Andrews Lifts Hood on Victorian Planning Reforms

Sitting on internet servers somewhere are about 1400 planning permit applications for multi-unit housing that councils have not been able to assess for more than six months.

Around 550 of those applications have been waiting for more than a year and among them are 78 projects costing more than $10 million each. 

That equates to 4900 new homes in Victoria yet to be considered let alone delivered.

It’s the reason Victorian premier Daniel Andrews says the state needs new housing policies and planning systems. 

“Building, buying, renovating, renting—it just shouldn’t be this hard,” Andrews said.

“We need to build more homes, with the best design standards, where people want to live. 

“And that means going up and out—not just out.”

▲ Victorian premier Daniel Andrews has announced new planning reforms.

With a large list of changes announced earlier this week, the Victorian government has now revealed exactly what it means by planning system reform and has used the backlog of applications at local government level as proof it is on the right track. 

Across the last year, according to the Victorian government, the number of approved homes in the state fell by 26.1 per cent. 

Much of the data is damning—for instance, Yarra council progressed just 38 per cent of applications within the required timeframe. That council’s average processing time is 188 days. 

The Victorian Civil and Administrative Tribunal regularly handles applications that fall under the Stonnington City Council rmeit, a council that rejects almost one in five applications, citing ‘neighbourhood character’ as a key concern. 

Andrews has now promised a dedicated team to work with developers, councils and referral agencies to identify and resolve issues so that matters don’t need to go to VCAT. 

That team will be in place by November and based within the Department of Transport and Planning. It will review multi-unit projects costing more than $10 million. 

Planning minister Sonya Kilkenny will then be able to call in projects as they are reviewed. 

“Victorians deserve a planning system that works with them, not against them,” Kilkenny said. 

“It should be a clear, transparent and accountable system because Victorians deserve to know who is planning our city and state.”

▲ The City of Stonnington was mentioned by the state government as having refused a myriad of applications due to neighbourhood character concerns.

A special government gazette was released right after the announcement that Amendment VC242 had been approved. 

The amendment made changes to the Victoria Planning Provisions and all planning schemes by adding two new pathways for significant residential and office development to be submitted, assessed and approved. 

It means expanding the Development Facilitation Program so that Kilkenny as minister becomes the decision-maker for significant residential developments that include affordable housing.

These will be medium to high-density developments that cost at least $50 million in Melbourne or $15 million in regional Victoria with at least 10 per cent set aside for affordable housing. 

Build-to-rent projects will be included under this.

Kilkenny will still be able to approve projects that don’t meet this criteria provided the affordable housing criterion is met or if it demonstrates best practice design and environmental standards. 

Around 13,200 homes are expected to be delivered that would otherwise be delayed without these changes, the government believes. 

It is also expected that application timeframes for these projects will be cut from more than a year to just four months. 

There will be new Deemed to Comply residential standards for different types of homes with 14 of the current standards codified, such as north-facing windows, overshadowing open space and street setback.

Another 39 standards will be reviewed and finalised by September, 2024. All Deemed to Comply matters will not be heard by VCAT.

It will allow planners to approve permits faster for houses with assessment only needed for what doesn’t comply.

▲ Activity centres such Frankston will now have some planning decisions made by the Victorian planning minister.

The Future Homes program will also be expanded with more designs that developers can purchase and adapt to opt for a streamlined planning process.

These Future Homes plans are only available in the City of Maribyrnong but there are plans to extend it to all general residential zones where development is occurring within 800m of an activity centre or train station. 

The types of homes that need planning permits will be changed as will getting approval for granny flats.

Victoria’s design standards for apartments will also be strengthened.

Activity centres will also be a focus with 60,000 homes around 10 centres being an objective for the government for the end of 2024. 

The 10 centres will be Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood. 

Legislation including the Planning and Environmental Act 1987 will be overhauled as well. 

A timeline for this change will be announced in the next few months.

The department will also bring on 90 new planners over the next few months to help make the changes happen.