The ACT government unveiled its long-awaited exposure draft bill on the new planning act on Wednesday. The proposed act will drop controversial "call in" powers, but the government will still be able to bypass regular development application procedures for major projects such as the light rail and new schools.

Canberra businesses and planners have largely welcomed the new act, with business groups saying the changes would be felt beyond the property and construction sectors.

In the bill, the territory's planning officials to place a greater emphasis on project outcomes. There will also be specific plans for each of Canberra's districts.

ACT chief planner Ben Ponton said the new act was the result of years of review and consultation with the community and industry on ways to improve the act. He said the new act would expand the powers of the planning authority.

"That will allow the territory planning authority to really consider the outcomes and policy positions of government in considering development applications and not be constrained as we currently are with very strict quantitative rules," he said.

One of the most significant changes in the new bill is the introduction of "territory priority projects".

New powers would allow the ACT's planning minister to determine priority projects, which would allow development application approvals to be expedited. This will replace the existing call in powers.

Certain criteria must be met in order for the planning minister to declare a "territory priority project". The proposed project must be critical infrastructure, provide a significant benefit to Canberrans, be time-critical and there must be significant public consultation.

The declaration must happen before an application is lodged. If the planning minister has deemed a project to be a priority then the minister must inform the public of the intention and open it for public consultation.

The existing call in powers allow the planning minster to expedite the approval of an already-lodged development application.

The main difference in the new power is that the planning minister would need to determine the priority project prior to a development application being lodged. The chief planner would also be the final authority on the approval, not the minister.

There would still be consultation on the project in the development application process.

Examples of projects that could be deemed a priority include the Canberra Hospital expansion, light rail and the construction of new schools.

It is not known how many developments the government will deem priority projects but Planning Minister Mick Gentleman said projects such as the Canberra Institute of Technology campus in Woden and the light rail could be considered as priority projects.

"We look at the priority projects that will be coming forward into the future and judge each one in particular for the benefits of Canberra," Mr Gentleman said.

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However, the territory's opposition questioned the new powers.

"The introduction of the "territory priority project" is very broad and still gives the Labor-Greens government significant power that could be applied to almost any development proposal," opposition planning spokesman Peter Cain said.

"The Labor-Greens government's track record for community consultation gives me little comfort about what becomes a proposed territory priority project."

Greens planning spokeswoman Jo Clay, who has previously been critical of the government's use of call in powers, said the bill was an improvement but she had reservations about the new territory priority projects power.

"Territory priority projects look like they have the potential to be much better than call in powers, they look like they have much greater transparency and much better consultation built in," Ms Clay said.

"I've still got some reservations about territory priority projects, I think it will be good to get some really targeted feedback."

A requirement for pre-development application consultations on certain projects will be also removed.

The pre-development application process will be replaced with consultation principles. The principles will be developed following the three-month consultation on the exposure draft bill.

Mr Ponton said this was because the directorate believed the community was best placed to advise on what should be included in the principles.

"We're putting the call out to community and industry and professional associations to advise us what they think those principles ought to contain," Mr Ponton said.

The Planning Institute of Australia issued a statement welcoming the draft bill, particularly a requirement for the ACT's chief planner to be suitably qualified to make planning decisions.

"Having a qualified Chief Planner who is central to government decision-making is a huge vote of confidence for our profession", president Trevor Fitzpatrick said.

The draft of the planning bill says that the candidate must have relevant "managing and planning experience" and either have appropriate qualifications of eligibility to be registered with a representative body.

Canberra Business Chamber chief executive Graham Catt said the proposed legislation, particularly changes to accelerate the development application process would benefit businesses as well.

"One of the things that we do hear frequently is that planning and planning permissions and the planning processes here in the ACT, compared to those in other places are something that can be difficult and can mean that they are a disincentive for people to invest," Mr Catt said.

Phillip Business Community President Tom Adam welcomed the draft bill, saying it embodied a recognition that the existing planning legislation "is a little bit too onerous".

A shift towards district level planning could be an opportunity to engage with local businesses, he added, but noted the bill had only just opened for public consultation and he would wait to see how it will be implemented.

"I'm hoping that means that more ... commercial development will happen because commerce is the beating heart of Canberra," Mr Adam said.

The exposure draft bill will be opened for public comment for three months from March 16 to June 15, 2022.

The new planning bill is expected to be introduced into the Legislative Assembly later in the year.

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