The state government will allow more building work to be carried out without approval to expedite projects under the new $25,000 HomeBuilder grants program.
NSW Planning and Public Spaces Minister Rob Stokes said the list of home building work that can be carried out as "exempt development" would be expanded.
Mr Stokes welcomed the federal government's package of $25,000 grants for those looking to build or renovate a home.
"This is going to make a big difference to NSW - not only for home owners and renovators, but also to the many thousands of people that work in the construction industry right across the State," he said.
"This will mean jobs for our builders, our plumbers, our electricians and all of the people and businesses in the supply chain that depend on this critical industry.
"If you've been putting off a renovation or build, this extra $25,000 is a great reason to get started.
"Already, things like internal renovations, balconies, garden sheds, and rainwater tanks can generally be done without any planning approval, and we'll look to expand that list further so home owners can get on with the job of creating their dream home.
"We're also rolling out the easy-to-use ePlanning platform to every council in NSW, which means home builder and renovators can process their development applications online and faster than ever before."
The $688 million HomeBuilder program provides a one-off tax-free payment of $25,000 from the federal government to property owners to help build or substantially renovate homes.
The value of the work needs to be between $150,000 and $750,000 and the pre-renovation value of houses cannot exceed $1.5 million.
Pools, sheds, granny flats and other structures are excluded.
The grants will be means tested, applying to single people who earned up to $125,000 the previous financial year and couples who earned up to $200,000.
The scheme will run only till the end of this year.
A building contract must be signed between June 4, 2020 and December 31, 2020.