The reform will fast-track permits for duplexes, townhouses, and low-rise apartments, cutting average assessment times by at least 60 per cent from the current 145 days to fewer than 58 days.
The changes come in response to what the government describes as a “snakes and ladders” planning system with over 40 hurdles confronting permit applicants.
Under the new system, developments meeting specific standards will receive expedited approvals.
These standards include 6-metre setbacks at the front, tree canopy and open space requirements, as well as considerations for overshadowing and sustainability.
“Homes don’t get built when they’re lost in the snakes and ladders of the planning system, so we’re fixing it,” Premier Allan said.
The reform includes controversial measures that will strip neighbours of third-party appeal rights at the Victorian Civil and Administrative Tribunal (VCAT).
While neighbours will still be notified of development applications and able to raise concerns, they will no longer be able to challenge approvals through VCAT.
New housing developments must meet strict criteria for sunlight access, storage space, room sizes, ventilation, and private open spaces.
Low-rise apartment buildings will be required to offer a mix of one, two, and three-bedroom units to accommodate diverse housing needs.
The government has already made it easier for homeowners to subdivide their land without planning permits, allowing two homes to be built on a single block.
According to The Herald Sun, councils failing to present proposals meeting new housing targets risk losing their planning powers entirely.
Councils will be responsible for assessing whether development plans meet the new townhouse code requirements and will be held to statutory timeframes of approximately 60 days.
The reform will take effect in April but won’t override existing heritage or flood overlays.
Developments failing to meet the new standards will continue through the existing planning process, including the possibility of third-party appeals.
The government is also working on another code specifically for buildings between four and six storeys.
Former Labor councillor Linda Scott highlighted challenges associated with regional housing expansion.
“We know we have a shortage of houses,” Ms Scott told Sky News.
“The problem is, you have then got to find a way to fund the roads, you have then got to find a way to fund the hospitals.”
The townhouse code was developed through consultation with 148 industry and community stakeholders and received 61 submissions from councils.
The government is also considering new laws to revise the state’s decades-old Planning and Environment Act to further reduce timeframes and costs.
“We’ve seen the Opposition leader in Victoria kind of oppose a lot of this new housing and saying we should be going out to the regions,” Ms Scott said.
“The problem is, you have then got to find a way to fund the roads, you have then got to find a way to fund the hospitals.”
