Minister for Planning and Public Spaces Paul Scully said Kiama needs in-fill development in the form of multi-storey buildings to solve the housing crisis which has engulfed the area.

After revelations last week that there could be a residential building as high as 14 storeys in Kiama’s town centre, Scully said the NSW Government was responding to the wishes of local residents who did not want to see new housing estates swallowing up the green hills that make the surrounding region so picturesque.

“Kiama residents have previously expressed a desire not to see extensive greenfield development – that means that additional density needs to be seriously considered if Kiama’s housing pressures are to be relieved,” Scully told The Bugle.

“There is no part of NSW that is not in need of more housing.

“Every part of the state has to do their part in addressing our housing supply challenges, including Kiama.

“Infrastructure considerations are part of the state-led rezoning that brings all agencies to the table.

“The Minns Labor Government has also reformed state infrastructure contributions so that funds are available to assist in delivery infrastructure.”

The Level 33 proposal for Akuna Street is causing plenty of angst in the local community - the developers and Kiama Municipal Council are currently engaged in a legal battle which will resume in the Land and Environment Court in mid-December.

Level 33 plans to turn the old Kiama Independent site into a multi-storey commercial and residential building and has submitted an Expression of Interest to the Housing Delivery Authority for a 32.5 metre development at the eastern end of Akuna Street.

Its proposal is still in the early stages of planning but if it is approved by the HDA, it could be declared a State Significant Project by the Minister, which would pave the way for the developers to make it a 14-storey behemoth which would dwarf the town centre, against the wishes of Kiama Council, which wants a limit of seven storeys.

The HDA is an optional pathway with strict criteria and all projects go through a full merit assessment process, including community consultation.

Kiama Mayor Cameron McDonald, in his column for The Bugle, said the new planning pathway “enables concurrent rezoning to circumvent local planning controls, removes Council from decision-making and limits our community’s voice to a submission - that’s not good planning”.

Katelin McInerney in NSW Parliament.

He added that Council had written to the NSW Government to express their concerns about the process and that “Kiama’s future should not be dictated by Sydney-based planners and bureaucrats”.

Kiama MP Katelin McInerney, who last week said she “shares the community’s concerns” about the Level 33 proposal, used her maiden speech in NSW Parliament on Wednesday to highlight the issue.

"It is imperative that we build communities, not just put up more houses," she said.

"Infrastructure must come online alongside growth, ensuring we have the resources, facilities and services in place to support our residents at every stage of life.

"We must plan sensibly, in a way that respects and protects our beautiful natural environment, so we hold onto our wonderful sense of community and the character that makes this place so special.

"I'll work relentlessly and with all levels of government to achieve this.

Paul Scully and Katelin McInerney.

"I will be a strong advocate for the investment, forward planning and sustainable solutions our region needs to thrive now and into the future."

The NSW Government’s landmark Planning System Reforms Bill 2025 passed both houses of Parliament on Tuesday.

NSW Premier Chris Minns said the Bill was the most significant overhaul of the Environmental Planning and Assessment Act 1979 in a generation, modernising the foundational legislation of the state’s housing, jobs, infrastructure, and energy delivery.

Minns said the planning system had grown overly complex and slow, holding back the delivery of new homes, job-creating investments and adding unnecessary costs and delays to the construction pipeline.

These reforms will help clear the bottlenecks and make the system work for communities, councils and builders, according to the Premier.

“For too long, NSW has been held back by a system that was slow, complex and out of step with the necessity to deliver more homes for those who need them,” Minns said.

“These reforms will help us build more homes faster, in the right places, giving young people and families the chance to access a home.”

Scully said the “overwhelming support of the Parliament for the Bill demonstrates a shared commitment to tackling NSW’s housing challenges and enabling a modern economy”.

“This Bill will enable a planning system fit for the 21st century, one that supports housing and energy delivery, encourages job creation, investment and builds better communities.”

Recently appointed Shadow Minister for the Illawarra and South Coast Chris Rath said he was concerned that the NSW Government had not sufficiently invested in infrastructure to cope with Kiama’s soon-to-be rapidly increasing population.

“Kiama is one of the most beautiful and liveable parts of all of Australia and more people should be given the opportunity to call it home,” he told The Bugle.

“Young Australians will increasingly be squeezed out of the housing market unless we build more supply.

“The Minns Labor Government needs to explain how they will be funding and delivering more infrastructure and services in Kiama to keep up pace with this population growth.

“They’re not off to a good start when about a quarter of all trains travelling to Wollongong and Sydney are running late.”

Kiama Council is working in partnership with the Planning Minister for the redevelopment of its two-hectare depot site further south on Shoalhaven St, opposite the Bowling Club.

Council is aiming to build new buildings between six and eight storeys with 450 residential homes and the proposal is on public exhibition until Wednesday, 3 December.

Three local drop-in sessions were held this week at the Joyce Wheatley Centre and Kiama Farmers Market for residents to provide feedback on the Shoalhaven Street Precinct plans.