Western Australia – New State Development Act
Western Australia’s State Development Act 2025 (WA) (Act) received royal assent on 19 December 2025, with the majority of provisions coming into force on 18 February 2026. Aimed at providing for the coordination, facilitation and promotion of state-significant development, the Act orients the strategic vision of Western Australia towards a future where opportunities for industrial, strategic and economically significant developments are captured and expedited.
The Act focuses on accelerating development through the following two major pathways:
- Facilitating specific “Priority Projects.”
- Coordinating the development of entire precincts for “State Development Areas.”
To support achievement of the above, the Act establishes a new office of the coordinator general (Coordinator General) to identify and oversee priority projects and state development areas, as well as to provide advice and make recommendations to the Minister of State Development (the Minister) in relation to them.
Priority Projects
As stated in the Act’s second reading speech, the government seeks to increase the competitiveness of Western Australian industry by prioritising projects in the following:
- Critical minerals processing facilities.
- Naval shipbuilding.
- Large-scale renewable energy projects.
- Net-zero hubs for green metals.
Though the scope of priority projects in the Act is not confined to specific industries, and requires only that the project has strategic or economic significance to the state, the state’s industrial focus is reinforced through the Act’s prohibition on designating purely residential developments as priority projects. Projects designated by the Minister as a priority project will receive fast-tracked approvals, strategic recognition and coordinated engagement and support across government.
The naval and industrial focus of the Act aligns with Australia’s participation in the AUKUS security partnership with the United Kingdom and the United States, particularly Australia’s acquisition of conventionally armed, nuclear-powered submarines (each, an SSN) and the development of the infrastructure, technical capabilities, industry and workforce necessary to operate a sovereign SSN fleet. This accelerated development trajectory is further bolstered by the Cook Labor Government’s entry in October 2025 into a landmark Australia-US agreement supporting critical minerals and rare earths, enhancing cooperation and investment to diversify Western Australia’s mineral supply chains and manufacturing sectors.1 Modification orders may be issued to modify how certain provisions of a designated Act apply to a priority project, streamlining approvals. Priority projects may also gain access to several coordination mechanisms that may be exercised by the Coordinator General to ensure efficient delivery: due regard notices, time frame notices and joint decision notices.
Modification Orders
The Minister may, with the approval of the Premier, make a modification order providing that specified provisions of a designated Act do not apply, or apply with specified modifications, in relation to the making of a decision for a priority project.
There are around 40 designated Acts that these modification orders may impact, including the Planning and Development Act 2005, the Biodiversity Conservation Act 2016 and the Heritage Act 2018, with some exclusions.
In making a modification order, the Minister must consider it appropriate to do so because, in the Minister’s opinion:
- The making of an order will prevent or reduce duplication of statutory or administrative processes or requirements that apply to the priority project or to a part of the priority project.
- Having regard to the purpose of the affected designated Act and the object of this Act, the making of the order will not prevent the priority project or part of the priority project from being effectively regulated under law.
Noncompliance by a proponent for the priority project with any conditions set out in a modification order is an offence, punishable by a AU$100,000 fine and a daily penalty of AU$5,000 for each day during which the offence continues.
To rein in the potentially broad and controversial effects of a modification order, the following checks and balances apply:
- Consultation with each affected public authority and the proponent for the priority project prior to the making of an order.
- A modification order cannot have the effect that a key regulatory authorisation that would otherwise be required in relation to a priority project is not required.
- A modification order cannot exclude or modify the application of a provision of a designated Act, to the extent that it relates to an assessment under a bilateral agreement or a process that the Commonwealth minister administering the Environment Protection and Biodiversity Conservation Act 1999 (Cth) has decided to use under section 87(1).
- All orders are to be tabled in Parliament and subject to disallowance processes.
Due Regard Notices
The Minister may give due regard notices to a public authority responsible for making a decision regarding the implementation of a priority project. A due regard notice requires the relevant responsible authority in making that decision to have due regard to a set of considerations specified by the Minister.
A due regard notice therefore allows for ministerial elevation of the importance of particular matters within a public authority’s decision-making process. Despite this, the notice cannot itself permit an authority to consider matters outside the scope of matters it may have regard to under the designated Act.
Due regard notices may not be given to the Environmental Protection Authority or Heritage Council of Western Australia, nor to another minister without consent.
Time Frame Notices
The Minister may also accelerate decision-making by issuing time-frame notices to a relevant public authority making decisions under a designated Act or the Aboriginal Heritage Act 1972. A time-frame notice requires that the responsible authority perform the designated function within a certain time period, which must not be less than 20 business days after the day on which the notice is given.
As there are around 40 designated Acts under the Act, the scope of decision-making public authorities that may potentially be issued a time-frame notice is broad. An extension on the designated time frame may be granted by the Minister on application by the responsible authority.
A time-frame notice may not be given to another minister without consent.
Joint Decision Notices
The Minister may issue joint decision notices, requiring decisions to be made jointly between the public authority under a designated Act and the Minister or the Coordinator General. Upon the issuing of such a notice, the responsible authority must consult, and if possible agree with, the relevant coordination authority on the designated decision to be made. If agreement cannot be reached, the matter may be referred to the Minister and the responsible minister for the responsible authority or otherwise to the Premier for final determination.
A decision made under this process will be valid as if it were made by the responsible authority under the ordinary procedure applying under the designated Act. Revocation or variation of the joint decision is prohibited without consultation with the relevant coordination authority.
A joint decision notice cannot be given to the Environmental Protection Authority, Heritage Council of Western Australia, Western Australian Planning Commission or another minister without consent.
State Development Areas
State Development Areas (SDAs) are designated precincts identified to support Western Australia’s economic and industrial growth. These may include renewable energy precincts, industrial circular economy hubs and project hubs supporting industry clusters. An accompanying State Development Area Plan (SDA Plan) will outline the strategic direction for the nominated area, including setting out the following:
- Economic, environmental and social considerations.
- Intended precincts, developments and subdivisions in the plan area.
- Infrastructure and services required to support the plan area.
Projects undertaken in an SDA will be assessed by a public authority with regard to the SDA Plan. In doing so, the government hopes to create investment-ready areas, giving clearer signals to industry and investors.
Despite this, the Minister may give a public authority written notice exempting the public authority from the requirement to have due regard to an SDA Plan in making decisions under a designated Act.
A newly operational SDA does not affect the application of any improvement scheme or planning scheme applying to that area under the Planning and Development Act 2005 or another written law at the time of operation.
Next Steps
The Act came into operation on 18 February 2026 following the publication of the State Development Act 2025 Commencement Proclamation 2026 in the Government Gazette, save for sections 115–117 amending the Petroleum Legislation Amendment Act 2024, which are to be commenced at a later date.
As of the date of this article, no priority projects or SDAs have been designated.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm's clients.