The Australian Capital Territory government is turning to artificial intelligence to revolutionise its planning approval system, aiming to accelerate development assessments and boost housing construction across the nation's capital.
AI to Transform Development Assessment Process
Planning officials in the ACT are actively exploring how artificial intelligence can enhance the accuracy of development assessment processes while increasing the number of approvals that can be efficiently signed off. The move represents a significant technological shift in how the territory manages its growing development pipeline.
Chief Minister Andrew Barr confirmed the government's interest in AI technology during his address at a Property Council summit on Thursday, November 21, 2025. He noted that artificial intelligence is already supporting planning and assessment agencies across Australia, presenting what he described as a genuine opportunity for the territory.
"There is a real opportunity for the ACT to accelerate our capacity through the appropriate use of the technology," Mr Barr told attendees at the property industry gathering.
Driving Housing Productivity and Construction
The push toward AI integration forms part of the government's broader strategy to boost productivity within the housing and construction sector. This initiative directly supports what the Chief Minister characterised as "ambitious, but achievable" targets for new homes in the territory.
Mr Barr emphasised the government's commitment to streamlining operations, stating that further reducing unnecessary duplication in the public service, streamlining decision-making and modernising construction requirements would continue to be progressively consulted and rolled out.
"The next few years will test our capacity to plan well, to build well, and to act with urgency," the Chief Minister cautioned. "But growth must be sustainable. Reforms must be practical, and progress must be steady, not stalled by endless cycles of review."
Mr Barr stressed that the challenge of delivering more housing remained a shared responsibility between the government and industry, requiring coordinated effort from all stakeholders.
Lease Variation Charge Reforms and CBD Transformation
Beyond technological innovation, the Chief Minister outlined significant forthcoming changes to the territory's lease variation charge system, including incentives designed to encourage adaptive reuse and redevelopment of older buildings in Canberra's central business district.
The government is particularly focused on revitalising the city centre, where Commonwealth departments are vacating what Mr Barr described as "monolithic buildings" with limited suitability for adaptive reuse. The government sees this as an opportunity to transform the area's character and function.
"We want innovative solutions there, and we recognise LVC will be one of the levers that we can seek to utilise to get some interesting, different outcomes in those particular sites," Mr Barr explained, echoing comments he made to The Canberra Times in October.
The Chief Minister previously suggested that the central business district could evolve into a central entertainment and residential district, signalling a fundamental shift in how the heart of Canberra might develop in coming years.
Incentives for Affordable Housing and Community Infrastructure
The government's reform agenda extends to offering lease variation charge remissions to encourage affordable and social housing provision. Additional discounts will be available for developers who contribute to public infrastructure upgrades, creating a system that rewards community-minded development.
"This will mean that proposals with genuine contributed assets that take pressure off the government's capital program could be eligible for a remission on their LVC," Mr Barr detailed.
This approach will be particularly relevant to projects in existing town centres and local shopping precincts, where the delivery of new or renewed community infrastructure will not only support individual projects but help generate activity in broader precincts.
The government is also considering time-limited changes to the lease variation charge system to specifically encourage "missing middle" housing – which includes duplexes, townhouses, terraces and rowhouses. These housing types are among the government's priorities in the coming months as it seeks to diversify Canberra's housing stock.
Industry Welcomes Planning System Reforms
Property Council ACT and capital region executive director Ashlee Berry welcomed Mr Barr's commitments to lease variation charge changes, describing the movement as long overdue.
"A fairer and more transparent system will unlock stalled projects and get more homes out of the ground in the ACT," Ms Berry stated.
The Property Council has been advocating for LVC reform, arguing that the current system has been choking viable development projects. Ms Berry expressed optimism that the announced changes could deliver the transparency, balance, and incentives needed to stimulate construction activity.
"If the changes announced today deliver the transparency, balance, and incentives we've been calling for, we'll see more homes delivered and fewer projects dying in the pipeline," she concluded.
The combined approach of technological innovation through AI and systematic reform of development charges represents a comprehensive strategy to address Canberra's housing challenges while modernising the territory's planning framework for future growth.
