The Winten Property Group proposal for more than 2000 residential lots, which would have been the Hunter's largest residential subdivision, was unanimously rejected by the panel.

In its determination, the panel said it recognised the importance of the site to "deliver much-needed housing for the growing regional community and the economic benefits arising from the development of a new suburb".

However it said it had to be satisfied with the merits of the application.

The panel determination said the applicant contended "that they have provided sufficient documentation for the Panel to be satisfied of the impacts, and impose a "Grampian" style condition to ensure that works are in place before release of lots at specified times".

However Transport for NSW determined it and the panel did not have sufficient information to assess the impacts of the development.

The panel said it could not be satisfied about what works are required, when they are needed, who is responsible and impacts arising from works.

"It is understood that no works can occur without upgrades to the regional network occurring," the determination said.

"The solution to regional traffic upgrades requires a government lead, strategic approach and cannot be addressed on a DA by DA basis - given the extent of works required."

The panel also said more detail about mine subsidence was required, with Subsidence Advisory NSW not satisfied with the documentation provided.

The development traverses Lake Macquarie and Newcastle local government areas. Concept approval was issued nine years ago and the DA assessment process has taken five years.

Lake Macquarie council had recommended the proposal be deferred for further information, while Newcastle council recommended refusal.

The panel said it considered the applicant's request to defer the determination, but "given the length of time the application has been under assessment and the timeframes involved in resolving the traffic and transport impacts, upgrades required and funding mechanisms, it sees no purpose in delaying the determination".

Winten director David Rothwell said he believed most of the issues were resolvable.

"While there is certainly a pressing need for government action on this issue, we provided the panel with a proposed condition of consent which would have allowed the government time to resolve this issue prior to the release of any residential lots, while we could get on with the next stage of detailed construction planning and preliminary work, allowing residential lots to come online as soon as regional traffic upgrades were resolved," he said.

"Unfortunately the panel chose to refuse the DAs instead, and this approach will mean that residential lots will not be able to be released until several years after resolution of regional traffic upgrades.

"We agree with the panel's comment that 'the lack of a strategic transport solution and funding mechanism for regional transport upgrades is preventing the delivery of housing to the market', and we urge the government to take urgent action to resolve this issue and unlock much needed residential land."

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