New single 'estimated development cost' methodology replaces existing cost measures.
This circular replaces PS 24-002 and outlines changes to the EP&A Regulation 2021. It replaces the methodology for 'estimated cost of development' and 'capital investment value' with a new single methodology for 'estimated development cost' (EDC), plus related changes to other regulatory provisions and environmental planning instruments.
Circular PS 25-004 is a point-in-time, non-statutory guidance note issued by the NSW planning department on 9 October 2025 to explain a change in how the cost of a development is worked out for planning purposes. Historically, planners and applicants used two separate concepts — the 'estimated cost of development' and the 'capital investment value' (CIV) — depending on the provision being applied. This circular records that the Environmental Planning and Assessment Regulation 2021 has been amended to collapse those two measures into a single new methodology called the 'estimated development cost' (EDC).
The dollar figure produced by these calculations matters a great deal in the planning system because it commonly drives things like which consent authority determines an application, the level of application fees, contribution and levy calculations, and whether certain thresholds are triggered. By moving everyone onto one consistent method, the change is intended to remove ambiguity about which figure to use and how to calculate it. The circular also flags 'related changes to other regulatory provisions and environmental planning instruments' that flow from adopting the new EDC concept.
Because a circular is guidance rather than law, the binding effect comes from the amended Regulation and instruments themselves; PS 25-004 explains and supports their consistent application. The circular expressly replaces the earlier PS 24-002, so practitioners should treat this as the current statement on the topic. The web listing supplied here gives only a short summary — the detailed methodology, commencement timing and transitional arrangements would be set out in the linked PDF, which is not reproduced in this source text.
Per the summary, it is directed to the whole NSW planning system — 'all NSW planning applications and consent authorities'. That covers councils and other consent authorities determining development applications, as well as applicants and practitioners who must prepare cost estimates. The legal obligation itself sits in the amended EP&A Regulation 2021 and the affected environmental planning instruments; the circular provides supporting guidance.
It is engaged whenever a development cost figure must be calculated for a planning purpose — that is, wherever the former 'estimated cost of development' or 'capital investment value' concepts were previously used. From the change described, those calculations must now be done using the single 'estimated development cost' (EDC) methodology. The source does not reproduce the commencement date or transitional rules; those would be in the linked PDF.
The circular is tied to amendments to the Environmental Planning and Assessment Regulation 2021, and to 'other regulatory provisions and environmental planning instruments (EPIs)' affected by the change. It also supersedes Planning Circular PS 24-002. The specific instruments amended are not itemised in the supplied text.
The Regulation has been amended to replace the separate 'estimated cost of development' and 'capital investment value' methodologies with one new methodology for 'estimated development cost' (EDC).
This circular expressly replaces Planning Circular PS 24-002, so earlier guidance on the topic should no longer be relied on.
The source notes 'related changes to other regulatory provisions and environmental planning instruments (EPIs)' flowing from the new EDC concept, though it does not list them individually.
This applies directly to Kiama Council as a consent authority and to anyone lodging a DA in the LGA. Every application that previously needed an 'estimated cost of development' or 'capital investment value' figure — which drives fees, contributions/levies and thresholds such as which authority determines the application — must now be prepared using the single EDC method. For a small coastal council processing typical residential, tourism and small-commercial DAs, the practical effect is procedural consistency in how cost is stated and checked, rather than a change to any coastal, hazard or heritage assessment. Council's DA forms, fee calculators and estimate templates should reflect the EDC methodology, and staff should ensure they are applying PS 25-004 rather than the superseded PS 24-002.
“This circular replaces Planning Circular PS 24-002.”
“It outlines changes to the Environmental Planning and Assessment Regulation 2021 (EP&A Regulation) to replace the methodology for 'estimated cost of development' and 'capital investment value' with a new, single methodology for ‘estimated development cost’ (EDC) and related changes to other regulatory provisions and environmental planning instruments (EPIs).”
“Current planning system circulars provide point-in-time non‑statutory guidance to support the consistent application of planning principles, processes and practices across NSW.”
Reproduced from the NSW Department of Planning, Housing and Infrastructure (planning.nsw.gov.au), © State of New South Wales, under Creative Commons Attribution 4.0. Text extraction may introduce minor formatting artefacts — rely on the official source for anything decision-critical.
This is an unofficial reproduction provided for convenience. It is not the official version of the legislation. For the official, in-force version, see legislation.nsw.gov.au.