Victoria’s planning system is set for its biggest overhaul in decades, with the Victorian Government introducing sweeping reforms designed to cut delays and boost housing supply.
Planning Minister Sonya Kilkenny introduced the Planning Amendment (Better Decisions Made Faster) Bill 2025 to Parliament, updating the Planning and Environment Act 1987. The Bill aims to modernise a system long criticised for being slow and outdated, with the government saying it will “get things built faster so more young people can have a home of their own.”
Currently, planning permits take an average of 140 days to be approved—stretching beyond 300 days if objections are raised. Under the new Bill, projects will be assessed under three streamlined pathways. Standalone homes and duplexes will be approved in 10 days, townhouses and low-rise developments in 30 days, and larger apartment buildings in 60 days.
“These changes mean simpler projects won’t get stuck in the same queue as major developments,” Ms Kilkenny said. “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 tighten appeal rights, which currently allow almost anyone to object to a development, regardless of where they live. The new framework restricts appeals for small-scale housing—such as homes, duplexes, and low-rise apartments—removing the requirement for notice or third-party objections. For higher-density projects, only residents directly impacted will have the right to appeal.
“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. It’s not common sense,” Ms Kilkenny said.
The Bill will also simplify how local councils update their planning schemes. Small technical amendments like fixing zoning boundaries or adjusting local policies will move faster, while major changes such as rezoning for new uses will still go through detailed scrutiny.
Premier Jacinta Allan said the changes bring Victoria’s planning laws “into the 21st century”. “We want a planning system that makes better, faster decisions because we want more homes for young people,” she said. “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.”
The government estimates the reforms could unlock more than $900 million in economic value each year by getting projects off the ground sooner. They build on earlier steps, including housing targets for every local government area, unlocking land near public transport, and easing restrictions on townhouse construction.
If passed, the Bill will reshape how Victorians plan, build, and approve housing—replacing a one-size-fits-all system with a more practical and flexible approach aimed at cutting red tape and speeding up delivery.
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