Victoria is set for its most dramatic planning shake-up in a generation, with sweeping reforms aimed at unblocking housing supply, cutting red tape, and speeding up approvals that have long frustrated developers, builders, and agents.
The Allan Labor Government has introduced the Planning Amendment (Better Decisions Made Faster) Bill 2025, which promises to modernise the Planning and Environment Act 1987 and bring what Premier Jacinta Allan calls Victoria’s “old-fashioned NIMBY planning laws into the modern era.”
“Victoria’s planning laws were written decades ago – now we’re bringing them into the 21st century,” Premier Allan said.
“We want a planning system that makes better, faster decisions because we want more homes for young people.”
Streamlined approvals
Under the Bill, planning approvals will be divided into three streams to match project complexity.
Stand-alone homes and duplexes would be approved within 10 days, townhouses and low-rise developments within 30 days, and larger apartment projects within 60 days.
“These three streams will slash timeframes so homes can get off the ground sooner,” the release states.
Currently, most planning permits take an average of 140 days to process — stretching to more than 300 days when objections are lodged.
Common-sense appeal rights
The reforms also propose “common sense appeal rights,” reducing third-party objections that have historically delayed housing projects.
For stand-alone homes, duplexes, townhouses, and low-rise apartments, no third-party appeals would apply.
For higher-density developments, only directly impacted neighbours will be notified and able to object.
“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,” said
Minister for Planning Sonya Kilkenny.
“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.”
Cutting delays and driving supply
The Bill also gives councils and the Government a faster, simpler way to update local planning rules.
Minor adjustments, such as zoning boundary fixes or local policy changes, would be processed quickly, while major re-zonings would still undergo detailed review.
Together, the changes are expected to unlock more than $900 million in economic value each year, helping accelerate new home construction and ease pressure on the housing market.
Premier Allan said the reforms build on the state’s broader housing initiatives, including setting local government housing targets and promoting more medium-density homes near transport corridors.
