Major planning reforms in Victoria

housing apartment treeline fencing and road

Victoria’s planning system is being overhauled through the state government’s Housing Statement and the new Planning Amendment (Better Decisions Made Faster) Act 2026. Together, these reforms are intended to speed up approvals, increase housing supply and move more decisions into faster, more standardised pathways.

This page explains what the reforms are, why they are happening and where you can find additional information.

Why is the state government changing the planning system?

In September 2023, the Victorian Government released Victoria’s Housing Statement which committed to reforming the planning system to boost housing supply across the state.

The Housing Statement set a target of 800,000 new homes across Victoria between 2024 and 2034, as part of a broader plan to deliver 2.24 million homes by 2051, and has triggered major changes aimed at speeding up housing approvals.

Key changes in Hobsons Bay

Most of the changes to planning introduced by the Victorian Government are state-wide or affect metropolitan Melbourne. This list identifies the key changes that impact Hobsons Bay.

Housing targets

Following the release of the draft housing targets for Victorian councils in June 2024, the Victorian Government on 24 February 24 2025 released final housing targets for each local government area within Victoria to deliver over the next 30 years.

The target for Hobsons Bay City Council is to deliver an additional 22,500 homes by 2051.

For further information refer to:

Premier's Media release

Engage Victoria

New rules and standards for residential development

The state government has introduced new state-wide deemed-to-comply residential standards for residential developments across Victoria, including:

  • Townhouses Low‑Rise Code (up to 3 storeys)
  • Mid‑rise residential buildings (generally 4–6 storey apartment buildings)
  • Reduced permit requirements for single dwellings

The deemed-to-comply nature of the new codes mean that if a development meets the standards, Council is required to issue a planning permit. Council is no longer able to consider broader issues relating to neighbourhood character, dwelling density or traffic where the minimum standards are met. 

The changes also mean that in some cases, neighbours will not receive notification of a compliant residential development application and will not have VCAT appeal rights.

Importantly, where other planning permit triggers exist (i.e. heritage overlay, flooding overlays etc.), the application will still need to comply with those provisions as well as the new code.

For more information visit – New Residential Development Planning codes

Car parking requirement changes

The state government has made state‑wide changes to car parking requirements for some developments, particularly near public transport and in activity centres.

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. 

In some cases, fewer parking spaces are required for new housing.

For more information visit - Car parking reform.

Changes to tree controls

The Victorian Government has introduced new rules that mean you may need a planning permit to remove or prune large trees on residential land. The aim is to keep and increase tree cover to make neighbourhoods cooler and more liveable.

The rules apply across all councils and often require new trees to be planted if any are removed. Councils must make decisions quickly and focus on finding a fair balance between keeping trees and allowing development.

For more information visit:
Tree protection laws and permits - Hobsons Bay
Protecting and enhancing our tree canopy for a greener Victoria

Significant landscape areas around waterways

The Victorian Government has introduced new planning controls to better protect waterways as Melbourne grows. These changes apply across many major creeks and rivers and recognise waterways as important natural and cultural assets that need to be managed consistently across council boundaries.

The reforms use a planning tool called a Significant Landscape Overlay to control development near waterways. This sets clear rules about what can be built, how close development can occur and what information must be provided. It also increases setbacks from waterways and ensures decisions focus on protecting landscape character, environmental values and community amenity.

In Hobsons Bay, this applies to land near Kororoit Creek, Cherry Creek, Skeleton Creek and Stony Creek.

To check if the Significant Landscape Overlay applies to your property, visit Vicplan.

For more information visit - Planning for our waterways.

State planning approval pathways through the Development Facilitation Program

The Victorian Government has introduced new fast‑track planning pathways for certain major projects through the Development Facilitation Program. These pathways allow some planning permit applications to be decided by the Minister for Planning, rather than Council, where projects meet state priorities such as delivering housing, jobs or investment.

While these applications are still publicly advertised and assessed against planning rules, the process can be quicker and some standard requirements may be varied. Final decisions are made by the Minister (not Council) and the decision cannot be appealed at VCAT.

For more information see - DFP expedited planning pathways guidance.

Liquor licensing

The Victorian Government has changed the planning rules for licensed premises so that a planning permit is no longer required to sell or serve alcohol. This means liquor licence approval is now managed through the state liquor licence process rather than the planning system.

A planning permit may still be needed for the use or development of land (for example, to operate a bar or restaurant), depending on the zone and other controls.

For more information see - Licensed premises.

Planning Amendment (Better Decisions Made Faster) Act 2026

The Victorian Government is updating the Planning and Environment Act to create a faster and more consistent permit system. A key change is the introduction of different 'streams' for planning permits, so simple, low‑risk applications can be decided more quickly, while more complex projects still receive detailed assessment.

The reforms also tighten how permit applications are handled. Councils will be able to check applications early and declare them invalid if required information is not provided within set timeframes. Time limits for permits will be extended to give developers more time to start and complete projects, and clearer rules will guide who needs to be notified about an application.

In addition, third‑party appeal rights will be more limited, focusing on people directly affected. Overall, these changes are designed to reduce delays, improve decision-making and make the permit process more predictable.

Some provisions are already operating from 3 June 2026, with new compliance and enforcement powers commencing from 3 August 2026. The new Act will be fully operational by 29 October 2027. 

For further information on the proposed changes to the Planning and Environment Act, see the Department of Transport and Planning webpage on updating the Act. 

 

Need help or have questions?

If you have a question about how the planning reforms may affect a property or planning permit application, you can contact Council’s Urban Planning team on 1300 179 944 during business hours.