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Tract Victorian Planning Team
Date
January 2025
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- Activity Centres
- Suburban Rail Loop (SRL)
- Plan for Victoria
- ResCode
- The Victorian Planning Authority (VPA)
- Small Lot Housing Code (SLHC)
- Economic Growth Statement (EGS)
- Renewables
- Energy Generation, Circular Economy
- Planning and Environment Act 1987
- Great Design Fast Track
- Affordable Housing Requirements for Development Facilitation Program
- Other
2024 was big year for planning and the development industry with governments of all levels focusing on the delivery of new housing for our growing population.
The Victorian Government has been focusing on a range of system reforms, many of which were announced as part of Victoria’s Housing Statement (September 2023). This momentum is expected to continue through 2025 and beyond, providing much needed improvements to planning systems that have not seen large scale reform for a number of years, with a range of outdated tools and processes now in the spotlight for a refresh.
The reforms coincide with the scheduled opening of a number of major transport infrastructure projects across Victoria in 2026 as part of Victoria’s Big Build, aimed at improving connectivity for residents of both Melbourne and the broader state. This includes the Melbourne Metro Tunnel, which will improve train frequencies around Metropolitan Melbourne and will connect the new Arden, Parkville and Anzac stations to the metropolitan train network. The opening will also assist in generating economic activity and development within major urban renewal areas, such as Arden and Macaulay.
The opening of the West Gate Tunnel project will provide an alternative to the West Gate Bridge and reduce congestion within the western suburbs. Several level crossing removals remain underway, with some generating renewal in surrounding station precincts, whilst the new Footscray Hospital is also expected to open.
So, what’s changed?
To bring you up to speed, we have provided a recap of each of the big-ticket reform initiatives. Click to skip to a section below
What's in store for 2025?
As we look forward to the year ahead, we expect to see the following for 2025 (and beyond).
- Short term actions in early 2025 will likely include the identification of an additional 25 activity centres, as well as gazettal of new planning scheme controls for the 10 pilot activity centres.
- Consultation for the balance of 50 centres is also slated to commence.
- Some further work will occur in relation to development contributions. A working group has been established to review new models of contributions and report back in March 2025, with an aim to implement them in the first 10 activity centres from January 2027. The new model may be rolled out more broadly across the state.
- The SRL Precincts Draft Structure Plans are slated for public exhibition in early 2025.
- Final planning controls for the SRL Precincts are slated for late 2026.
- This is expected to be finalised in the first half of 2025.
- This is expected to be finalised in the first half of 2025.
- The Draft 2025 Victorian Transmission Plan is expected to be released for public comment in early 2025, and finalised by mid to late 2025.
- A new ‘Industry Policy’ will be released in early 2025 to align with the priority sectors identified in the EGS.
- The Renewables Gas Direction Paper is currently in the public consultation phase through Engage Victoria.
- We expect to hear further around the release of the ‘options paper’ for reducing the number of business regulators.
- No timing was provided on the implementation of EGS outcomes; however, it is expected that reforms will be gradually rolled out in the short to medium term. We anticipate that the State Government would be keen to have these underway prior to the Victorian State Election in November 2026.
- It is expected that this Bill will be considered by the Victorian Parliament in 2025.
- Longer term changes to the Planning and Environment Act 1987 are also anticipated, however, the process of reviewing and re-writing the Act is likely to take a number of years.
- Whilst no timing has been provided, we expect further information on the operation of this process may be released in 2025.
- We also expect the release of the State Design Book of ‘Future Homes’ in early 2025.
- The timing for the review of the Better Apartment Design Standards (BADS), which was flagged within the Victorian Housing Statement, is unknown at this point.
Activity Centres
During 2024, the planning work for the pilot 10 activity centres (Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie & North Essendon, Ringwood and Preston) included in the Activity Centres Program was substantially progressed.
Some of the key aims / changes as part of the program include:
- Encourage densification within existing and well-serviced suburbs of Metropolitan Melbourne.
- Introduce new planning scheme controls to all activity centres across Metropolitan Melbourne in a more streamlined manner, with the aim of reducing the typical timeframe to update controls from four years to one year.
- Delivering controls that are ‘fit for purpose’ and provide increased certainty around development outcomes.
- Encouraging growth in both the commercial cores of the centres, as well as the ‘walkable catchments’, stretching 800m from the commercial core.
- Within the commercial core, the new controls seek to provide clear ‘built form’ requirements relating to heights, setbacks, floor area ratios, overshadowing, activation of the street, landscaping and the like.
- Within the walkable catchments, the controls seek to:
- Allow building heights up to six storeys on larger sites.
- Delete the Garden Area requirements.
- Provide other amended controls that seek to deliver high quality ‘gentle density’.
- Incentivising development that delivers public benefits (such as affordable housing and open space).
Consultation on the first 10 activity centres commenced in March 2024, with further consultation commencing in September 2024.
A further 25 activity centres were identified in October 2024, and included a range of centres along existing train and tram routes, particularly focused on well-serviced areas in the middle / inner eastern, southeastern and western suburbs.
It is understood that short term actions (likely within the next 6 months) will include the identification of 25 more centres, as well as the finalisation and gazettal of the new planning scheme controls for the pilot 10 activity centres. Consultation to inform the Structure Plans of the new centres will also commence.
It is also expected that some further work will occur in relation to development contributions. A working group has been established to review new models of contributions and will report back in March 2025, with an aim to implement them in the first 10 activity centres from January 2027. The new model may be rolled out more broadly across the state.
Source: Victorian Planning Authority – Activity Centres
Suburban Rail Loop (SRL)
The State Government has continued to design the Suburban Rail Loop and undertake preliminary construction works, including undertaking significant construction work at station precincts, as well as relocating and constructing services and utilities.
Structure Planning for the Station Precincts has progressed, with high level draft visions and discussion papers tabled for consultation in March 2024. Details around possible height limits have also been released. The Suburban Rail Loop Authority (SRLA) is the Responsible Authority for implementing the proposed changes to the planning schemes in these precincts.
The SRL Precincts Draft Structure Plans are slated for public exhibition early in 2025, with final planning controls for the SRL Precincts anticipated in late 2026.
Source: Victoria’s Big Build – Suburban Rail Loop Map
Plan for Victoria
The drafting of the successor to the current Metropolitan Planning Strategy (Plan Melbourne 2017 – 2050) is progressing.
Plan for Victoria (PfV) will provide a whole-of-state strategy, supporting infrastructure delivery and providing guidance to facilitate the Victorian Government’s target of delivering 80,000 new homes a year. Discussions to date have indicated that PfV will be a fluid and flexible plan – rather than ‘static’ – allowing it to be adapted to any future conditions.
In February 2024, preliminary housing targets for each municipality were released, providing further guidance as to where housing growth will occur. It is understood PfV will provide further detail on this.
We understand Plan for Victoria will recognise the important role that the regions play in meeting the Victorian Government’s ambitious housing targets.
Consultation on some high-level ideas associated with PfV also occurred throughout the year, with the State currently reviewing stakeholder feedback.
It is expected that the final Plan for Victoria will be released early in 2025.
ResCode
Following on from the interim ‘codification’ of some elements of ResCode in September 2023, a further reform of ResCode has been progressing, with consultation occurring with local government and industry through 2024.
The reformed ResCode will provide a ‘Deemed to Comply’ assessment system, currently used in some other jurisdictions (such as Queensland) and under Victoria’s Small Lot Housing Code which has been in place in some municipalities since 2011 in various forms.
It is understood that the ‘discretion’ of a Responsible Authority for a code-compliant development will be removed, providing certainty that compliant development can be approved. This will likely include deleting the current considerations around Neighbourhood Character and increasing allowable built form envelopes.
It is understood that the material from the latest round of consultation is currently being reviewed by the Department of Transport and Planning (DTP), with an aim to finalise the amended ResCode within the first half of the year.
The Victorian Planning Authority (VPA)
Concurrent with its 2024 Business Plan, the VPA released a 10 Year Plan assigning indicative delivery timeframes for all remaining PSPs (except for PSPs in regional Victoria).
The VPA also underwent a major restructure (see this link for more information), with its board dismantled and the VPA now reporting to the Minister for Planning (through the Secretary of DTP). This streamlined structure aims to foster a closer working structure for large scale strategic planning matters relevant for the State.
Small Lot Housing Code (SLHC)
Following industry consultation in 2022, the long-awaited update to the Small Lot Housing Code (SLHC) was approved and released in November 2024.
The most notable change is the introduction of a new ‘Type C’ standard for dwellings up to 4 storeys (13.5m) on small lots (<100m²) – importantly with an absence of locational criteria. The update also includes broader revisions to the existing Type A and B standards, including:
- A reduction in on-site car parking requirements to one space per dwelling, regardless of the number of bedrooms (applies to all SLHC lots).
- New minimum spatial requirements for on-site storage and bin areas (applies to all SLHC lots).
- An expanded range of built form elements to meet articulation requirements and/or encroach within setbacks (e.g. fins, sunshades), as well as the removal of restrictions on front balcony lengths and the introduction of “wrap-around” design elements.
- Changes to overlooking and overshadowing requirements.
- Updates to address operational issues with the Building Regulations 2018.
There are a number of significant differences from the 2022 draft, including the removal of the proposed ‘C2’ standard, ESD requirements, and restrictions on ‘row length’ for Type C lots from the approved version.
A revised Practice Note and new Guidance Note addressing broader strategic and urban design matters have also been issued, including direction regarding the preferred location and grouping of SLHC lots in response to Council feedback.
The 2024 SLHC is currently only approved for use within the seven metropolitan growth area Councils (Mitchell, Hume, Wyndham, Melton, Casey, Cardinia and Whittlesea), with transitional arrangements in place to allow estates currently under development to continue using the previous (2019) SLHC.
Older versions of the SLHC continue to apply within the Ballarat, Baw Baw, Greater Geelong, Latrobe and Knox Planning Schemes.
Tract understands that changes to the Code seek to facilitate greater housing density in growth areas, in line with the Plan Melbourne Policy 2.2.5 mirrored within the PSP 2.0 Guidelines for an average of more than 20 dwellings per hectare across a PSP. It remains to be seen what other levers the government will pull to encourage greater densities in PSP areas.
Source: Victorian Planning Authority – Small Lot Housing Code – Guidance Note (November 2024)
Economic Growth Statement (EGS)
Prior to resigning as Victoria’s treasurer in December 2024, Tim Pallas released the Economic Growth Statement (EGS), which aspires to stimulate and strengthen Victoria’s economy through four key levers:
- Opening doors – Providing more direct liaison and support for businesses seeking to invest in Victoria.
- Cutting red tape – Reducing regulatory and administrative burdens.
- Building new skills – Improving the supply of skilled labour in key sectors.
- Reaching every community – Focussing on regional Victoria.
It also identifies five priority sectors:
- Advanced manufacturing and defence.
- Health technologies and medical research.
- Circular economy, with a focus on renewables, battery storage and production, as well as sustainable mineral development and resource extraction.
- Digital technologies.
- Agribusiness.
A new ‘Industry Policy’ will be released in early 2025 to align with the priority sectors identified in the EGS. In addition:
- The Renewables Gas Direction Paper is currently in the public consultation phase through Engage Victoria, closing on 7 February 2025.
- We expect to hear further around the release of the ‘options paper’ for reducing the number of business regulators.
- No timing was provided on the implementation of EGS outcomes, however, it is expected that reforms will be gradually rolled out in the short to medium term. We anticipate that the State Government would be keen to have these underway prior to the Victorian State Election in November 2026.
Some of the key initiatives announced include:
- Establishing a new ‘Investment Coordinator General’ as an ‘escalation point’ for proponents and to ensure authorities meet assessment timeframes.
- Reducing the number of ‘business regulators’ by 50% by 2030 commencing with regulators in the construction and food industries.
- Reducing timeframes for the Environmental Effects Statement consideration to less than 18 months.
- Expanding the remit of the Development Facilitation Program (DFP) to assist in strategic rezonings for industrial purposes or for former industrial land.
- Further recognition that waste-to-energy technology has a role to play in managing Victoria’s waste by increasing the volume of waste that may be processed from one million to two million tonnes per annum.
- Incorporating Renewable Energy Zones (REZs) in the State Planning Policy Framework, to assist with expediting approvals.
- Fast-tracking new gas projects through the Development Facilitation Program.
- Investment in trunk infrastructure in regional Victoria to unlock industrial land supply.
Renewables
Earlier in 2024, Clause 53.22 – Significant Economic Development was also expanded to include renewable energy projects with an installed capacity of 1 megawatt or greater. The key benefit being exemption of these projects from notice and third-party review rights.
Also, throughout 2024, the Victorian Government (through VicGrid) undertook stakeholder and community consultation to inform the preparation of the 2025 Victorian Transmission Plan, which will focus on the state’s energy needs over the next 15 years.
As part of this process, Engage Victoria released the Renewable Energy Zone Study Area Map, which categorised land throughout Victoria into three tiers of priority based on its relevant opportunities (such as wind or solar resources and proximity to existing transmission infrastructure) and constraints (such as landscape values, biodiversity or cultural heritage – amongst others).
The Draft 2025 Victorian Transmission Plan is expected to be released for public comment in early 2025, and finalised by mid to late 2025.
Source: Engage Victoria – Developing the 2025 Victorian Transmission Plan – Renewable Energy Zone Study Area
Energy Generation, Circular Economy
The Victorian Recycling Infrastructure Plan was released in 2024. This important update to Victoria’s previous waste and resource recovery strategy reviews existing infrastructure and identifies gaps across the state’s waste management network. It provides directions to guide when and where infrastructure is needed.
Updated landfill and buffer separation guidelines that were released by the EPA in 2023 were adopted in 2024. Early this year all planning schemes were updated to reference the new guidelines.
Planning and Environment Act 1987
Victoria’s Housing Statement outlined an intention to undertake a major reform to the Planning and Environment Act 1987. Previous pieces of work have provided advice to the government on key areas that should be the focus, providing an indication of areas where reform could be expected. This extends to overhauling the planning permit application and planning scheme amendment processes.
In late 2024, a number of possible changes to the act were included within the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024. The Bill is still yet to be considered and passed through both houses of the Victorian Parliament (ie. Legislative Assembly and Legislative Council). We would expect as per other pieces of legislation being considered in Parliament that it may be subject to changes, should it be gazetted.
Longer term changes to the Planning and Environment Act 1987 are also anticipated, however, the process of reviewing and re-writing the Act is likely to take several years.
Furthermore, the Planning and Environment Regulations 2015 were amended in late 2024. This made a series of updates (mostly administrative) to various planning processes, such as the required content of planning permits.
Great Design Fast Track
It was announced in October that a new Great Design Fast Track pathway will be established as part of the DFP. This seeks to cater to ‘mid-rise’ townhouse and apartment projects of 3 to 6-storeys in height, that meet the tests of ‘build quality’, design excellence and sustainability.
This program is designed to provide a streamlined pathway for high quality development, which is currently not eligible if the estimated development cost is less than $50m.
This will allow high-quality medium density projects which are well designed and ‘look a bit different to the norm’, to be processed with an exemption from third party appeal rights.
It is also intended that some of the State Government land being released as a part of the Housing Statement is intended to be used for innovative demonstration developments under this program.
We also expect the release of the State Design Book of ‘Future Homes’ in early 2025, which will include reference to example buildings. It is understood that this falls into the broader Future Homes program.
Source: ABC News – ‘Well-designed’ apartments and townhouses to be fast-tracked under Victorian housing plan (Supplied: Hip V Hype)
Affordable Housing Requirements for Development Facilitation Program
Further information was provided around the required affordable housing requirements for residential developments being considered under Clause 53.23 (Significant Residential Development with Affordable Housing).
The options for affordable housing provision are outlined as follows:
- 10% of dwellings within a development sold at a 30% discount to a Registered Housing Association (RHA) or Homes Victoria (HV), for the use of social or affordable housing.
- 3% of dwellings within a development ‘gifted’ to either an RHA or HV.
- An alternative to the above, provided that the value is equivalent to the 3% gifting of housing.
- A 3% cash contribution, equivalent to the development cost of the housing development, to be paid to the Social Housing Growth Fund (SHGF).
- For Build to Rent (BTR) projects, 10% of dwellings to be rented to eligible households for a defined period. The total value of the contribution over the defined period must be equivalent to the gifting of 3% of all dwellings within a development. The reduced market rent provided must be no more than 30 % of the tenants’ income, and the proponent must report annually to the Minister for Planning.
The mix of dwellings provided are to be representative of the approved dwelling mix, with any option requiring a Section 173 Agreement with the Minister for Planning to guarantee the contribution.
Source: Victorian Premier’s Design Awards – Tarakan Street (NH Architecture)
Other
The Victorian Government announced in December that Clause 52.27 (Licensed Premises) will be removed from all planning schemes by 1 July 2025, with liquor licenses no longer requiring planning permission. These will be processed by the Victorian Liquor Commission (VLC) alone, removing the need to run two separate permit processes.
It is also understood that a review of minimum car parking rates is being considered by the Victoria Government (see link). This would align required car parking with the Public Transport Accessibility Level (PTAL) of a site. This ‘sliding scale’ of requirements would result in maximum requirements and lesser requirements for properties well-serviced by public transport, whilst properties which are remote from public transport would have higher minimum requirements. The PTAL will consider the quality of the public transport service (ie. frequency). It is unclear if or when such changes to car parking rates will be implemented.
Whilst not a planning provision, the Victorian Government announced in December 2024 an expansion of the Congestion Levy Area to expand to cover suburbs such as Richmond, South Yarra, parts of Windsor and Prahran. This also included an increase in the rates charged in the Category 1 and 2 levy areas.
How can Tract assist?
Tract looks forward to seeing the implementation of these initiatives in 2025 and beyond, and will provide further updates as more information becomes available.
Should you have any questions in relation to the items below, do not hesitate to get in touch with any of your contacts within our team.