2025 VicSmart Update: What It Means for Second Homes, Dual Occupancies and Subdivisions.

Ten days.

That’s it.

Ten business days to get a planning permit.

In the world of council approvals, that’s practically warp speed.

Thanks to VicSmart, that’s how fast a permit can now be approved for small-scale developments. And as of 16 October 2025, that speed has expanded to include two homes on a lot and certain two-lot subdivisions.

Our Head Town Planner, Jordan Basford, said this is a moment worth noting. The government isn’t just tinkering at the edges; it’s quietly proving that planning can move at the pace developers need, if the rules are clear, upfront, and actually enforced.

What’s Changing?

The Department of Transport and Planning recently updated VicSmart rules under Amendment VC288, extending the 10-day fast-track assessment to:

1. Two dwellings on a lot – including second homes in eligible residential zones.
2. Two-lot residential subdivisions – including subdivisions creating at least one vacant lot.

Applications that meet all relevant criteria can skip the standard 60+ day statutory process. Even better: no neighbour notifications are required, saving applicants time and potential objections.

The new rules build on previous reforms that allowed small second homes (like granny flats) to be built without a planning permit in most cases, further streamlining the process for low-impact developments.

Where and How It Applies

The expanded VicSmart process applies to a range of zones:

• Mixed Use Zone
• Township Zone
• Residential Growth Zone
• General Residential Zone
• Neighbourhood Residential Zone
• Housing Choice and Transport Zone

Applications must meet established planning standards (Clause 55 objectives for two dwellings on a lot, Clause 59 for two-lot subdivisions), including:

• Street setback and building height objectives
• Side/rear setbacks and walls-on-boundary controls
• Overshadowing and daylight considerations
• Tree canopy and site coverage requirements

Development must still adhere to overlays like Heritage, Environmental Significance, and Special Building Overlays where applicable.

If a Second Home Can Be Approved in 10 Days, Why Are Bigger Projects Stuck?

VicSmart proves that fast, predictable approvals are possible. Delays aren’t inevitable; they’re a choice built into the system.

This initiative is also scalable, not just limited to tiny projects. Expanding to two-lot subdivisions and second dwellings shows that the fast-track principle can handle more complex, low-risk developments.

For developers, architects, and designers, the takeaway is simple: understand these new rules and levera. Projects that meet the criteria now move faster, saving you time, money and unnecessary headaches.

The Bigger Picture

VicSmart is quietly demonstrating what the broader planning system could achieve if it adopted the same principles:

• Clear criteria
• Minimal discretionary decision-making
• Reduced reliance on neighbour objections for low-risk projects

If a simple, fast-track process works for two homes on a lot, there’s no reason medium-density infill, townhouse developments, or multi-lot subdivisions can’t eventually be assessed similarly. It’s an invitation for the sector and the government, to rethink how approvals are handled.

Actionable Takeaways for Development Professionals

1. Check your projects against the new VicSmart classes.
2. Use the pre-set checklists on the VicGov website. Ensure your applications tick every box before submission.
3. Advocate for predictable approvals. Use VicSmart as a benchmark when negotiating timelines and expectations with councils.

The new VicSmart rules aren’t just a policy change, they’re a signal of what’s possible when the system prioritises clarity and speed over bureaucracy.

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