Victorian Government changes to planning

The Victorian Government has released an updated Planning and Environment Act to increase the supply of housing in Victoria which is expected to pass through the Legislative Assembly in early February 2026. 

At a meeting of Councillors on 1 December 2025, the City of Boroondara endorsed the Municipal Association of Victoria’s (MAV) position on the Bill. You can read Dec 2025 meeting report online.  

Find out more about Updating the Planning and Environment Act on the Victorian Department of Transport and Planning website.

Prior to the updated Planning and Environment Act, the Victorian Government had already made changes through the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025.

These amendments came into operation on 15 October and 25 November 2025. 
 

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 5 pillars: 

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

The 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.

• The Victorian Government’s expanded Activity Centre Program includes 50 centres across Melbourne to fit in 300,000 more homes around train stations and tram stops on ‘well-serviced’ lines.
• The Victorian Government is preparing activity centre plans and new planning controls for these centres to increase the supply of housing.
• Phase 1 consultation closed on 30 November 2025, with Phase 2 consultation to commence in late January/early February.
• Boroondara residents are encouraged to have their say when consultation is live by visiting the Victorian Government’s ‘Engage Victoria’ website.

• The Victorian Government’s expanded Activity Centre Program includes 50 centres across Melbourne to fit in 300,000 more homes around train stations and tram stops on ‘well-serviced’ lines.
• The Victorian Government is preparing activity centre plans and new planning controls for these centres to increase the supply of housing.
• Planning for the Hawthorn, Glenferrie and Auburn train stations, as well as Kew Junction, is well under way and consultation is now complete. For draft maps of building heights and residential catchments, visit the Victorian Government’s Engage website.
   

On 11 April 2025 the Victorian Government introduced new planning controls for Camberwell Junction Activity Centre and surrounding area. 

The new planning controls include:

• Built Form Overlay introducing built form and height controls for the commercial core of the centre. The building height and setback controls are largely consistent with Council’s adopted Camberwell Junction Structure and Place Plan.
• The Built Form Overlay introduces a streamlined deemed-to-comply planning application process applies to properties in the core area. This includes removal of third-party notice and review rights, if specific building heights, street wall heights and setbacks are met. Otherwise, the standard planning processes will apply.
• Housing Choice and Transport Zone applied to the residential catchment around the centre. This new zone allows for the following building heights:

• Land	Sites smaller than 1000m2	Sites larger than 1000m2 and 20m frontage (min)*
  Zone 1	13.5m or 4 storeys high	21.5 m or 6 storeys
  Zone 2	11 m or 3 storeys high	13.5 m or 4 storeys

  *can be amalgamated

• Rezoning of some properties within the centre previously within the General Residential Zone 4 to the Residential Growth Zone or Commercial 1 Zone.
• The inclusion of the Camberwell Junction Activity Centre Plan and Council-adopted Camberwell Junction Structure and Place Plan (March 2024) in the Boroondara Planning Scheme as background documents.

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 changed:

• The Victorian Government announced the introduction of a new deemed-to-comply code assess planning permit pathway for townhouse and 3-storey apartment developments.
• The code sets 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.

The Victorian Government is developing new Mid-Rise standards for 4-to-6 storey residential developments.

The Department of Transport and Planning (DTP) has prepared the draft Mid-Rise standards to replace and extend the existing 4-storey apartment standards in Clause 57 of all planning schemes.

What’s happened so far:

• The draft standards have been circulated on a confidential basis and are not available for public distribution.
• The draft Mid-Rise standards are proposed for residential buildings of 4 to 6 storeys – making them most applicable to new developments in the following zones types:
  • new Housing Choice and Transport Zone (HCTZ)
  • Residential Growth Zones (RGZ) and
  • Mixed Use Zones (MUZ).
• A number of the proposed standards reduce and weaken the existing requirements, to manage amenity impacts such as overshadowing and overlooking.
• The draft standards will confine (or completely remove) the ability to review a planning decision through Victorian Civil and Administrative Tribunal (VCAT) if a mid-rise development is ‘deemed to comply’ with the standards.
• No evidence of architectural testing has been demonstrated in the draft mid-rise standards – making it very difficult to understand the impacts of the proposed changes.
• There is no sense of how building heights under the draft standards could or should be tailored for developments that could impact heritage areas.

The Department of Transport of Planning and Transport has advised that:

• implementation of the new Mid-Rise standards is planned by the end of 2025
• the Mid-Rise code is confidential and not intended for further circulation.

Councillors were provided with a report about the draft Mid-Rise standards at a council meeting in October (including the Department’s proposed Mid-Rise code).

You can also read Council’s submission to the Minister for Planning, proposing ways to improve the draft Mid-Rise standards and expressing concern about the confidential nature of the standards.

• The Victorian Government has introduced this as a planning approval pathway to encourage well-designed apartment and townhouse proposals.
• To qualify for this approval pathway, the development must meet the criteria:
  • 2 to 8 storeys high
  • provide at least 8 homes
  • show how the design principles have been met.
• The Minister for Planning will be the ultimate decision-maker for ‘great design’ applications. Councils will be notified if the application affects land in Boroondara and can provide feedback, which will be considered by the Minister for Planning before a decision is made.
• While the community will be able to provide feedback during the advertising period of the application, there will be no opportunity for appeals to VCAT if the Minister for Planning decides to issue a planning permit.
• For more information, visit the Victorian Department of Transport and Planning’s website: Great Design Fast Track.

• On 15 September 2025, the Victorian Government introduced clause 52.37 (Canopy trees) to all planning schemes.
• The clause requires a planning permit to remove, destroy or lop a canopy tree in specific circumstances.
• More information on this clause can be found on the Victorian Government’s website.

• On 18 December 2025, the Victorian Government introduced changes to the car parking provisions at Clause 52.06 for all planning schemes.
• The new provision updates the car parking rates for new use and development proposals, and is based on the level of public transport accessibility in the area.
• The Victorian Government did not amend or remove the Parking Overlay that exists within most of Boroondara’s commercial areas (including Camberwell, Glenferrie and Kew), which sets a rate consistent with, or above, the former planning scheme rates.
• This means that these higher rates will remain in effect until the Parking Overlay is removed, which is inconsistent with the intent of the Government reforms and Council, and will therefore need to be reviewed and addressed by the Department of Transport and Planning to ensure the new provisions can achieve their intended outcome.

• In December 2025, the Victorian Government announced a new Infrastructure Contribution Plan (ICP), which will apply to all train and tram zone activity centres.
• As part of the plan, developers will need to pay a standardized contribution of $11,350 for each additional new home they deliver.
• Contributions will also be payable for additional commercial or industrial space, depending on development size.
• Councils will retain two-thirds of the funds for local infrastructure and will have to pass on one-third to the Victorian Government for state infrastructure.
• Each Council will decide which projects to fund using the contributions collected.
• Funding is expected to contribute to a range of projects including roads, shared paths, community facilities, parks and schools. The funds have to be spent on infrastructure that benefits the area from which it was collected.
• The ICP will begin in January 2027.