Victoria’s planning system is set to undergo its most significant reform since 1987 with the introduction of the Planning Amendment (Better Decisions Made Faster) Bill 2025, introduced to Parliament in October 2025. The Bill proposes substantial amendments to the Planning and Environment Act 1987 (PE Act) aimed at establishing a more effective and efficient statutory planning framework. The reforms are intended to support delivery of Victoria’s Housing Statement and the actions of Plan for Victoria, including the target to deliver 2.24 million additional homes across Melbourne and regional cities and towns over the next 30 years.

Planning permits currently take an average of four to six (6) months to determine, extending to more than 12 to 18 months where objections are involved. A key reform proposed by the Bill is the introduction of three planning permit assessment streams, designed to better align statutory timeframes with development complexity:

• Low-impact development (e.g. single dwellings and duplexes): Assessed within 10 days, with no public notice or third-party appeal rights.
• Medium-impact development (e.g. townhouses and low-rise apartments): Assessed within 30 days, with public notice required only in limited circumstances.
• High-impact development (e.g. high-density apartment buildings): Assessed within 60 days, with notice and appeal rights limited to directly notified objectors.

The Bill builds on recent reforms, including Clause 54 (VC292) and Clause 55 (VC282), which introduced deemed-to-comply pathways for single and multi-dwelling developments up to three storeys. These amendments limit the application of local policy considerations, remove third-party appeal rights for compliant applications, and are intended to accelerate decision-making for lower-scale residential development.

Colleen Peterson, Acting Deputy Secretary for Planning and Land Services, has advised via LinkedIn that, subject to the Bill being passed, the reforms would be progressively implemented over approximately two years. This staged rollout would allow time for development of the supporting regulatory framework and further stakeholder engagement.

In addition to permit assessment reforms, the Bill also introduces impact-based pathways for planning scheme amendments with proportionate consultation and panel requirements, establishes a formal hierarchy of state and regional planning strategies, and reforms appeal rights, restrictive covenants, infrastructure contributions, and compensation provisions. It further strengthens compliance and enforcement powers, improves processes for Registered Aboriginal Parties and Distinctive Area Landscapes, increases flexibility in infrastructure funding arrangements, and updates parliamentary scrutiny requirements for planning scheme amendments.

Read more here: https://www.legislation.vic.gov.au/bills/planning-amendment-better-decisions-made-faster-bill-2025 If you have any questions or would like to discuss how these changes may affect your project, please contact us on (03) 95 96 9000 or at info@keenplanning.com.au.