Context

The Victorian Government has set a target for an additional 45,500 more dwellings in Banyule by 2051 along with a series of reforms to planning for housing to achieve this. Council's own Housing Strategy outlines Banyule's capacity for meeting and exceeding the Governments targets by focusing development in key areas while maintaining character and tree canopy. Council's Urban Forest Strategy outlines Council's ambitious plans to achieve 30% tree cover across all of Banyule by 2050.

Council Concerns

While Council supports planning reform and increased housing, we have a number of concerns with how the State is approaching the changes including;

• lack of consultation with Council and the community in preparing and implementing the reforms
• loss of decision-making for Council, for example see Projects with Minister for Planning
• reducing the ability for Council to require outcomes which support Council and community priorities, such as retaining and promoting 30% tree canopy across Banyule, better design standards, and neighbourhood character
• lack of co-ordination with Council to ensure the reforms are effectively implemented and beneficial for the Banyule community.

Key changes

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 involve Banyule.

1. Planning and Environment Act review
2. Plan for Victoria and housing targets
3. Townhouse and Low-Rise Code and the 4 Storey Apartment Standards
4. Great Design Fast Track
5. Inclusion of Heidelberg into the Victorian Government's Activity Centres Program
6. Powers for the Victorian Government to approve significant developments

Learn more about each of the changes using the tabs below.

Planning and Environment Act review

In February 2026 the Planning Amendment (Better Decisions Made Faster Act 2026) was passed by Victorian Parliament. The review of the Act was an action from the Governments Housing Statement (2023) which sought to increase the supply of housing in Victoria. Key initiatives of the Planning Amendment Bill are:

• Updated objectives for the Planning system
• Different planning scheme amendment processes and providing different pathways for different types of amendments.
• Greater involvement of traditional owners in planning scheme amendments.
• New process for proponent initiated planning scheme amendments.
• New pathways for planning permit applications.
• Updates to the Infrastructure Contributions Scheme.

What this means for Banyule

There will be new types of planning permits and planning scheme amendment “pathways”. For Planning Scheme Amendments, the Minister may change the how amendments are pursued chosen by Council.

Plan for Victoria and housing targets

Plan for Victoria, released 28 February 2025, sets the state-wide vision for how Victoria will grow over time. The Plan replaces the existing metropolitan strategy Plan Melbourne 2017-2050 and regional growth plans.

The Plan identifies five pillars:

• Housing for all Victorians
• Accessible jobs and services
• Great places
• Sustainable environments
• Self-determination and caring for Country.

The stated aim of the plan is to deliver more homes, more jobs and great communities. To achieve this the plan sets out 22 actions including specific actions to increase the supply of housing in established areas, such as:

• Setting housing targets for every local council that will be included in the local planning scheme.
• For Banyule the 2051 target is 45,500 additional dwellings. The Plan also states that the Victorian Government will step in to create housing capacity, should council fail to do so.
• Implement new planning controls to streamline planning in activity centres

What this means for Banyule

Banyule will have to demonstrate a housing capacity of 45,500 additional dwellings by 2051 in it’s future planning scheme amendments.Council provided feedback on the draft housing targets and the ‘8 big ideas’ in August 2024. Read the officer report and Council submission to Plan for Victoria and draft housing targets (PD, 507KB)

Townhouse and Low-Rise Code and the 4 Storey Apartment Standards

The ‘Townhouse and Low-Rise Code’ (the Code) (amended Clause 55) and ‘Residential Buildings of Four Storeys’ (new Clause 57), set new standards for residential developments so they respond to neighbourhood character, protect amenity and are liveable and sustainable.

The amendments were approved on 6 March 2025 and apply to all applications lodged after that date. For applications lodged or for amendments to permits approved prior to this date, the previous requirements of Clause 55 continue to apply.

The Code applies to residential developments up to 3 storeys in height and introduces ‘deemed to comply’ standards. While nearby properties will still be notified of a proposal and have the opportunity to comment, if all standards are met, a planning permit must be issued and there will be no opportunity to appeal the decision. Council's consideration is also limited to the matters contained within the Code and is not required to consider the wider Planning Policy Framework, the purpose of the zone or decision guidelines in Clause 65 of the Planning Scheme.

If a proposal does not meet the ‘deemed to comply’ standards, or there are other planning controls requiring consideration (such as overlays applying to the site), the usual planning permit process including appeal rights will apply.

The new clause relating to four storey developments includes similar standards to the Code. However it does not include a ‘deemed to comply’ pathway and, even if a standard is met, Council must still consider relevant policy, purpose of the zone and decision guidelines contained within the Planning Scheme. Decisions made under this clause will continue to have appeal rights.

What this means for Banyule

For developments up to 3 storeys there is limited opportunity for Council assessment where the deemed-to-comply standards are met. Neighboring properties will be notified and can comment, but there are no opportunities for a VCAT appeal if the application meets "deemed to comply" standards. Council supports the need for planning reform but not if it comes at the expense of local voice in planning and leads to the loss of local character, sustainability and tree canopy.

Great Design Fast Track

The Victorian Government has introduced this as a planning approval pathway to encourage well-designed apartment and townhouse proposals.

To qualify for this approval pathway, the development must meet the criteria:

• 2 to 8 storeys high
• Provide at least 8 homes
• Show how the design principles have been met.

The Minister for Planning will be the ultimate decision-maker for ‘great design’ applications. Councils will be notified if the application affects land in Banyule and can provide feedback, which will be considered by the Minister for Planning before a decision is made.

While the community will be able to provide feedback during the advertising period of the application, there will be no opportunity for appeals to VCAT if the Minister for Planning decides to issue a planning permit.

For more information, visit the Victorian Department of Transport and Planning's website: Great Design Fast Track.

What this means for Banyule

Less involvement from Council and locals in reviewing and accessing applications. Less consideration of local character and no opportunities to appeal decisions.

Inclusion of Heidelberg into the Victorian Government's Activity Centres Program

Even though each Council previously had the primary role of planning its municipality's major activity centres, one of the Victorian Government's planning reforms is that its Activity Centres Program has assumed control for the planning of 60 centres. The Victorian Government announced on 27 February 2025 that one of the centres to be included in this program is the Heidelberg Major Activity Centre (MAC).

A particular aim of the state government in directly planning these centres is to set a planning framework which significantly increases the supply of housing in and around MACs. One method sought by the state government to do this is to apply a new zone, the Housing Choice and Transport Zone (HCTZ), around activity centres. This zone can allow higher development than typically permitted in residential areas on the periphery of activity centres.

It is frustrating for Council that the Heidelberg MAC has been included within the Activity Centres Program as Council had as recently as 10 February 2025 adopted a new structure plan, with a new planning scheme amendment to support the plan, for the Heidelberg MAC. Development of this new structure plan and amendment had considered community views and those of an independent planning panel to best balance providing more housing and growth with appropriately protecting the character of the activity centre, including in sensitive residential areas within the periphery of the centre.

What this means for Banyule

We considered this item and made a clear and strong submission to the government calling for the extensive work that Council did on its own Heidelberg Structure Plan to be honored and included.

Powers for the Victorian Government to approve significant developments

In November 2023, the Victorian Government introduced the Development Facilitation Program. It inserted new Victorian Planning Provisions into planning schemes, including Banyule's scheme. These provisions give authority to the Victorian Government to provide an accelerated assessment pathway and directly approve planning permits for either significant economic development, significant residential development with affordable housing, or development exhibiting great design. This is subject to each planning permit application meeting certain criteria. The provisions are in the Planning scheme at:

• Clauses 53.22 — Significant Economic Development
• Clause 53.23 — Significant residential development with affordable housing
• Clause 52.20 — Government Funded Housing Development
• Clause 53.20 — Housing by or on behalf of Homes Victoria.

What this means for Banyule

Less involvement from Council and locals in reviewing and accessing applications and less consideration of local character. The Victorian Planning Minister already holds authority to give permits for certain types of development and can also call-in developments and applications. See a list of permits issued by the Minister.

Council advocacy

Appropriate housing reform is one of Council's key advocacy priorities. Council has and continues to strongly voice its concerns to the Victorian Government. We've received a number of Council reports on the changes and have committed to ongoing advocacy to make sure that planning respects local voices, tree canopy and character while providing the housing needed.

Below you can find some of the key Council's discussion on this issue at Council meetings and find links to the reports and submissions we have made to Government expressing our concerns.