Victorian Government changes to planning

The Victorian Government has announced on 25 February 2025 it is reviewing the Planning and Environment Act to increase the supply of housing in Victoria. The announcement has confirmed that the review will consider:

• streamlining the planning scheme amendment process and providing different pathways for different types of amendments.
• further reducing planning permit delays and blockages, including different assessment and approval processes for projects with lesser impact.

Plan for Victoria (released 28 February 2025) sets the state-wide vision for how Victoria will grow over time. The Plan replaces the existing metropolitan strategy Plan Melbourne 2017-2050 and regional growth plans.

The Plan identifies five pillars: 

• Housing for all Victorians
• Accessible jobs and services
• Great places
• Sustainable environments
• Self-determination and caring for Country. 

The stated aim of the plan is to deliver more homes, more jobs and great communities. To achieve this the plan sets out 22 actions including specific actions to increase the supply of housing in established areas, such as:

• Setting housing targets for every local council that will be included in the local planning scheme. For Boroondara the 2051 target is 65,500 additional dwellings (we currently have about 70,000). The Plan also states that the Victorian Government will step in to create housing capacity, should council fail to do so.
• Implement new planning controls to streamline planning in activity centres

Council provided feedback on the draft housing targets and the ‘8 big ideas’ in August 2024. Read the officer report and Boroondara Submission to Plan for Victoria and Draft Housing Target.

Several locations centred around train stations and trams stops in Boroondara are set to have increased medium-density housing, as announced through the Victorian Government’s media releases.

As of 28 February 2025, this includes Camberwell Junction, Kew Junction and train stations of Hawthorn, Glenferrie, Auburn, Ashburton, Riversdale and Willison.

Program and Camberwell Junction

What’s happened so far:

• In August 2024, the Victorian Government publicly released a Draft Camberwell Junction Activity Centre Plan (along with 9 other centres across Melbourne) via a media release.
• On 23 February 2025, the Victorian Government updated the Camberwell Junction Activity Centre Plan. This change reduces the boundary of the overall catchment area and differentiates between “inner” and “outer” catchment areas.
• It is now proposed that “inner catchment” areas have a height limit of 4 storeys, but up to 6 stories on large sites (over 1000m² and with a 20- metre frontage).
• The “outer catchment” areas can be up to 3 storeys, but up to 4 storeys on these larger sites. It is unclear if these are proposed to be mandatory or discretionary heights, and the planning mechanism proposed to implement them.
• Council expects the changes will be made by a Victorian Government amendment to the Boroondara Planning Scheme before the end of March.
• The changes will include new ‘deemed to comply’ standards for building heights, street wall heights and setbacks in the ‘core’ area. If a planning application meets the ‘deemed to comply’ standards, it cannot be refused a permit on the basis of those standards. If a proposal does not meet those standards, the usual decision-making pathway applies.
• Normal planning processes including notice and appeal provisions still apply in the catchments.
• Further detail can be found at https://www.planning.vic.gov.au/guides-and-resources/strategies-and-initiatives/activity-centres-program/camberwell-junction
• Amendment VC257 announced 25 February 2025 introduces new planning tools into the Victoria Planning Provisions for eventual implementation into council planning schemes. These new controls are intended to be applied to the ten pilot activity centres including Camberwell Junction and surrounding areas to facilitate increased housing. The new planning controls include:
  • Built Form Overlay (BFO) - to be applied to the commercial core of the Camberwell Junction Activity Centre; and 
  • Housing Choice and Transport Zone (HCTZ) - to be applied to an area around the commercial core (replacing the previously proposed Walkable Catchment Zone).
• These controls have not been applied to Camberwell Junction, media announcements indicate that the controls will be applied by the end of March.
• The local schedule to the BFO which will translate Council’s adopted Structure and Place Plan into the Boroondara Planning Scheme has not been released.
• The Explanatory Report justifying the amendment and providing a more detailed summary of each new planning control can be read on the Department of Transport and Panning website.
• Council is yet to receive a copy of the local schedule to the proposed new Built Form Overlay for Camberwell Junction that will translate Council’s adopted plan and associated amendment.
• The Victorian Government has made no commitments to provide funding for local services and infrastructure to support this housing growth or for the impact on tree canopy and open spaces.

• The Victorian Government’s Activity Centre Program has identified 50 centres across Melbourne to accommodate 300,000 additional homes focused around train stations and tram stops on ‘well-serviced’ lines.
• In October 2024 Hawthorn, Glenferrie and Auburn train stations and surrounding areas of potentially up to 800m from the edge of the commercial area were identified for increased medium- and high-density housing.
• On 27 February 2025, the Victorian Government announced Kew Junction, has Ashburton train station as well as Willison and Riversdale train stations (combined) as additional future activity centres. The Victorian Government will develop activity centre plans and new planning controls for these centres to increase the supply of housing.
• It is expected that this work will be completed by early 2026.
• We sent a letter to residents in these areas to inform them of the Victorian Government’s announcement.

The Victorian Government is changing the standards for townhouse and low-rise apartment buildings and how Council will assess planning permit application for such developments (including public notification and appeal rights).

What’s happened so far:

• The Victorian Government announced the introduction of a new deemed-to-comply code assess planning permit pathway for townhouse and 3-storey apartment developments. 
• Limited detail has been released but the code will set basic development standards, including (but not limited to):
  • Six metre setbacks at the front, and setbacks at the side and rear
  • Tree canopy and open space requirements, including protecting trees that are a certain size
  • A mix of 1-, 2- and 3-bedroom apartments in projects of a certain size
  • Overlooking and overshadowing
  • Sunlight, storage, room size, ventilation and private open space for residents
  • Sustainability and energy efficiency
• The deemed-to-comply nature of the code means that if the standards are met, a planning permit must be issued. While nearby properties will still be notified there will be no opportunity to appeal the decision. If a proposal does not meet the deemed-to-comply standards, the usual planning permit process with appeal rights will apply. 
• Where other planning permit triggers exist (e.g. Heritage Overlay, environmental overlays etc.) the application will still need to comply with those provisions as well as the new code. 
• Details of the relevant standards will not be known until the amendment is gazetted. The new code will come into effect in April 2025. 
• The Victorian Government has also stated they are developing a code for buildings between four and six storeys to be introduced at some stage.