16 Dec 2024

Urbis welcomes the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024, which was introduced into Parliament on the 27 November 2024.

The Bill seeks to introduce several significant reforms identified in the State Government’s Housing Statement realised in September 2023. These reforms seek to address housing affordability, protect renters’ rights and make the planning system faster to introduce more housing and employment opportunities for Victorians – something Urbis has long been campaigning for.

Initiatives include changes to planning permit application process and the Metropolitan Planning Levy, the planning scheme amendment process, planning panels, VCAT proceedings and compensation claims.

The key planning reforms (changes sought to the Planning and Environment Act) are summarised below.

Planning Permit Applications

  • Allow the Responsible Authority to void an application after lodgement if it considers it incomplete and further information requested is not received in the prescribed time.
  • When deciding whether notice of an application is required, the Responsible Authority must consider new guidelines to be issued by the Minister about when a permit might cause material detriment.
  • Extend the default expiry date for permits.
  • Remove the mandatory requirement for permit applications called in by the Minister to go to a planning panel if objections/submissions are received.

Metropolitan Planning Levy (MPL)

  • Introduce an exemption for the payment of the MPL that can be applied for when an MPL payment has previously been made for a comparable application.
  • Allow prescribed classes of applications and certain circumstances to be exempt from the payment of the MPL.

Planning Scheme Amendments

  • Formalise the process for proponent-led amendments.
  • Introduce a more efficient pathway for less complex amendments (’low-impact’ pathway)
  • Allow the Minister to continue an amendment if abandoned by the planning authority

Planning Panels

  • Allow planning authorities to deem a submission frivolous, vexatious or wholly irrelevant and such submissions must not be referred to the panel.
  • A panel can decide to treat similar (same or substantially the same) submissions as one.
  • Panels may decide to consider a submission based on written materials if there is not a major issue of policy.
  • Panels may direct experts to hold an expert witness conference to consider issues and/or prepare a joint expert report.

VCAT

  • The Tribunal may treat multiple objectors as a single group if the statement of grounds relies on similar issues and may appoint one or more of those objectors as a representative of the group.
  • For efficiency, the Tribunal can decide to conduct hearings on written materials, impose time limits on submissions or limit/prohibit cross-examination of witnesses, confine issues of dispute and/or dismiss matters they consider lack merit.

Compensation claims

  • Introduce new requirements for supporting evidence to accompany a compensation claim. 
  • Require interest to be paid on compensation awarded by VCAT or the Supreme Court.

This is a critical and welcome step in reforming Victoria’s Planning System. The Bill seeks to address inefficiencies in the planning process, to reduce delays and, ultimately, facilitate the delivery of more housing and employment opportunities for Victorians.

We consider these changes likely to be significant for our clients. However, further detail is needed to support these reforms to understand their full implication.

We will continue to monitor the progress of the Bill and look forward to further clarity, particularly on matters such as: the drafting of what may constitute material detriment; the prescribed classes and circumstances that can be exempt from payment of the MPL; the definition of a low-impact pathway for planning scheme amendments; and information on proponent-led amendments.  

Please contact us if you’d like to understand how these changes could affect your projects.

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