Can states reject federal advice on land development projects?

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States Can Opt Out of Federal Advice on Land Development Projects

States are not legally obligated to adhere to federal advice on land development projects if they choose not to accept the proposed amendments to the Town and Country Planning Act 1976. This is because Section 1(3) of the Act explicitly allows state governments to decide whether specific provisions of the law, including any new amendments, will apply within their territories. Therefore, each state retains the autonomy to consent to or reject the application of these federal requirements.
States Retain Decision-Making Power

The proposed amendment, which seeks to introduce Section 20B, mandates that state and federal government agencies must obtain advice from a federal council concerning certain land reclamation and infrastructure projects. However, this mandate is contingent upon the states’ agreement. Without such agreement, the provisions of the amended Act will not be operative within a state, effectively allowing them to disregard the federal council's recommendations.
Mechanisms for Federal Consultation

For states that do agree to the amendment, consultation with the federal council would involve submitting a development proposal, a social impact assessment report, and any other documentation required by the council. This process is intended to ensure that significant land development and infrastructure projects are reviewed at a federal level, particularly those involving land reclamation, airports, highways, and dams deemed to be of national interest.
Social Impact Assessments as Standard Practice

The requirement for social impact assessment reports, as outlined in the proposed Section 20B(2), is not entirely new in practice. Lawyer Derek Fernandez noted that such assessments are already a standard procedure for major infrastructure developments, citing examples like the Kinrara-Damansara Expressway (Kidex), and large property developments such as PJ Sentral and Icon City in Petaling Jaya. This suggests that the underlying principle of assessing social impacts is already recognised within the development sector.

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Can states reject federal advice on land development projects?

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