From 8 September 2025, Amendment VC282 introduced a deemed-to-comply assessment pathway and updated residential development standards under Clause 54 for dwellings on lots of less than 300 square metres

This follows similar reforms made in March 2025 to Clause 55, which introduced the Townhouse and Low-Rise Code for townhouses and apartments up to three storeys.

The changes provide greater flexibility, relax several planning controls, and enable a fast-track decision process through a VicSmart assessment pathway with a 10-day decision timeline. Key changes under the new Clause 54 include:
• A minimum street setback reduced to 6m (or to match the adjoining property setback if this is less).
• Reduced and sliding scale site coverage: 60% in the Neighbourhood Residential Zone, 65% in the General Residential Zone, and 70% in Residential Growth, Mixed Use, Housing Choice, and Transport Zones.
• Tree canopy requirements: from 1 tree on lots up to 100sqm, increasing to 3 trees on lots between 200-300sqm.
• Private open space: minimum 25sqm with a 3-metre dimension, with balconies or rooftop terraces acceptable alternatives.
• Overlooking exemptions for bedrooms.
• New sustainability standards, including rooftop solar and solar protection.

Under the deemed-to-comply framework:
• Meeting the relevant standards will “turn off” decision guidelines, broader planning scheme considerations, and third-party review rights.
• Applications that meet all neighbourhood character and external amenity standards will be exempt from third-party notice and review.
• Similar provisions apply to small second dwellings.

This amendment also aligns Clause 54 more closely with Clause 55, limits local schedule variations so that they can only be more permissive, and introduces transitional provisions to ensure existing applications or permits lodged before commencement continue to be assessed under the previous Clause 54.

These reforms are another step in the right direction of providing more dwellings for Melbourne faster. Building regulations are also expected to be updated shortly to ensure alignment with the new planning rules.

Learn more about Amendment VC282 here: http://www.planning.vic.gov.au

For advice on how these changes may affect your project, please contact us on (03) 9596 9000 or info@keenplanning.com.au.