Victorian government overhauls planning system to fast-track housing approvals across Melbourne
The Victorian government has just introduced sweeping new planning laws that will substantially change who can object to new developments.
The Planning Amendment (Better Decisions Made Faster) Bill 2025 represents the biggest shake-up of Victoria’s planning system since 1987. Minister for Planning Sonya Kilkenny introduced the bill to state parliament on 28 October, promising to slash approval times and cut through the red tape that’s been holding up housing projects for years.
Here’s the controversial bit: under the new rules, Melburnians will lose the right to object to low-rise apartment developments entirely, and all apartment developments unless they’re direct neighbours. The government is scrapping Victoria’s famously broad third-party appeal rights, which currently allow anyone — even people living nowhere near a proposed development — to lodge objections. That system has been blamed for delaying housing projects for years, but it’s also been a key way communities have had their say on local development.
Planning Amendment (Better Decisions Made Faster) Bill 2025
- Introduced to Victorian parliament on 28 October 2025
- Creates three separate approval pathways based on project size
- Stand-alone homes and duplexes: 10-day approval timeline with no public notice or appeal rights
- Townhouses and low-rise apartments: 30-day approval timeline with no public notice or appeal rights
- High-density apartments: 60-day approval timeline with notice and appeal rights only for direct neighbours
- Expected to unlock more than $900 million in economic value annually
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The new system divides projects into three streams based on complexity. Simple developments like single homes and duplexes will zip through in 10 days, townhouses and low-rise apartments in 30 days, and larger apartment buildings in 60 days. Currently, planning permits take an average of 140 days to approve, or more than 300 days if someone objects.
For stand-alone homes, duplexes, townhouses and low-rise apartment developments, there will be no public notice period and no third-party appeal rights at all. Only high-density apartment projects will trigger notifications, and even then, only neighbours in the immediate area can lodge appeals.
“Neighbours have a right to their say about a high-density development, but new homes shouldn’t be delayed by people who don’t live anywhere near a proposed project,” planning minister Sonya Kilkenny said. “It’s not common sense.”
“We’re fixing a planning system that’s been slowing things down – this new Bill is creating clearer rules, faster decisions, and fewer delays for people trying to build a home.”
The reforms also streamline how councils update their planning schemes. Simple changes like fixing zoning boundaries will become much easier, while more complex proposals will still face detailed assessment. The Victorian government says the changes will help meet housing targets set for every local council area and get more homes built near public transport.
The bill updates the Planning and Environment Act 1987, which the government says has created a one-size-fits-all approach that treats single homes the same as multi-storey developments. Whether Melburnians agree this trade-off is worth it for faster housing approvals remains to be seen.
“Victoria’s planning laws were written decades ago – now we’re bringing them into the 21st century,” premier Jacinta Allan said. “We want a planning system that makes better, faster decisions because we want more homes for young people.”
“Victoria leads the nation when it comes to building and approving homes – but we know the system needs to move faster. That’s exactly what this bill will do.”
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