refuse to exercise any of the powers. Political will is likely to play a significant role in the operation of the Bill, if it be passed and implemented.

Summary of key changes proposed by the State Development Bill

The Bill formalises the current Coordinator General (CG) role in statute with investigation, advisory, facilitation, coordination and monitoring functions. Some but not all of the Minister's powers under the Bill can also be delegated to the CG.

Designated "priority projects" may be able to take advantage of new Ministerial powers to direct the exercise of decision-making and other functions under specified Acts, including:

• due regard notices

• timeframe notices

• joint decision notices

• modification order

State development areas (SDA) can be declared, with an improvement plan and improvement scheme.

What kinds of projects does the Bill apply to?

Priority projects

Only projects that are "of strategic or economic significance" to the State or an area of the State can be designated a priority project.

The kinds of projects referenced in Parliament and Government media statements are large-scale critical minerals, renewable energy, energy transition (green iron), naval shipbuilding and multi-user infrastructure projects. However, there is scope within the broad criteria set out in the Bill for smaller projects to be designated, if the Minister for State Development and the Premier are satisfied as to the project's significance.

The criteria proposed in the Bill are:

• The Minister must have regard to the object of the Bill –

"to provide for the coordination, facilitation and promotion of State-significant development [ie. industrial development, development of infrastructure, or other development or activities, of strategic or economic significance to the State] while taking into account social and environmental considerations".

• The Minister must be satisfied that the project is –

"of strategic or economic significance to the State or to an area of the State, including because of any infrastructure, capital investment, employment opportunities, economic benefits or social benefits that the project may provide".

The reference to "including" means this list is not limited and the Minister may be satisfied that other matters fall within the meaning of "strategic or economic significance".

• The project cannot be a wholly residential development.

Projects in a State Development Area

When deciding whether to declare an SDA, the Minister must have regard to the object of the Bill and consider whether the declaration would: facilitate economic development, strategic industrial development or necessary infrastructure; protect, conserve or enhance the environment; or otherwise promote the object of the Bill.

What are the key mechanisms of the framework proposed in the Bill?

Modification orders

This element of the Bill is likely to be the most controversial. A modification order (section 49) can amend or exclude the operation of provisions of specified Acts (and their Regulations) for the purposes of a priority project.

The relevant Acts (referred to a designated Acts) are listed in Schedule 1 and the list is quite long. It includes the Environmental Protection Act 1986 (WA) (EP Act), other environmental legislation, Planning and Development Act 2005 (WA) (PD Act), Heritage Act 2018 (WA), Main Roads Act 1930 (WA), legislation relevant to mining and petroleum projects, services and public authorities, and a number of other Acts, but not the Aboriginal Heritage Act 1972 (WA) (AH Act).

A modification order can only be issued by the State Development Minister with the approval of the Premier. However the criteria appear fairly broad and ultimately rest on the Minister's opinion:

• It is enough if the Minister considers the order to be appropriate because it will prevent or reduce duplication of statutory or administrative processes or requirements relevant to the priority project.

• Alternatively, it would also be enough for the Minister to consider an order appropriate because, having regard to the object of the Bill and the purpose of the Act proposed to be modified, "the making of the order will not prevent the priority project or the part of the priority project from being effectively regulated under law".

• A modification order cannot have the effect that a key regulatory authorisation (meaning an approval or the grant of an interest in land under a designated Act) is no longer required. However, it is stated to be permissible for a modification order to exclude or modify the grounds, purpose, process, requirements or criterion applicable to the grant of the authorisation. The line between these two things may not be entirely clear. We expect that in the context of the Part IV assessment process under the EP Act, for example, this means that a modification order could not stop a proposal from being referred or amend the 'significant effect' referral and assessment threshold. However, on preliminary review it may be possible to use a modification order to remove the restriction on making planning decisions in section 41, or perhaps to remove or limit some of the EPA's assessment powers in section 40, such as its broad discretion to determine the form, content, timing and procedure of its review and unlimited information gathering power.

• Any requirement that relates to a bilateral or accredited assessment process under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) cannot be excluded or modified. Whilst this provision could limit the operation of modification orders where EPBC Act approval is also required, it is practically necessary to ensure the State assessment can be relied on for the purposes of the Federal approval process.

The Government has stated that the intent of this process is to streamline approval processes rather than to bypass or compromise essential safeguards.

Modification orders can be made subject to conditions, which are enforceable. Any order would also be subject to disallowance by Parliament, so an element of Parliamentary oversight is provided for.

Timeframe notices

A timeframe notice (section 37) issued by the Minister (or the CG under delegation) can dictate the timeframe for the exercise of certain functions. Unlike the other notices, which can only be issued in relation to the Schedule 1 designated Acts, this power can also be exercised in relation to the AH Act. The example given in Parliament was the use of a timeframe notice to dictate the timing for the Department to consider and decide on an AH Act section 18 consent application.

The notice can specify a time period for the making of any decision that "could cause or allow a priority project to be implemented" or the exercise of any function that relates to such a decision. This scope is likely to capture a lot of decisions and associated functions.

A timeframe notice cannot alter or avoid mandatory statutory processes with minimum timeframes (eg. advertising processes), so these will need to be taken into account when specifying a time period in a notice (subject to a relevant modification order also being made).

Unlike some of the other notices, a timeframe notice can be given to the Environmental Protection Authority (EPA), the Aboriginal Cultural Heritage Committee or the Heritage Council, however not to a Minister making a decision personally unless the Minister agrees.

The ramifications of a public authority's failure to comply with a timeframe notice are unclear. Whilst a decision-maker's delay before the notice time period could perhaps form the basis of a later judicial review on procedural grounds, it is difficult to imagine circumstances in which such proceedings would assist a proponent.

Joint decision notice

The issue of a joint decision notice (section 40) by the Minister (or the CG under delegation) could have significant ramifications for the making of a statutory decision under one of the Schedule 1 Acts (other than a decision of the EPA, the Heritage Council or the Western Australian Planning Commission). Ultimately, if a joint decision notice applies and agreement cannot be reached between the Public Authority decision-maker and the State Development Minister, the Bill provides for circumstances in which the Premier can make the final decision for the purposes of the designated Act.

A joint decision notice will provide for the appointment of a coordination authority (the Minister or the CG) and the decision procedure, and the object of the Bill will become a relevant consideration in the decision. Once issued, the coordination authority must be consulted by the public authority in relation to the decision and if possible the two parties should agree. If they cannot agree, the decision must be referred to the State Development Minister and the Minister responsible for the public authority, and if they can't agree, the Premier will make the final decision.

Due regard notice

A due regard notice (section 34) is likely to have a more intangible impact that the other notices/orders. The Minister (or the CG under delegation) can issue a notice requiring that specified matters be given due regard by a decision-maker.

The notice cannot require consideration of a matter that does not already fall within the decision-maker's powers, or require that exercise of a discretion in a certain way. Working within the existing power, a due regard notice can elevate the importance of certain matters, making otherwise discretionary considerations mandatory considerations.

A due regard notice cannot be issued to the EPA, the Heritage Council, or a Minister making a decision personally without that Minister's consent.

Due regard notices – like timeframe and joint decision notices – must be published in the Government Gazette but are not subsidiary legislation or open to Parliamentary disallowance.

State Development Areas

Where an SDA is declared over land by the State Development Minister (with the approval of the Premier), planning and decision-making for projects within the SDA will be guided by an improvement plan. The SDA declaration can also authorise the Commission to prepare an improvement scheme. Improvement plans and schemes are existing instruments under the PD Act and it looks like the SDA instruments will apply in much the same way for the purposes of that Act, but with the oversight of the CG and potentially broader application:

• An SDA plan can address matters beyond planning.

• Although any existing planning schemes will still apply to the land, the Minister can request that the relevant region or local planning scheme be amended to ensure consistency with the SDA plan.

• All public authorities making relevant decisions under designated Acts (not just planning decisions) must have due regard to an applicable SDA plan.

The CG is intended to have oversight over development and activities in an SDA but the CG's powers are to guide rather than to make decisions. The CG will advise on the making of SDA declarations. Copies of relevant applications are to be given to the CG, the CG can issue an information and consultation notice requiring a public authority to consult the CG on relevant matters, and the Commission must consult with the CG before performing functions under the PD Act relating to an improvement plan.

Most of the notices and orders cannot be applied to SDA projects, with the exception of a due regard notice, which can be issued in relation to function being exercised in relation to an SDA.

If you have any questions about the State Development Bill 2025, or any other matter relating to the approval or regulation of projects in WA, please contact Lucy Shea.