Victoria’s Latest Planning Reforms: What Homeowners and Developers Need to Know

The planning landscape in Victoria is evolving. For homeowners, small-scale developers, and consultants alike, understanding the upcoming reforms and how they translate into the everyday process of a planning permit is important.

The Planning Amendment (Better Decisions Made Faster) Bill 2025 updates the long-standing Planning and Environment Act 1987 (Vic), aiming to modernise how planning decisions are made.

Their aim is clear: cut red tape, simplify engagement, and keep housing delivery on pace with demand.

What’s driving the change?

Victoria’s population growth and housing shortage have placed mounting pressure on councils and state authorities. The government’s response has been to streamline planning processes and align them with housing delivery targets across every local government area.

According to the Victorian Premier’s office, the reforms are designed to make the system “fit for purpose”, faster, clearer, and more predictable. Industry experts, such as Urbis, have echoed this sentiment, highlighting the urgent need to reduce appeal delays and simplify community engagement processes.

What’s changing (and what to keep an eye on)

Here are the major changes in 2025 and how they affect you:

1. Faster timelines for planning permits

Simpler housing developments, such as single dwellings or dual occupancies, will soon be processed under shorter decision timeframes.

The state has indicated its ambition to set strict deadlines for specific project types, a change that could significantly reduce waiting periods for small-scale proposals.

For everyday applicants, this means the system should feel more responsive. Lodging a straightforward permit may no longer mean months of uncertainty.

2. Changes to appeal rights and engagement rules

Under the reforms, the rules around who can appeal a planning permit and how engagement is handled are being changed.

For homeowners and developers, this means:

• The scope of third-party appeals may be narrower (less risk of someone who is not directly affected appealing)
• The required public notification/engagement may be more clearly defined or reduced in complexity

These changes are aimed at reducing delays, but also mean you should carefully check your engagement obligations to ensure compliance.

3. Planning-scheme amendments, Ministerial powers and compensation rules

The reforms expand the state government’s capacity to intervene in major projects or amendments, streamlining how large-scale changes are handled. This includes clarifying compensation rules and the use of ministerial call-in powers for significant developments or state-interest projects.

If your proposal involves a planning-scheme amendment or sits within a complex overlay (such as heritage or infrastructure zones), these new processes could change your approval pathway.

4. Housing targets and rezoning pressure

Each Victorian council has now been assigned a housing delivery target. To meet them, many local governments will need to adjust their zoning or identify new growth areas. That means some areas previously off-limits for higher density may open up to development opportunities.

If you’re a homeowner or small developer, this means that:

• Some sites may become more favourable for development or may require re-zoning
• The “growth context” of your land may shift, affecting strategy and feasibility
• Council expectations may evolve to reflect the push for delivery

How homeowners and small developers should respond

These reforms create both opportunity and responsibility for those navigating the system. Here’s how to stay ahead:

1. Check your zoning and overlays now to understand how your site fits within future planning changes.
2. Consider timing. Early applications may benefit from transitional arrangements or faster pathways once the reforms are active.
3. Refine your community engagement approach. Even with simplified rules, non-compliance remains a common cause of delay.
4. Monitor council updates on scheme amendments and rezoning priorities.
5. Work with a qualified town planner who understands both the existing and new frameworks. The fundamentals may stay the same, but the process to reach approval will evolve.

What this doesn’t mean (and why caution still applies)

It’s important to note that although the reforms promise faster and more streamlined pathways, it doesn’t mean the planning permit process will become trivial overnight. Key controls (zoning, overlays, built form, amenity, environment) still apply.

Complex projects (large-scale, heritage sites, contested neighbourhoods) will still face scrutiny and may not benefit from “fast-track” status.

As councils adjust to the new framework, early projects could also experience variation in how the rules are interpreted and applied.

In summary

If you’re working on a project right now, staying informed is key.

With Planna, your reports automatically reflect the latest planning policies and reforms, so you’re always working with up-to-date information.

Want to understand how the 2025 reforms could affect your project?

Contact our team to keep your project moving forward.

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