To deliver ‘missing middle’ housing — secondary dwellings, multi-occupancy housing, townhouses, terraces and low-rise apartments in existing suburbs — the ACT Government this week introduced legislation to cut approval times for small-scale subdivisions; de-couple simple lease variations from development applications; and automatically entitle secondary residences (such as granny flats) on all residential leases.

Planning and sustainable development minister Chris Steel MLA introduced the Planning (Missing Middle Housing) Amendment Bill 2026 on Tuesday as part of the government’s project to deliver 30,000 new homes by 2030.

“This Bill will deliver faster approvals for missing middle housing for Canberrans,” Mr Steel said. “These reforms provide certainty and makes the overall planning process simpler so that proponents can get on and deliver more homes where people want to live.”

Small subdivision and consolidation development applications would no longer be considered ‘significant development’; assessment and approval timeframes would be cut from 60 days and two rounds of public notification to 30-45 working days.

All single-dwelling crown leases would have an automatic entitlement to build a secondary residence, such as a granny flat.

Changes to crown leases to add additional dwellings on a block would also become ‘exempt development’: a development application would not be required to change the lease cutting assessment time down to 10 days. The Bill does not change the requirement of a development application for design and siting of the additional homes.

“The reforms to crown leases are practical administrative changes that give Canberrans greater use of their land without compromising building quality,” Mr Steel said. “A DA won’t be required just to vary a lease to add a secondary or additional dwelling, which adds little value to the planning process.”

The construction industry welcomed the announcement.

Master Builders ACT CEO Anna Neelagama called it “a sensible, practical step” that would ensure Canberrans can build more homes without bringing the planning system to a standstill.

“Master Builders ACT has long called for changes to streamline approvals to avoid further delays in the planning system,” she said. This reform “strikes the right balance of ensuring new homes meet our standards while also providing a streamlined pathway for low-risk additional dwellings that are already allowed by the planning system”.

However, Master Builders said things were grim for the building sector: rising interest rates, global conflict, and supply chain crunch made residential construction risky.

As the ACT property sector contributes more than half the ACT Government’s own-source revenue, Master Builders argued the ACT Government should increase funding for skills; reduce taxes on the property sector; and reduce red tape.

“What is good for the construction sector is good for the ACT,” Ms Neelagama said. “We don’t want to jeopardise the development of further housing through unnecessary regulatory burdens, such as onerous property developer licensing requirements and exorbitant fees and charges for construction work.”

Property Council of Australia executive director Ashlee Berry said: “This is exactly the kind of practical reform the industry has been calling for.

“If Canberra is serious about lifting supply, the system must stop duplicating steps that add delay but no real value. Cutting approval pathways and simplifying lease processes is how you get more homes moving, faster.”

The Property Council has championed a similar reform agenda through its advocacy on missing middle housing, including its Unlocking 60,000 Homes work, its August 2025 submission on missing middle reforms, and the Capital Region Housing Summit in November last year.

“For more than a year, we have been consistently making the case for more townhouses, terraces, duplexes, secondary dwellings and low-rise apartments in well-located suburbs close to shops, services and transport,” Ms Berry said.

“Zoning reform on its own is not enough. To get homes built, government has to tackle the process barriers, approval delays, and administrative duplication that hold projects back.”

Ms Berry said the reforms would unlock better use of serviced land in existing suburbs, where missing middle housing can expand choice for rightsizers, first home buyers, smaller households, and families who want to stay in their communities.

“Canberra needs more housing diversity, not just more housing volume,” Ms Berry said. “Missing middle housing gives people more options at different life stages and makes better use of the infrastructure and amenity we already have.”