Victoria’s Housing Statement Released: Faster planning approvals in a housing crisis

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A dedicated team will be set up to clear the backlog of 1,400 residential permit applications.

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Clear the backlog

A dedicated team will be set up to clear the backlog of 1,400 residential permit applications.

The Department of Transport and Planning (DTP) will work with applicants, councils, and referral agencies to help facilitate decision making and avoid VCAT. 

The Minister for Planning may call in applications from VCAT that are considerably delayed. 

Make Big Decisions Faster

DTP’s existing Development Facilitation Program (DFP) has been formalised into a permanent pathway for projects that make a significant contribution to Victoria’s economy and create jobs.

The Program has been expanded to include more significant residential developments that include affordable housing, which:

• Have a construction cost of at least $50 million (in Melbourne) or $15 million (in regional Victoria); and
• Deliver at least 10% affordable housing (or otherwise agreed)

The pathways allow override of current planning controls and provisions. Timeframes for residential applications assessed by the DFP are proposed to be reduced to 4 months and remove third party review rights.

The Office for the Victorian Government Architect will have a role in all these projects.

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The changes will make it easier for families to grow, evolve and expand their living space to suit their needs.

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Increased housing choice in activity centres

DTP and the Victorian Planning Authority will play a role in preparing planning controls to facilitate housing development and associated community facilities, as well as incentivising the delivery of affordable housing, in and around 10 activity centres.

The activity centres are – Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie (Keilor Road), North Essendon, Preston (High Street) and Ringwood.

Making it easier to build a small second home

The permit requirement for a second dwelling on a lot will be removed if the new dwelling is less than 60 square metres.

This will make it easier for families to grow, evolve and expand their living space to suit their needs.

Faster permits and planning certainty

Deemed to Comply

New Deemed to Comply residential standards are to be introduced. It is envisaged that the standards will speed up decision making as Councils will only be able to assess aspects of permit applications that don’t comply.

Future Homes

The Future Homes program (intended to encourage more new builds) is to be expanded. The selection of ready-designed 3 storey apartment buildings currently provided will be built upon to include designs for 4 and 5 storey apartment buildings. The areas where Future Homes can be constructed will also be expanded. 

Planning permit exemptions for single dwellings

A single dwelling on a lot (on land not covered by an overlay):

• On lots greater than 300 square metres: No permit required
• On lots less than 300 square metres: 10 day planning permit turnaround time

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Surplus government land across 45 sites to be rezoned to deliver around 9,000 new dwellings. The expectation is that these sites will deliver a diversity of housing types and a target of 10% affordable homes.

Convert commercial buildings to residential

The Government will work with the Property Council of Australia (PCA) and the City of Melbourne to identify opportunities for the conversion and adaptive reuse of underutilised office buildings to apartments and mixed-use properties. The work builds on studies undertaken
by the PCA earlier this year.

Unlock surplus government land

Surplus government land across 45 sites to be rezoned to deliver around 9,000 new dwellings. The expectation is that these sites will deliver a diversity of housing types and a target of 10% affordable homes.

Activation of the Arden Precinct is set to be prioritised.
An EOI is expected in early 2024.

Strengthen design standards that ensure high quality builds

Victoria’s apartment design standards will be further developed. With existing conditions to be strengthened and new standards to be introduced. These are expected to be delivered accompanying the reform.

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Plan Melbourne is set to be updated and will cover all of Victoria. The focus of the plan will be the target for 70% of new dwellings to be built in established areas and 30% in growth areas.

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Prioritising housing projects for growing suburbs

21 priority projects will continue to be developed, delivering more than 60,000 homes and jobs in all parts of Victoria. 

Precinct Structure Plans for future housing in Melbourne and regional Victoria will continue to be prepared by the Victorian Planning Authority in support of continued housing growth. 

425,600 new homes are targeted to be built for regional Victoria by 2051. With a new $1 billion Regional Housing Fund to deliver more than 1,300 new homes across regional Victoria. These are areas where future housing opportunities exist.

Social housing

Redevelopment of 44 ageing high-rise public housing estates by 2051 in Melbourne. Increasing capacity from 10,000 residents to 30,000 across sites in Flemington, North Melbourne, and Carlton. Social housing in the sites will be boosted by 10%.

A new plan for Victoria

Plan Melbourne is set to be updated and will cover all of Victoria. The focus of the plan will be the target for 70% of new dwellings to be built in established areas and 30% in growth areas. Local government housing targets will be set.

The preparation of the Draft Plan for Victoria is likely to commence towards the end of the year and community engagement will commence at the start of 2024. 

Build a modern, fit-for-purpose planning system

The Planning and Environment Act 1987 is proposed to be updated. The updated Act will establish and clarify decision making timeframes, as well as clarifying roles and responsibilities.