Challenges to development requiring social impact assessment

Our previous article published 9 May 2025 highlighted the significant changes for renewable energy projects in Queensland proposed by the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Bill 2025 (Bill).

Since that alert was published, there have been public hearings on the Bill, the making of over 700 submissions and publication of the report of the State Development, Infrastructure and Works Committee on 20 June 2025 recommending that the Bill be passed. The Bill passed with amendments on 25 June 2025.

An aspect of the Bill as passed that is worthy of deeper consideration is the proposed changes to appeal rights and rights to commence a declaratory proceeding.

Changes to appeal rights

The Bill introduces new Sections 106ZI and 106ZJ to the Planning Act 2016 (Act) as follows:

“106ZJ Deciding particular applications relating to development requiring social impact assessment

1. This section applies in relation to the following applications (each a relevant application) - 

• a development application for development requiring social impact assessment;
• a change application relating to development requiring social impact assessment;
• change representations about a development approval for development requiring social impact assessment;
• an extension application for a development approval for development requiring social impact assessment.”

2. The following matters are not grounds for refusing the relevant application or a part of the relevant application, or directing the assessment manager or responsible entity to refuse the relevant application or part of the relevant application -

• there is no community benefit agreement for the relevant application or for an application for the development approval the subject of the relevant application;
• the community benefit agreement for the relevant application, or for an application for the development approval the subject of the relevant application, does not adequately manage, mitigate or counterbalance the social impacts of the development requiring social impact assessment.

3. This section does not apply in relation to a relevant application that is called in by the Minister under part 6, division 3."

"106ZJ Limitations on appeal rights

Despite section 229 and schedule 1, a person other than the applicant may not appeal against - 

• a condition of a development approval imposed under section 65AA(2) or (3); or
• a condition of a development approval imposed under a direction of the chief executive under section 106ZF(2); or
• a failure to impose a condition on a development approval under section 65AA(2) or (3).”

Section 229 and Schedule 1 of the Act set out appeal rights and parties to appeals to the Planning and Environment Court or a development tribunal.

New section 106ZI identifies matters that are not “grounds for refusing” an identified “relevant application”. Notably, Section 230(1) of the Act contains a requirement that a notice of appeal “succinctly states the grounds of the appeal”. A properly made submission must also, by definition, “state its grounds, and the facts and circumstances relied on to support the grounds”.

New section 106ZJ limits persons other than the applicant commencing an appeal in respect of certain matters associated with conditions imposed (or not imposed) under sections 65AA(2) or (3) or section 106ZF(2).

Sections 65AA(2) and (3) apply to development requiring social impact assessment (which under the Bill will include all development applications for wind farm and large-scale solar farms).

Section 65AA(2) enables a development condition to be imposed on a development approval that requires:

• compliance with a community benefit agreement but only to the extent the responsibilities under the agreement attach to and bind the owner of premises; or
• relates to managing, mitigating or counterbalancing of a social impact of the development; or
• relates to monitoring of a social impact of the development.

Section 65AA(3) confirms that such a condition may, require the provision of, or a contribution towards, infrastructure or another thing for a community in the locality of the development.

New Section 106ZF(2) enables the chief executive to direct the imposition of a stated community benefit condition of any development approval for an application.

Changes to declaratory proceedings

Similar amendments are also made to the Planning and Environment Court Act 2016 to limit the circumstances in which a declaratory proceeding can be brought about particular matters under the Act. Specifically:

• only the applicant, holder of a development approval, assessment manager or responsible entity for a development application can commence declaratory proceedings about a matter stated in, to be stated in or that should have been stated in a social impact assessment report for the development application or change application;
• only a person who is a party to a community benefit agreement, can commence declaratory proceedings with respect to a matter stated in, to be stated in or that should have been stated it, a community benefit agreement;
• a person may start a proceeding for a declaration about a matter stated in, to be stated in or that should have been stated in a community benefit agreement if the proceeding relates to the enforcement of a condition of a development approval for development requiring social impact assessment that requires compliance with the community benefit agreement;
• no person may start a declaratory proceeding in respect of a notice given by the chief executive (pursuant to new section 106ZE) indicating that a social impact assessment or community benefit agreement is not required for the application;
• no person may start a declaratory proceeding in respect of a notice given by the chief executive (pursuant to new section 106ZF) directing the assessment manager (or responsible entity) to impose a stated community benefit condition on any development approval given for the application.

Possible inconsistency with fundamental legislative principles arising from the limitation on appeal rights and amendments to the Planning and Environment Court Act is acknowledged in the Explanatory Notes to the Bill.

Third party challenges

An impact assessment under Section 45(5) of the Act is one that, among other things, may be carried against, or having regard to, any other relevant matter, other than a person’s personal circumstances, financial or otherwise. Examples of another relevant matter include a planning need and the current relevance of the assessment benchmarks in the light of changed circumstances.

Can a party raise, as a relevant matter, that, notwithstanding conditions imposed on any approval, the proposal will have negative social impacts and ought to be refused for that reason? In other words, can a party bypass the new limitations brought about by the Bill by casting grounds of appeal as relevant matters?

Section 106ZI likely causes a difficulty in that regard. This section specifically provides for matters that are not “grounds for refusing” a relevant application (or a part of the relevant application). It may be argued that the identification of a relevant matter with respect to inadequate management of social impacts of a development to support a notice of appeal or submission which contends for refusal of a proposed development will ultimately not assist having regard to Section 106ZI(2). While such matters might be raised, the provision identifies that they will not be grounds for refusing the relevant application (or part thereof).

Consideration of other aspects of the Bill as passed will be the subject of further alerts. If you are interested in receiving that content directly, please subscribe to our mailing list here.