Pathways, proportion, and process: unpacking Victoria’s proposed planning laws
Published: October 29, 2025
Part one: Five key takeaways on the proposed bill to streamline Victoria’s planning system
The updates to Victoria’s Planning and Environment Act have been tabled in Victorian Parliament this week, promising reforms that will streamline processes for Planning Permits, Planning Scheme Amendments, and implement the recommendations of the Red Tape Commissioner’s 2021 report ‘Turning Best Practice into Common Practice – Planning and Building Approvals Process Review Report to Government’.
The updates make way for better defined expectations and rights for applicants, Councils and objectors by making clearer links between planning permissions and processes or involvement.
Having reviewed the changes in full, here are our top five picks of the most impactful changes to everyday planning permit processes.
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Streamlined planning permit pathways to separate simple applications from those which require more detailed consideration. These will be considered as Stream 1, 2 or 3 applications, to be defined through the Planning and Environment Regulations. Councils can amend application types if they disagree with the classification and must provide reasons for this to the permit applicant. For lesser ‘Stream 1’ permit applications, these will be supported by shorter timeframes for further information requirements, the ability to exempt notice, and ‘deemed to comply’ referrals and approvals.
Key takeaway: We see opportunity for staged approvals to isolate works which are simpler or compliant and can move directly through approvals without notice. -
Public notification (and therefore objector rights) changes to allow further definition of notice (or exemption) depending on classification of Stream 1, 2 or 3 use and development applications. Councils will have greater ability to dismiss objections which must be relevant to the permit approvals and, dependant on the application type, reflect the location of the objector.
Key takeaway: These changes support a system that provides thought and engagement with the right people for the right reasons. -
Introducing deemed approval in Victoria which will place pressure on external authorities and local government to review, respond, and process applications within the prescribed time frame or miss the window for consideration. Permit applicants will be able to provide the responsible authority with a conditional permit notice. The timeframes will be worked up in changes to the Planning and Environment Regulations.
Key takeaway: This more dynamic approach will assist in unlocking small approvals within an expedited timeframe. -
A clearer approach to endorsed plan considerations is welcomed – through nominated processing timeframes, potential for deemed approval (like referrals and Type 1 applications), and clarification that amendments can be considered with endorsement. Changes to the endorsed plan process reflect a commonsense approach and will vary to reflect different types of post-permit approvals.
Key takeaway: While the timeframes are yet to be defined within the Planning and Environment Act Regulations, it is reassuring that this will be consistent across Councils - providing applicants with more certainty moving into the intensive phase of design development and construction. -
Extension of Time requests will be assessed against defined requirements. These reflect and enshrine common case law tests such as changes to planning schemes, the likelihood of a new permit being granted, whether applicants intend to act on permits and time elapsed.
Key takeaway: The formalising of these considerations should provide a more balanced approach to requests to extend permits – beyond the more common focus of ‘time elapsed’ as the primary consideration.
The changes highlight the need to plan projects with a strategic focus -making best use of streamlined pathways, clearly identifying permit triggers, and planning early for effective consultation.
Potential impact of Planning Scheme Amendments
The changes to Planning Scheme Amendments follow a similar theme and bring greater guidance to a process that has long been plagued with uncertainty. Proponents of planning scheme amendments can expect:
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Processes which are more proportionate to the amendment proposed and the parties affected, by identifying low, medium and high-impact pathways.
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Introduction of new requirements for public engagement which set out how consultation and notice will be undertaken. An engagement report will be required to confirm the process and outcomes of consultation and submissions. Defined content will be identified for reports to avoid discrepancies between Councils and to respond to the scale of a proposal (low, medium, or high-impact pathways).
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Better accountability for Planning Authorities considering Proponent–led amendments. Planning Authorities will be required to provide justification for abandoning Proponent-led Amendments – with the Minister for Planning required to either support abandonment or continue the amendment (or part of it).
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A Panel process which reflects the scale of low, medium and high-impact pathways and provides better expectations for what and who will be considered. This excludes most low impact amendments from requiring a Panel and the ability for Planning Authorities to reject submissions which are misaligned to the Amendment.
Part two: How engagement expectations may change
The changes announced as part of the reforms seek to streamline processes for Planning Permits and Planning Scheme Amendments in Victoria, and will bring Victoria into line with other states, where engagement expectations are clearly set out for State and regionally significant projects.
Current state of play
The Planning & Environment Act requires that notice of the proposed development must be given to an extent determined by the responsible authority and objections can be made by anyone in the community. It also provides that all objectors, regardless of the level of impact that a proposal may have on them, have a right to appeal the approval of the planning permit to the Victorian Civil and Administrative Tribunal (VCAT), which has implications on project budgets and timelines.
The proposed changes include:
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Changes to approved engagement plans - The reforms propose to require a planning authority seeking authorisation to prepare a planning scheme amendment to develop public engagement plans as part of material to be submitted with an authorisation request to the Minister. These plans will need to demonstrate how the planning authority will undertake consultation or exhibition and notice to gather comments or submissions on a proposed amendment to a planning scheme being prepared, or to be prepared by the planning authority.
The Bill will introduce a requirement that a planning authority publish an engagement report following exhibition and review of submissions that demonstrates the outline of public engagement undertaken, the outcomes of that public engagement, a summary of submissions, including a description of any changes in response to the submission. This report will need to be available in accordance with the public availability requirements.
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Three streams for the assessment of planning permits - The assessment streams will enable the implementation of procedural steps and timeframes which are more closely aligned with the risk and complexity of any given application and will reduce the number of discretionary decisions about process that a responsible authority must make and will be proportionate to the level of impact of the proposal.
- Changes to public notification (and therefore objector rights) for low and medium impact use and development. The proposed assessment process adapts and improves the existing planning permit pathway set out in the PE Act that provides for public notice and referral where it is required and sets the tone for a consistent approach and format for public notice and exhibition.
Looking forward and the potential impact of proposed engagement changes
Implementing early engagement, and changing third party appeal rights, will maximise the time, cost and risk reduction benefits available to the individual applicant, as well as generating the maximum system benefits by reducing demands on VCAT and subsequently reducing wait and processing times.
Urbis supports this better-defined approach, as codifying this practice will ensure transparency and foster accountability and accessibility in the planning system by providing community members and other stakeholders with clarity regarding how their submissions have been considered and the extent to which the details of the amendment are proposed to change in response.
Urbis’ engagement approach is designed to support the planning submission, meet community expectations around consultation and align with the Victorian Government’s requirements for improved consultation and engagement and Public Engagement Framework and Principles for public engagement and best practice engagement
We're excited to see these reforms in action as we believe they will provide our clients with clear government expectations for community engagement, while ensuring those impacted have a voice throughout the planning and approvals process.
