The Victorian government has announced the most significant overhaul of the state's planning laws in a decade, aiming to cut approval times for stand-alone homes to just 10 days and limit third-party objection rights. Premier Jacinta Allan and Planning Minister Sonya Kilkenny revealed on Tuesday that amendments to the Planning and Environment Act 1987 are expected to generate more than $900 million in construction activity annually.
Under the proposed changes, three new planning streams will be created: 10-day approval for stand-alone houses and duplexes, 30 days for townhouses and low-rise developments, and 60 days for larger developments. This replaces the existing system where most projects undergo the same process regardless of complexity. Currently, a planning permit takes an average of 140 days, and can exceed 300 days if objections are lodged.
The reforms will scrap third-party appeal rights for homes, duplexes, townhouses and low-rise apartments, meaning only directly affected neighbours can object. For higher density apartments, appeal rights will be limited to those directly impacted. Minister Kilkenny noted Victoria currently has the "broadest" third-party appeal rights in the country, and the change will bring it in line with other states.
The Property Council welcomed the bill, with executive director Cath Evans stating it will help reduce red tape and improve efficiency. Housing advocacy group Yimby Melbourne's Jonathan O'Brien said the changes rebalance rights between current and future residents. However, the Municipal Association of Victoria criticised the lack of consultation, warning of potential erosion of public trust.
The bill will be introduced to parliament on Tuesday and is expected to face a vote in the lower house by Thursday. Premier Allan urged the Coalition to support the legislation, contrasting it with what she described as a "Nimby-blocking approach."
