In a major step toward tackling Victoria’s housing shortage and simplifying the planning process, the Victorian Government has introduced the Townhouse and Low-Rise Code.

For years, the planning system has made it relatively easy to build either single dwellings or large apartment towers. However, medium-density developments like townhouses and low-rise apartments have often been caught in a slow and uncertain process. The new Code changes that by setting out clear, measurable standards for developments of up to three (3) storeys and introducing a ‘deemed to comply’ assessment pathway.

Under this pathway, if an application meets all the prescribed standards, objectors will not have the right of appeal, reducing risk and delays for developers and builders, improve certainty for applicants and support the delivery of more housing in well-located areas with existing infrastructure. If the standard is not met, Council is able to assess the alternative design solution against any relevant neighbourhood character objective, policy or statement set out in the scheme.

Key changes introduced by the Code include but not limited to:

• Setbacks simplified: Minimum front setback down to 6m (no more averaging).
• Tree canopy targets: 10-20% canopy cover required, depending on site size.
• Private open space: Reduced to 25 square metres at ground level.
• New site coverage rules: Sliding scale based on zone – up to 70% in some cases.
• Overlooking standard no longer applies to bedrooms.
• More shadowing now allowed for flexible design.
• Apartment-style internal amenity rules now apply to townhouses.

These changes have been introduced through Planning Scheme Amendment VC267, which was gazetted on 6 March 2025 and came into operation on 31 March 2025. It represents the first major update to ResCode in many years, and it forms part of a wider suite of reforms aimed at streamlining the residential development process and boosting housing supply across Victoria.

We have recently lodged several applications that comply with the new Code standards with Mornington Peninsula and Brimbank Councils, and we are keen to see how the new process unfolds in practice.

If you would like to learn more about the Townhouse and Low-Rise Code, visit the Victorian Planning Portal, or feel free to give us a call – we would be happy to guide you through how it might apply to your next project.