Key Planning Updates – Victoria’s Housing Weeks Unpacked

Tania Cincotta & Chris Boocock
12 March 2025

The past two weeks have seen significant changes to Victoria’s Planning Schemes within the gazettal of several key Planning Scheme Amendments, each of which are directed to assisting the provision of additional housing within Victoria, to meet the housing needs of our State. 

Amendment VC257 – Housing Choice Transport Zone (HCTZ) and Built Form Overlay (BFO)

Amendment VC257 makes changes to the Victorian Planning Schemes to introduce the HCTZ and BFO with a view to supporting further housing growth in suitable locations (such as key activity centres), close to public transport, infrastructure and community facilities. 

The BFO (now Clause 43.06 of the Planning Scheme) is to apply to activity centres and other well-serviced locations, and provide certainty to communities, landowners and the development industry. The Overlay itself and its accompanying schedules, which are yet to be released, will set out specific design and built form requirements to facilitate the preferred scale of development in identified activity centres and priority precincts. The BFO includes the following key features:

• While applications are exempt from all notice and review provisions in the planning scheme, schedules can ‘switch on’ those provisions (supposedly on a case-by-case basis).
• Schedules are to include a development framework for each centre which will establish the planned urban structure for the land, including expected typologies (townhouses, apartments etc). These frameworks will also include detail about public open space, landmarks, heritage places and sensitive interfaces and will introduce specific controls for those areas to deal with those areas. 
• The BFO includes state-standard design and built form requirements expressed as outcomes and corresponding standards. Standards may be mandatory or discretionary and may be identified as deemed to comply. 
• Developments must meet outcomes and mandatory standards. They should meet discretionary standards and meet those deemed to comply standards and, if so, will meet the outcome for that standard. Schedules can vary outcomes and standards. 
• Schedules can specify mandatory maximum heights.
• If strategically justified, the BFO enables a schedule to specify a public benefit uplift framework where a limit or standard can only be exceeded if a public benefit is provided and secured by a section 173 agreement (i.e. provision of affordable housing / public open space / public realm works).
• The BFO can require the preparation of a master plan for specified land before a permit can issue.
• There is an opportunity to include transitional provisions. 

The Housing Choice Transport Zone (now Clause 32.10 of the Planning Scheme) will facilitate a diversity of housing at increased densities in locations around identified activity centres and other well-serviced locations with convenient access to jobs, public transport and services. The HCTZ includes the following key features:

• Notice and review provisions in the HCTZ are consistent with the notice and review provisions of other residential zones.
• Mandatory maximum building heights are specified for dwellings and residential buildings.
• Land is to be zoned as either HCTZ1 or HCTZ2. Under HCTZ1, the maximum height is 13.5 metres or 4 storeys at any point. Under HCTZ2, the maximum height is 11 metres or 3 storeys at any point.
• However, land that is a ‘large site’ as defined (i.e. a lot with an area of at least 1000 square metres and a frontage of at least 20 metres, or two or more contiguous lots of that area and combined frontage), will that the benefit of increased maximum heights (6 storeys in HCTZ1 or 4 storeys in HCTZ2).
• The maximum heights will not apply where, for example, a DDO already specifies a higher maximum building height. 
• Where land is subject to inundation, building height is calculated from the minimum floor level determined by the relevant authority and not natural ground. 
• General decision guidelines include impacts of shadow and overlooking on adjoining land in residential zones and indicate a desired transition at the corners of the zone area.
• Transitional provisions are included to ensure that current applications (or current permits sought to be amended) are not disadvantaged by the new controls in circumstances where the building height of an approved building is greater than the maximum height allowable under the new control. 

How can we help?

While the schedules to the BFO and the mapping to the HCTZ (to indicate which land to which the new controls are to relate) is yet to be released, please await further updates and we will be pleased to assist to provide advice about what these key changes may mean for your land or current or future planning permit application. 

Amendment VC267 – The Townhouse and Low-Rise Code (the Code)

On 6 March 2025, Amendment VC267 was gazetted into Victorian Planning Schemes statewide. The Townhouse and Low-Rise Code represents the state government’s successor to ResCode and will commence its operation on 31 March 2025. The intent of VC267 is to provide for a quicker, more efficient decision making process and provide certainty in relation to what is acceptable development with the aim to try and boost housing delivery.

The Amendment introduces a revised Clause 55 into the Planning Scheme which supersedes the earlier ResCode provisions, and which will apply to residential developments in residential zones of up to three-storeys. It also introduces a brand-new Clause 57 into the Scheme which will apply to applications for the construction of four-storey residential developments in a residential zone.

Importantly, the new Clause 55 seeks to entirely codify the provisions of the Code which means that where a proposal meets a Code standard, the corresponding objective to the standard is deemed to be met. The effect of this is that a responsible authority (i.e. the Council or a Tribunal on review) is prevented from considering the decision guidelines of a standard where the numeric requirements of that standard are met. Further, where proposals comply with all standards of the Code, they are exempted from third party review rights.

The Code has amended some of the previous ResCode provisions in Clause 55 by providing for more liberal standards, including street setbacks, overshadowing, overlooking. The previous ‘neighbourhood character’ standard has been deleted with the intent of the Code to not call into play general neighbourhood character considerations and a focus on the codified system to address planning permit applications under Clause 55.

Transitional provisions have been included by VC267 with the Code only intended to apply to new applications and not affect previous applications lodged before VC267 or applications to amend pursuant to section 72 of the Planning and Environment Act 1987 in relation to permits issued prior to VC267.The new Clause 57 introduces its own set of standards, however, those standards are not ‘deemed to comply’ in the same manner that they are in respect of Clause 55. Equally, there is no exemption from third party review rights for applications being considered under this Clause.

How can we help?

Best Hooper is well placed to advise you in respect of the implications of the Code, or Clause 57 to your land or current or future planning permit application, including in respect of exemptions to third party review, transitional provisions or the deemed to comply standards. Please contact a lawyer within our Planning Team to discuss further how the controls might impact you.