Victorian Government changes to planning

Summary of Reform

Amendment VC267 reforms came into operation on 31 March.

The amendment:

• Implements new development planning assessment provisions aimed at increasing housing construction by enabling higher residential density and reducing planning decision timeframes
  
  
• Replaces the former Clause 55 of the Planning Scheme (two or more dwellings) for buildings up to three stories and introduces a new Clause 57 for residential development of four stories

Details and features of reform

• A new code will replace and expand on the former Clause 55 of the Planning Scheme (two or more dwellings on a lot) for buildings up to three stories, providing new “deemed to comply” standards.

• Applicants will have the choice to design their application to meet all the ‘deem to comply’ standard. Applications can seek to vary the standards, the planning officer will assess the variations suitability.

• Applications that are deemed to comply will remove the ability for third party rights (submitters) to appeal a decision to VCAT.

• Applications that meet ‘deem to comply’ requirements will still need to advertised to surrounding properties, but must have a permit issued.

• Applications that don’t meet all the ‘deem to comply’ standards will have their suitability assessed by a planning officer, and will maintain third party appeal rights and be advertised through the standard process.

• The new Low-Rise Code has modified existing standards for all multi-unit development assessments in all residential zones.

• These changes are intended to improve dwelling liveability and resilience, key changes include:
  1. Minimum room sizes for bedrooms and living areas
  2. Minimum room depths
  3. Natural ventilation standards, ensuring breeze ways are created within new dwellings 
  4. Roof area requirements ensuring capacity for future installations of roof top solar energy
  5. New waste and recycling standards to match State Government requirements

• The Low-Rise Code has modified standards related to overlooking, overshadowing provisions, decreases to minimum front setback requirements and permeability. Key changes include:
  1. Increases the allowable overshadowing from 25% or 40 square metres to 50% or 25 square metres
  2. Overlooking standards no longer apply to bedroom windows
  3. Private open space requirements reduced from 40 square metres to 25 square metres
  4. Reduces site coverage requirements from 60% for all zones to a sliding scale of between 70% - 60% depending on the zone.
  5. Changes to side and rear setback requirements
  6. Reduces the front setback requirements from 9 metres to 6 metres. The new standard will assess the lesser of front setbacks, with no requirements to assess the average.
  7. Removes the Landscape requirements and replaces it with a new standard focused on Tree Canopy requirements.

• Removal of Neighbourhood Character consideration as part of the assessment of unit applications.

• A merits-based assessment that reduces the ability of local councils to vary residential development standards through schedules to residential zones.

Further Information

• New townhouse and low-rise code enabling better outcomes and faster permits

• Residential development

• Townhouse and Low-Rise Code

Summary of Reform

The State Government has commenced the process of reviewing the Planning and Environment Act 1987 to create a more efficient, fit for purpose planning system.

As part of the rewrite, the Government will look at:

• The time and costs associated with structure plans and rezoning

• Possible legislative change to replace the current one-size-fits-all planning scheme amendment process

• Structure and content of the Victoria Planning Provisions and Planning Schemes

• Changes to the planning permit process including different assessment and approval processes

Details and features of reform

Some of the possible reforms currently being considered include:

Planning Scheme Process

• Introducing standardised zones and overlays with limited ability to locally vary
• Three proposed streams for planning scheme amendments with consistent process requirements appropriate to the complexity of the matter.
• The role and conduct of panel members to be reviewed.
• Clarity around community engagement with engagement plans required to be submitted with all amendment authorisations.
• Formalisation of procedures, timeframes, cost recovery provisions and consideration process for proponent led amendments.
• Prescribed criteria and timeframes for ministerial decision making on Authorisations, including further information requests and final decisions to be considered.

Planning Permit Process

• Ability to reject objections if considered vexatious or irrelevant.
• Establish a consistent prescribing form to submit requests for Information.
• Establish set timeframes for referral authority responses otherwise deemed to be no objection.
• Three proposed streams for permit amendments with consistent process requirements, including statutory timeframes.

Councils will be further consulted on the proposed changes and asked to provide feedback. Officers have attended an initial information session to hear more about the proposed changes and ideas.

Summary of Reform

Amendment VC257 was gazetted on 25 February 2025 and applies to all planning schemes in Victoria.

The amendment:

Introduces two new planning tools to the Victorian Planning system to support housing growth in and around identified activity centres:

• Built Form Overlay (BFO)
• Housing Choice and Transport Zone (HCTZ)

Details and features of reform

• VC257 does not apply the new tools to geographic areas yet, this will be done through a separate Statewide amendment.  The new zone will be applied to catchment areas (inner and outer) surrounding activity centres.

• The tools are intended to enable higher density housing and increased housing diversity, consistent with the Victorian Government’s Housing Statement. The Statement, “The Decade Ahead 2024-2034”, identified ten priority activity centres: Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood. These are centres where the Victorian Government intends to lead planning changes as part of its Activity Centres Program. There is intention to identify further centres as planning progresses.

• Plans for the initial 10 centres listed above are now being finalised, and the new planning tools introduced by VC257 are expected to be applied soon. There are a further 50 centres identified for more intensive residential development, where planning is not yet as advanced, and where the VC257 planning tools may also be used in the future. These are referred to as ‘Train and Tram Zones’. None are within Yarra Ranges. Read more about Train and Tram Zone Activity Centres.

• The new Built Form Overlay (BFO) is intended to standardise planning controls in activity centre core areas (commercial areas) and priority precincts. The BFO determines building heights and design rules and introduces a new streamlined planning pathway to expedite development.

• The new Housing Choice and Transport Zone (HCTZ) applies to residential catchment areas surrounding the core activity centre areas (where the BFO will apply). The HCTZ intends to enable a diversity of housing in areas with convenient access to the activity centres, which are currently residentially zoned. The HCTZ applies mandatory height controls and is intended to operate with the newly announced ‘Townhouse and Low-Rise Code’ to reduce planning assessment timeframes and expedite development.

Further Information

• Victorian State Government - Activity Centre Program - About our plans

• VC257 Explanatory Report(PDF, 148KB)

Summary

A new Plan for Victoria was released 28 February 2025, and sets the state-wide vision for how Victoria will grow over time.

• Plan for Victoria replaces the former Plan Melbourne 2017-2050 and the former eight Regional Growth Plans.
• The Plan is heavily focused on achieving the Victorian Government’s Housing Targets and the Activity Centres Program.

Details and features of reform

Plan for Victoria was developed based on results of community engagement through 2024, which focused on ideas to include in the plan. No draft plan was released for consultation.

The Plan is structured around five key pillars:

• Housing for all Victorians
• Accessible jobs and services
• Great places, suburbs and towns
• Sustainable environments
• Self-determination and caring for Country

Further Information

• Plan for Victoria

The Minister for Planning has approved Amendment VC280 that amends all planning schemes in Victoria to introduce a new planning permit assessment pathway to facilitate townhouse and apartment development.   

The amendment changes all planning schemes by introducing clause 53.25 (Great Design Fast Track) and amending clause 72.01 (Responsible authority for this planning scheme) to specify that the Minister for Planning is the responsible authority for applications under the Great Design Fast Track.

Only proposals that meet the specified principles, listed below, for good design and are highly sustainable can access this pathway: 

• Neighbourly homes
• Welcoming homes
• Green homes
• Sustainable homes
• Healthy homes
• Adaptable homes
• Good value homes

Apartment and townhouse developments with eight or more homes, and from two to eight storeys in height may be considered to be eligible to access this new streamlined planning pathway.

Applications made under the Great Design Fast Track will require notification and community members can provide feedback during advertising, and these views will be considered prior to the Minister for Planning making a decision. Once decided objections will be exempt from review at VCAT. Councils will be notified of applications. Other requirements of planning schemes will continue to apply, however the Minister for Planning may choose to waive or vary any of the following:

• Minimum garden area requirement.
• Any building height or setback requirement.
• Any condition opposite a section 2 use in a zone of a schedule to a zone.
• Car and bicycle parking requirements under clauses 45.09, 52.06 and 52.34.
• An application requirement in any part of the planning scheme if the responsible authority deems it not relevant to its assessment of the application.

Proposals must demonstrate a higher standard of sustainability performance than typical developments, meeting an average of 8-stars on the Nationwide House Energy Rating Scheme (NatHERS) for apartments and 7.5 stars for townhouses.

Building heights above what is allowed in the planning scheme will only be considered when proposals demonstrate strong alignment with the Great Design Fast Track design principles and appropriately respond to the surrounding context.

The pathway will be available for use from April 2025. You can find out more at planning.vic.gov.au/greatdesignfasttrack and this link to Amendment VC280 in Planning Scheme Amendments Online will allow you to access the lodged documents and Explanatory Report.

Eligibility requirements 

The Great Design Fast Track applies to developments with eight or more dwellings, from two to eight storeys, that deliver high sustainability and meet seven key design principles:

• Neighbourly Homes – Enhancing local identity by embracing change and generating lasting social value.
•  Welcoming Homes – Creating welcoming and safe homes that promote a sense of family and community.
•  Landscaped Homes – Enhancing local biodiversity, natural systems and connections to nature.
•  Sustainable Homes – Enduring and high-performing, embedding climate resilience and minimising environmental impacts.
•  Healthy Homes – Enhancing health and wellbeing through integrating the natural and built environment.
•  Adaptable Homes – Housing that meets the diverse and changing needs of households and families.
•  Good Value Homes – Supporting more affordable housing through innovative housing development and delivery models that respond to changing housing markets.

 Detailed guidance is available in the State Design Book.

Sustainability Requirements

Proposals must exceed standard energy efficiency benchmarks:

• Apartments must achieve an average 8-star rating under the Nationwide House Energy Rating Scheme (NatHERS)
•  Townhouses must achieve at least 7.5 stars

What Can Be Waived or Varied?

While councils will be notified of applications, the Minister for Planning will make the final decision. The community will still have an opportunity to provide feedback during public notice. However, once a decision is made, objections cannot be reviewed by VCAT.

The Minister may also choose to waive or vary certain planning requirements, including:

• Minimum garden area
•  Building height and setback controls
•  Conditions related to section 2 uses in zone schedules
•  Car and bicycle parking (clauses 45.09, 52.06, 52.34)
•  Application requirements deemed unnecessary for assessment

In some cases, building heights above the local planning scheme may be supported—if the proposal strongly aligns with the Great Design Fast Track principles and responds appropriately to its surroundings.

Further information 

• Great Design Fast track information 
• Browse Planning Scheme Amendments Online