The Victorian Government is updating the residential planning rules in Victoria, introducing significant changes to the regulations. These updates aim to speed up housing construction, simplify the approval process, and make obtaining permits easier for homeowners and property developers. If a development meets all the requirements outlined in the new code, it can be fast-tracked through the planning process.

The Townhouses and Low-Rise Code applies to multi-dwelling developments up to three storeys. These changes are designed to create a faster, more transparent planning system with clearer assessment standards and fewer discretionary requirements.

What is changing and what does it mean for you?

Some of the key changes under the Townhouses and Low-Rise Code.

• Deemed-to-comply standards: Developments that meet all standards cannot be challenged by objectors, ensuring a faster and more predictable permit process.
• Setback changes: The minimum street setback is reduced from 9m to 6m, removing the need to match the average setback of adjoining buildings.
• Tree canopy cover requirements: Developments must provide 10% canopy cover on sites up to 1,000 sqm and 20% on larger sites. The calculation method (mature vs. planted canopy cover) remains unclear.
• Private open space reduction: The minimum private open space at ground level drops from 40 sqm to 25 sqm. Further clarification is needed on whether front setback areas will count toward this requirement.
• Site coverage limits vary by zone:  60% (Neighborhood Residential & Township Zones), 65% (General Residential Zone), 70% (Mixed Use & Housing Choice and Transport Zones). However, Garden Area requirements remain unchanged, which may still restrict overall site coverage.
• Overlooking rules relaxed: Bedroom windows are now exempt from overlooking provisions.
• Apartment-style functional layout standards now apply: Design requirements for room depths and layouts, previously applicable only to apartments, will now extend to all low-rise multi-dwelling developments.

Fast-tracked planning permit if code is met

One of the most significant changes is the introduction of new rule called “deemed to comply” standards, which will be used for assessing multi-residential developments that are three storeys or less. If a planning application meets these standards, it will be eligible for a quicker and more predictable permit process.

Once an application for town planning approval is submitted, the relevant local council will assess whether the proposed development meets the requirements outlined in the code. If it does, the development is considered “deemed to comply” and will be expedited, avoiding the lengthy planning approval process. The new code allows for faster permit approvals and increased certainty for townhouses and apartment buildings up to three storeys, provided they adhere to the new standards. Since the code already includes strong protections for neighbours, there will be no right of appeal for planning applications that meet these standards. This means that objectors can’t go to VCAT to oppose the development.

If the land or property has additional overlays, such as heritage, flood, or height restrictions, any application must comply with these regulations in addition to the townhouse code. If the code is not met, the standard planning process will apply. This means the project will go through the usual approval process and could potentially be appealed through VCAT.

When Do These Changes Take Effect?

The upcoming changes, effective at the end of March 2025, will streamline planning, assessment, and decision-making while enhancing livability, sustainability, and amenities. This ensures that residents and neighbours benefit from higher-quality new homes.