A draft act could be released by the end of the year with the government aiming to introduce the new laws to the ACT's parliament next year.

ACT Planning Minister Mick Gentleman said an entirely new planning act would ensure better transparency in the planning system. He said the government would work with stakeholders in drafting the new act.

"We have heard extensively from the community and industry on how our planning system can be improved," Mr Gentleman.

"We will continue to work with key stakeholders to prepare the draft act.

"We need to get the legislation right so that industry, environmental groups and the community have trust and confidence in the new system."

A major review of the planning system has been underway since 2019, under the review the territory government has sought to "simplify" the planning system.

The ACT government had previously said it was deciding whether to reform the current act or introduce an entire new one.

"The current legislation has grown complex and cumbersome as changes have been added to it in a piecemeal way," Mr Gentleman said.

"A new act means starting with a blank slate to build the best possible system that promotes great planning, design and development across Canberra."

The government wants a new planning system to be less focused on rules and more focused on "outcomes", meaning higher-quality developments that are appropriate for their location.

Earlier this year, the ACT's chief planner criticised the current system saying it forced the planning authority to approve unsuitable developments. Ben Ponton said this gave developers a "clear pathway".

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As part of the planning reforms, the government wants to introduce district-based plans for each of Canberra's eight districts. The government is currently consulting about these plans.

"District planning is a new strategic element in the planning system that will provide more planning guidance at a district area level and allow for the distinctive character of each district to be reflected in the planning system," the government said.

"We are currently considering how district planning can be incorporated within the planning system, and we want to better understand what Canberrans value about districts and that is important to capture in that level of planning."

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