The Victorian Government recently announced a series of changes across all planning schemes and legislation.
These changes largely flow from Victoria’s Housing Statement: The Decade Ahead 2024-2034, which identified that 800,000 new homes will be required in Victoria over the next decade (Housing Statement).
The Housing Statement identifies that these houses will be provided “closer to where people have the transport, roads, hospitals and schools they need.” Accordingly, the strategy also includes the expansion of transport hubs in residential areas.
The recent announcements include the following:
- Amendment VC257 to all planning schemes gazetted on 25 February 2025 which seeks to improve housing growth in and around activity centres and well-serviced locations through the introduction of Clause 32.10 Housing Choice and Transport Zone (HCTZ) and Clause 43.06 Built Form Overlay (BFO);
- Minister for Planning announcement on 27 February 2025 of 25 new Train and Tram Zone Activity Centres, with community consultation on the new zones likely to commence by April;
- The release of Plan for Victoria on 28 February 2025, which confirmed the Government will intervene to unlock space for housing through rezoning to ensure council housing targets are met;
- Government announcement on 2 March 2025 confirming surplus Government land and old office buildings will be the target of rezoning to encourage more housing development;
- Announcement of new draft structure plans for the Suburban Rail Loop (SRL) precincts on 3 March 2025;
- Amendment VC267 gazetted on 6 March 2025 (to be effective 31 March 2025), which introduces new Townhouse and Low-Rise Code which will amend Clause 55 to include new ‘deemed to comply’ standards to expedite the planning application process, and add Clause 57 to govern four-storey apartment standards; and
- The Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 (CPLAA) received Royal Assent on 18 March 2025, which includes some significant changes to the Planning and Environment Act 1987, with the amendment provisions to come into operation by 25 November 2025.
Amendment VC257
The amendment will introduce a new housing zone and built form overlay.
Clause 32.10 – Housing Choice and Transport Zone
The purpose of the HCTZ is to provide housing in increased density in designated activity centres and other well-serviced locations.
The HCTZ is likely to replace existing Neighbourhood or General Residential Zones which currently abut Activity Centres to create a transitional zone between the commercialised uses currently associated with Activity Centres and the more sensitive interfaces and requirements of residential zones.
The zone essentially functions per existing residential zones but with:
- Revised building height expectations.
The HCTZ applies maximum building heights for residential buildings under the zone. These vary between 11 metres and 21.5 metres, depending on the Schedule applied to the land, and whether the land is considered a ‘large site’. However, there are exceptions to the maximum height limit which may apply.
These are primarily concerned with the height of existing buildings, both on site and in the surrounds. - Slight changes to non-residential use provisions. For example, a bottle shop is allowed with a permit under the GRZ as long as it is associated with a residential development, but is completely prohibited in the HCTZ.
For non-residential developments, the Decision Guidelines specify that the responsible authority must consider whether the development is compatible with residential uses, and whether the use generally serves local community needs.
Clause 43.06 – Built Form Overlay
The purpose of the BFO is to encourage higher density development, with diverse housing types, close to existing infrastructure and public transport.
The BFO requires Schedules to the Clause to contain development frameworks which may outline the planned structure, character, public open space and movement and place frameworks, sensitive interfaces, and significant or heritage places.
The BFO is quite robust, particularly in regard to the mandatory standards for developments under the overlay. Nevertheless, it also includes a number of provisions which may be beneficial to achieving positive development outcomes, such as the following:
- Planning permit applications for land subject to the BFO are exempt from all notice and review provisions in the Planning Scheme (with the important caveat that a Schedule may ‘switch on’ the notice and review provisions on a case-by-case basis);
- The outcomes and standards of the overlay prevail over any inconsistencies contained in any other clause of the Planning Scheme; and
- Mandatory outcomes and standards under the overlay may be exceeded if the responsible authority is satisfied that the development provides a public benefit such as:
- Affordable housing;
- Public realm works;
- Public open space;
- Strategic land uses; or
- Works, facilities or services that benefit the local community.
Future Implementation
The Amendment has been implemented into all the Planning Schemes as of the gazettal. However, the zone and overlay do not apply to any land at this time.
Accordingly, it will be important to be aware of any notifications regarding the potential rezoning for your land, as the Amendment is implemented over the following months.
As the Government continues to announce changes to the Planning Schemes to implement the Housing Statement, there may be increased opportunities for landowners to become involved with other community consultation processes.
Existing Applications
The HCTZ includes transitional provisions to prevent any disadvantages for landowners with rezoned land. These provisions state that any applications made prior to the relevant date will be decided against the requirements for the zone which applied to the land at the time of the application. It also allows amendments to planning permits for residential buildings greater than the maximum building height under the HCTZ to be assessed against the requirements of the zone the land was included in prior to being rezoned.
The BFO specifies that Schedules to the Clause may specify transitional provisions, if necessary, but do not currently include any.
Amendment VC267
The Amendment introduces an amended Clause 55 to govern affected residential developments up to three-storeys, and includes an additional clause 57 to affect four-storey developments.
Consistent with the intentions in the Housing Statement of supporting the development of new housing, the amendment provides revised standards of development, but with the notable intention of creating a more uniform, certain and expedited approval process.
Changes are extensive, and in particular include reduced street setbacks and increased site coverage to maximise development potential, as well as a deletion of the ‘neighbourhood character’ standard with a view to achieving consistency across approvals and to remove what is often an unpredictable and subjective nuance on design response.
The ‘deemed to comply’ provision means that where a standard is set and achieved, then Council (or VCAT as the case may be) must regard the corresponding objective as being satisfied. Standards may still be deviated from where appropriate, but this then reverts back to reliance on the deciding authority approving the matter in consideration of the applicable guidelines – as well as inviting third-party notice and review.
The ‘deemed to comply’ standards also are reflected in an exemption from third party rights of review for developments that meet the conditions of the new clause 55 – meaning that where a proposal meets all applicable standards then the application is not advertised and cannot be subject to objector appeal – supporting the intentions of certainty, as well as expedited processes.
The incentives to comply with standards are therefore very significant.
Clause 57 as it relates to four-storey developments does not benefit from either the ‘deemed to comply’ provisions or exclusion from third-party notice and review.
The provisions will have effect from 31 March 2025, but with transitional provisions for applications on foot.
SRL Structure Plans
As part of the Suburban Rail Loop project, including supporting Victoria’s Housing Statement to increase housing densities surrounding transport hubs, the project aims to develop and expand on activity centres surrounding each proposed station.
There have been multiple consultation phases previously with the opportunity for community and stakeholder feedback in the project.
In early march the Suburban Rail Loop Authority (SRLA) released the draft structure plans and technical documents for each of the 6 affected precincts, being Cheltenham, Clayton, Monash, Glen Waverley, Burwood and Box Hill.
Copies of the documents are available here.
The documents are open for community and stakeholder feedback from 17 March to 22 April 2025 – which includes owners and occupiers of affected land within these areas.
The structure plans are expected to be finalised in 2026 with corresponding planning scheme amendments, following a public hearing to have the structure plan documents approved by an advisory committee later this year.
Planning Legislation Amendment
The CPLAA, as it relates to the planning jurisdiction, includes changes to the planning scheme amendment process, planning panel process, and the permit application and VCAT process.
The key changes include:
- Increased powers of VCAT to case manage proceedings for timely and efficient determination, including empowering VCAT to create ‘rules’ for managing proceedings, and issue summary reasons for decision where a responsible authority decision is affirmed or varied;
- Increase the ‘standard’ permit timeframes for commencement and completion of use/development to 3 years and 5 years (respectively), increased from 2 years and 4 years;
- Facilitating the publication of guidelines by the Minister as to the meaning of ‘material detriment’ – which is the threshold for whether some third parties are afforded notice of an application; and
- Introduction of a ‘low-impact amendment’ category of planning scheme amendment, being a pathway for less complex amendments that benefit from a truncated procedure.
Broadly, the changes are in line with creating greater facilitative opportunities for development and reducing red tape commonly associated with development.
How we can help
These changes comprise a fairly significant shift in the landscape (literally and figuratively!) of development in Victoria. Even experienced and practiced developers should carefully consider how these changes affect current and future projects, and also how they may enable new commercial opportunities.
Please contact a member of our planning team to discuss how we can assist you.
This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.
