Victoria’s Housing-Statement Reform Package: What’s Happened and Why It Matters

Meanwhile, five statewide planning-scheme amendments have already taken effect, creating faster, largely notice-free approval pathways in activity-centre catchments and low-rise suburbs. Together, the statutory and Victoria Planning Provisions (VPP) changes tighten Council time frames, extend default permit life, and introduce new consumer safeguards for residential tenants.

Note: A “VC amendment” makes changes to the VPP and one or more planning schemes across the state. For brevity we refer to each amendment by its “VC” code throughout this Directions article.

PART A – PLANNING SCHEME CHANGES (IN FORCE NOW)

Statewide Planning Scheme Amendments – February - March 2025

The VPP have introduced new zones, overlays and codes aimed at accelerating housing delivery in and around key activity centres.

1. Amendment VC257 – Housing Choice & Transport Package

(Gazetted 25 February 2025)

What it does
Creates two new planning tools that work together inside activity-centre catchments:

*VPP*	*Where it sits*	*Purpose*	*Headlines*
*Housing Choice & Transport Zone (HCTZ)*	*Clause 32.10*	Applies to the inner (≈400 m) and outer (≈800 m) catchments around selected centres.	• Retains existing permit triggers but encourages mixed-density housing. • Replaces current residential zones in the catchments.
*Built Form Overlay (BFO)*	*Clause 43.06*	Applies to the activity-centre core.	• Sets mandatory and discretionary design envelopes. • Gives a notice-free permit track when every numeric standard is met. • Lets a schedule trade extra height/FAR for a secured public benefit (e.g. affordable housing) via s 173 agreement. • Typical height range: 3–12 storeys (up to 20 in the largest centres).

Roll-out so far

GC252 (11 April 2025) inserted HCTZ and BFO controls into 10 pilot centres: Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie (Keilor Rd), North Essendon, Preston (High St) and Ringwood. Land inside some of these cores was also rezoned to Commercial 1 (C1Z) or Residential Growth (RGZ) to match intended outcomes. A further 50 centres along major rail and tram corridors have been earmarked for future rounds.

2. Amendment VC267 – Townhouse & Low-Rise Code

(Gazetted 31 March 2025)

What it does

*Clause*	*Applies to*	*Key change*	*Effect*
*Clause 55* – Townhouse & Low-Rise Code	2+ dwellings ≤ 3 storeys	Old ResCode replaced with new “deemed-to-comply” standards.	Applications that tick every box are exempt from third-party notice and review.
*Clause 57* – Four-Storey Apartment Standards	4-storey apartment developments	New performance standards (no deemed-to-comply route).	Third-party rights remain but assessment metrics are clearer.

Transitional protection – applications that were lodged before 6 March 2025 may continue under the former ResCode if preferred.

3. Amendment VC274 – Precinct Zone (PRZ)

(Gazetted 28 February 2025)

What it does
Introduces Clause 37.10 – Precinct Zone, tailored for large precincts such as Suburban Rail Loop station areas.

*PRZ feature*	*How it works*
*Applied zones*	The schedule can “import” use controls from any state-standard zone (e.g. C1Z, RGZ).
*Built-form standards*	Mandatory or discretionary deemed-to-comply metrics can be set.
*Master-plan trigger*	A schedule can require an endorsed master plan before any permit issues (similar to a Development Plan Overlay).
*Notice & review*	Default exemption from all third-party rights; a schedule can selectively “switch on” notice/review if needed.
*Transitional clause*	Schedules may protect existing applications and permits; if omitted, the PRZ applies immediately.
*Public-benefit uplift*	Schedules may let height/FAR limits be exceeded in exchange for a defined community benefit secured by s 173 agreement.

Why these amendments matter

Developers & landowners – notice-free, time-certain permit pathways now exist for compliant projects in the pilot centres and for well-designed low-rise infill sites across Victoria.
Councils – assessment templates and public-consultation protocols must be updated to reflect new notice exemptions and clause numbers.
Communities – clearer, height-controlled envelopes replace ad-hoc character tests, but objector rights are reduced if projects hit the new numeric standards.

Together, VC257, VC267 and VC274 set the statutory foundation for delivering Victoria’s target of 800 000 additional homes by 2034 in locations with existing transport and services.

PART B – PLANNING & ENVIRONMENT ACT CHANGES (START 25 NOV 2025*)

These amendments insert new powers into the Planning and Environment Act 1987 (Vic). They will commence automatically on 25 November 2025 unless an earlier proclamation is published.

Low-impact amendment class – Councils may adopt minor rezonings and mapping corrections without Ministerial authorisation or a panel
Proponent-led amendments – applicants can lodge scheme changes with enforced Minister-set timelines
10-day “silence-means-yes” rule – Councils can proceed if the Minister does not respond to an authorisation request within ten business days
Deficiency-notice process – Councils must issue any further-information request within five days; applicants get five days to respond
Longer default permit life – three years to commence, five years to complete development
VCAT case-management powers – grouping of repetitive objectors, on-the-papers hearings and summary dismissal of weak claims
Metropolitan Planning Levy rebate – near-identical repeat applications may be exempt.

*Commencement date fixed by s2 of the Act (no proclamation issued to date).

PART C – RENTAL-MARKET REFORMS (ALSO START 25 NOV 2025)

Part 9 of the Act creates Victoria’s most significant tenancy overhaul since 2021.

No-fault evictions abolished – all notices to vacate must rely on a prescribed ground
90-day notice periods – apply to rent increases and all just-cause evictions
Ban on rent bidding – prohibits soliciting or accepting offers above the advertised price
Fee bans – no charges for rental applications, background checks or card-payment surcharges
Standard application form – mandatory statewide template
Annual smoke-alarm checks & stronger minimum standards – commence 30 Oct 2025
Rental Dispute Resolution Victoria – compulsory conciliation before any VCAT action.

PART D – WHAT IT MEANS IN PRACTICE

There are a number of significant impacts from these planning and tenancy reforms. They are summarised below for developer and landowners, Councils and referral authorities, renters, landlords and managing agents, as well as financiers and investors

For developers & landowners

Immediate uplift – Sites inside pilot activity-centre catchments or meeting Clause 55/57 metrics can secure notice-free permits now.
Strategic timing – Projects that would benefit from the longer three-year / five-year permit life should consider lodging after commencement.
Suburban Rail Loop precincts – negotiate public-benefit packages early; PRZ schedules will embed them at rezoning.
GIS (Geographic Information System) sweep – overlay the new HCTZ/BFO and PRZ layers across portfolios to reveal latent density.

For Councils & referral authorities

Process overhaul – prepare quick-issue deficiency notices and an internal list of “low-impact amendments”.
Notice clarity – update front-desk scripts to manage overlay triggers that still require advertising despite VC267/VC257 exemptions.

For renters

More protection – rent rises and evictions require 90 days’ notice and a lawful ground; bidding wars are banned.
Minimum-standard uplift – mandatory insulation, cooling and annual smoke-alarm checks from October 2025.
Faster dispute resolution – compulsory conciliation aims to resolve issues without VCAT hearings.

For landlords & managing agents

Template refresh – new lease clauses (90-day notices) and the prescribed application form are mandatory.
Compliance costs – budget ~$150-$200 per dwelling per year for smoke-alarm inspections and potential retrofit works.
Advertising rules – remove any wording that could invite rent-bidding; hefty penalties apply.

For financiers & investors

Feasibility recalibration – faster permit tracks and longer default permit life improve IRRs but be mindful of Windfall Gains Tax on rezonings.
Rental cash-flow modelling – incorporate longer notice periods and capped recovery options.

Conclusion

Victoria is combining ambitious supply targets (an average 80,000 extra homes a year to 2034) with sweeping planning and tenancy reform. For compliant developments, the live changes in the VPP shave months off approval time frames; from late November the Planning and Environment Act 1987 upgrades will further streamline scheme amendments and extend permit shelf-life. Renters gain stronger protections, while landlords face tighter compliance duties and banned fee-revenue streams. Early mapping, program-timing and document-review will determine who turns these reforms into on-ground projects—and who is left negotiating under the old, slower rules.

Further information and assistance regarding the issues raised in this article is available from the author, Darren Marx, Partner or your usual contact at Moray & Agnew.