Industry bodies welcome Victorian planning reforms

November 10, 2025 BY
Victoria planning reforms building approvals

Under Victoria's planning reforms, single homes would be approved in 10 days, townhouses and low-rise developments in 30 days and complex developments in 60 days. Photo: JAMES ROSS/AAP IMAGE

BUILDING industry bodies have described Victoria’s new planning laws as a “step in the right direction”, but has expressed concerns about the details of its implementation.

Introduced by the Victorian government in Parliament last week, the reforms aim to greatly speed up the planning approval process, with single homes approved in 10 days, townhouses and low-rise developments in 30 days and complex developments in 60 days.

Master Builders Victoria chief executive officer Michaela Lihou said the organisation was generally supportive of the intent of the reforms, given the updated bill had the potential to meaningfully reduce building approval timeframes and holding costs.

“However, as always the devil is in the detail, and we have a number of recommendations we would ask the government to consider to ensure its intended benefits are fully delivered.

“For these new planning laws to be genuinely effective, we would argue that there needs to be clear and objective guidance; transparent criteria; short and enforceable timelines; transparent reporting across councils and authorities and importantly, stable regulations developed with industry consultation.”

Ms Lihou said the move to develop three separate “risk based” planning approvals pathways for different scales of construction projects was a positive step forward.

“We would hope that this would help shorten timeframes for more straightforward approvals and planning scheme amendments and free up resources for more complex proposals, ultimately reducing uncertainty for builders.

“We commend the government on this more common-sense approach to planning approvals, which we hope will deliver greater clarity and certainty for the Victorian building and construction industry and Victorian consumers.”

The Housing Industry Association (HIA) welcomed the introduction of the bill.

Association executive director Keith Ryan said the reforms had the potential to “reboot” the Victorian government’s Housing Statement and target of building 800,000 homes in 10 years.

“HIA has long advocated for substantial planning reform including major reforms to the Planning and Environment Act.

“While the detail in this bill will need to be considered the structure of the reforms announced today are positive.

“This bill builds on other positive planning reforms introduced over the past two years.

He said the three main elements of the bill would help members of the HIA build more homes.

“Faster timelines for simpler projects by the introduction of three planning streams should help with planning approvals for detached and semi-detached homes; which continue to be the majority of new homes built.

“Common sense appeal rights will relieve VCAT of having to hear unnecessary planning appeals and provide far greater certainty for the home building industry and aspiring home owners. The removal of notice and third-party appeal requirements for lower density housing is especially welcomed.

“Faster processes for updating planning rules and planning schemes where proposed changes are simple will also be of benefit.”

The Victorian government’s 2023 Housing Statement’s target to build 800,000 homes over the next decade includes 128,600 new homes in the City of Greater Geelong and 8,000 new homes in the Surf Coast Shire.