If you’re a property developer active in Melbourne’s Eastern Suburbs, understanding the foundations of Victoria’s planning system is as important as understanding the latest reforms built on top of it. Amendment VC148 — gazetted in July 2018 as part of the Victorian Government’s Smart Planning programme — restructured the Victoria Planning Provisions (VPP) in ways that continue to shape how planning permits are assessed today. More importantly, the reforms introduced since 2024 have layered significant new changes on top of that foundation, creating both new opportunities and new complexities for developers.
This article breaks down what Amendment VC148 changed, why those changes still matter for your projects across councils including the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council, and how the 2024–26 wave of planning reforms — including Amendments VC257, VC267, VC274 and the Planning Amendment (Better Decisions Made Faster) Bill 2025 — builds on that earlier foundation. Whether you’re assessing a townhouse development, a medium-density subdivision, or a mixed-use project, this context may help you navigate the planning scheme more effectively.
SQM Architects has delivered projects across Melbourne’s Eastern Suburbs over many years. The information below draws on that practical experience to outline what these provisions may mean for development outcomes in your target market.
What Amendment VC148 Actually Did — and Why It Still Matters
Amendment VC148 represented the most significant restructure of the VPP since they were first introduced in 1997. Critically, it did not introduce new planning permit requirements. Instead, it reorganised, clarified, and in several areas reduced the regulatory burden on developers and businesses. Understanding this distinction matters: the amendment was primarily structural, but its structural changes have had lasting practical effects on how planning schemes are read and applied.
The most significant structural change was the replacement of the State Planning Policy Framework (SPPF) with the new Planning Policy Framework (PPF), now contained at Clauses 10 to 19 of all Victorian planning schemes. The PPF consolidated state planning policy into a single, integrated source, replacing the fragmented SPPF that had accumulated layers of policy over decades. For developers, this means policy is now easier to locate and cross-reference when preparing planning permit applications.
The amendment also introduced the Municipal Planning Strategy (MPS) as Clause 2 of each planning scheme, designed to replace the Municipal Strategic Statement over time. As councils have progressively translated their Local Planning Policy Frameworks (LPPFs) into the new PPF format, the planning scheme structure has become more consistent and navigable across different municipalities — a practical benefit when you’re working across multiple council areas in the Eastern Suburbs.
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Key Operational Changes That Affect Developer Applications
Beyond the structural reorganisation, Amendment VC148 introduced several operational changes with direct relevance to development projects. These changes remain in effect and continue to influence how planning permit applications are assessed.
Car Parking Exemptions and Reduced Rates
One of the most practically useful changes for commercial and mixed-use developers was the reform to Clause 52.06 car parking requirements. A planning permit is no longer required to reduce the number of car parking spaces for a new use of an existing building, provided the building is in a Commercial 1 Zone, Commercial 2 Zone, or Activity Centre Zone; the gross floor area is not increased; the reduction does not exceed 10 car parking spaces; and the building is not in a Parking Overlay that allows a financial contribution in lieu of parking.
Additionally, any land identified as wholly or partly within 400 metres of the Principal Public Transport Network (PPTN) now has reduced car parking rates automatically applied under Column B of Table 1 in Clause 52.06. For developers working near train stations and major bus corridors across the Eastern Suburbs — including areas around Box Hill, Ringwood, Glen Waverley, and Nunawading — this may reduce the car parking burden on new developments without requiring a separate permit application.
Permit Exemptions for Low-Impact Industrial Uses
Amendment VC148 removed planning permit requirements for certain low-impact uses in industrial zones. Convenience shops in the Industrial 1 Zone, takeaway food premises in the Industrial 1 Zone and Industrial 3 Zone, and service industries in the Industrial 3 Zone (subject to conditions) no longer require a planning permit. These changes reduced unnecessary regulatory burden on small businesses and may affect the feasibility calculations for mixed-use industrial developments.
Development Plan Overlay Clarifications
The amendment clarified the notice and review exemptions under the Development Plan Overlay (DPO), resolving a “catch-22” identified in earlier VCAT decisions. The DPO now clearly states that a planning permit must not be granted until a development plan has been prepared to the satisfaction of the Responsible Authority, unless a schedule to the overlay specifically states otherwise. This clarification provides greater certainty for staged development projects where DPO provisions apply.
VicSmart Integration
Amendment VC148 integrated Local VicSmart applications and the State and Local VicSmart information requirements into a new Clause 59. While the number and types of development eligible for VicSmart did not change at that time, the consolidation improved the clarity and accessibility of the streamlined pathway. Subsequent reforms have since expanded VicSmart eligibility further — a point addressed below.
The 2024–26 Reform Wave: Building on the VC148 Foundation
Amendment VC148 established the structural platform on which Victoria’s more recent and ambitious planning reforms have been built. Since 2024, the Victorian Government has introduced a series of amendments and legislative changes that significantly expand development opportunities — particularly for residential and medium-density projects — across Melbourne’s Eastern Suburbs.
Amendments VC257, VC267, and VC274 (February–March 2025)
These three amendments, gazetted in February and March 2025, introduced substantial new planning tools designed to support housing growth in key activity centres. The most significant new instruments include the Housing Choice and Transport Zone (HCTZ) and the Built Form Overlay (BFO), which apply to the inner and outer catchments of designated activity centres. The Priority Rezoning Zone (PRZ) was also introduced, enabling master plan-based development with streamlined notice and review provisions.
For developers in the Eastern Suburbs, these amendments may create new opportunities around established activity centres such as Box Hill, Ringwood, and Glen Waverley, where higher-density residential development may become more feasible under the new zoning framework. Each council area will implement these tools differently, and the specific application of the HCTZ and BFO to individual sites will depend on the relevant planning scheme schedule.
The Townhouse and Low-Rise Code (Clause 55 Reforms, March 2025)
Amendment VC267 introduced deemed-to-comply standards under Clause 55, which applies to the construction of two or more dwellings on a lot and residential buildings up to and including three storeys. The deemed-to-comply standards commenced operation on 31 March 2025 and provide a significant new pathway for townhouse and low-rise apartment developers.
Under the new framework, if a development meets all applicable Clause 55 standards, the Responsible Authority is not required to consider any other policy or decision guideline, and the corresponding objective is deemed to be met. Critically, where all applicable neighbourhood character and amenity standards are satisfied, there is no third-party right of appeal to VCAT. This may substantially reduce the risk profile for compliant townhouse and low-rise apartment projects across residential zones in the Eastern Suburbs.
The VicSmart process for two dwellings on a lot was also expanded, with changes taking effect on 16 October 2025 to make it easier to add a second dwelling, build two new dwellings, or subdivide a residential block into two lots.
The Housing Statement Reform Act 2025
The Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 received Royal Assent on 18 March 2025 and commenced operation no later than 25 November 2025. This legislation amended the Planning and Environment Act 1987 and the Victorian Civil and Administrative Tribunal Act 1998 to streamline planning permit decision-making and the procedures of Planning Panels Victoria and VCAT.
Key changes include new Ministerial powers to issue guidelines about the circumstances in which a planning permit may cause material detriment, new powers for Responsible Authorities to void deficient permit applications where an applicant fails to respond to an information request, and a revised process for councils to seek Ministerial authorisation to prepare planning scheme amendments. These procedural reforms may reduce delays in the assessment of planning permit applications, though outcomes will depend on individual council implementation.
The Planning Amendment (Better Decisions Made Faster) Bill 2025
The Planning Amendment (Better Decisions Made Faster) Bill 2025 passed the Legislative Council on 9 January 2026 and returned to the Legislative Assembly for further consideration. The Bill targets current planning permit processing delays — which have been reported to cost the Victorian economy significantly in project holding costs annually. Key changes include streamlined permit application processes, curbed third-party appeal rights, and modified Planning and Environment Act 1987 frameworks for housing projects. Developers should monitor the Bill’s progress as it moves through the Legislative Assembly, as its provisions may materially affect approval timelines and project feasibility assessments once fully enacted.
Practical Implications for Eastern Suburbs Developers
The cumulative effect of Amendment VC148 and the 2024–26 reform wave is a planning system that is, in principle, more navigable, more policy-focused, and more supportive of residential development than at any point in the past decade. However, the practical benefits depend heavily on how individual councils implement the new tools and how well-prepared applications are when lodged.
For townhouse and medium-density developers, the Clause 55 deemed-to-comply pathway may offer the most immediate opportunity. Projects that are designed to meet all applicable standards from the outset could benefit from faster assessment times, reduced objection risk, and the removal of third-party VCAT appeal rights. This requires careful upfront design work to ensure compliance with neighbourhood character, setback, height, site coverage, and amenity standards — areas where experienced architectural input may be particularly valuable.
For developers assessing sites near activity centres, the introduction of the HCTZ and BFO under Amendments VC257, VC267, and VC274 may open up higher-density opportunities that were not previously available under standard residential zoning. Site-specific due diligence will be essential to determine whether a particular site falls within the relevant catchment and what built form provisions apply.
Across SQM Architects’ projects in the Eastern Suburbs, the consistent finding is that early engagement with the planning scheme — including a thorough understanding of applicable overlays, zone schedules, and policy frameworks — is the single most effective way to reduce approval risk and project timelines.
Council-Specific Considerations Across the Eastern Suburbs
While the VPP provides a consistent state-wide framework, each council in Melbourne’s Eastern Suburbs applies local policies and overlay controls that can significantly affect development outcomes. The City of Whitehorse, for example, has extensive Heritage Overlay coverage in established suburbs such as Nunawading and Mitcham, while the City of Boroondara applies some of the most detailed neighbourhood character policies in metropolitan Melbourne. Manningham City Council’s planning scheme includes significant Significant Landscape Overlay and Vegetation Protection Overlay controls that affect site coverage and setback requirements.
City of Monash and Knox City Council both have substantial areas subject to Development Plan Overlays, particularly in growth corridor locations, while Maroondah City Council has been active in applying the new activity centre zoning tools around Ringwood. Understanding how each council has implemented the post-VC148 planning scheme structure — including how local policies have been translated into the PPF — is essential for accurate feasibility assessment and permit application preparation.
Frequently Asked Questions
Does Amendment VC148 still affect planning permit applications lodged today?
Yes. The structural and operational changes introduced by Amendment VC148 in July 2018 are embedded in all Victorian planning schemes and continue to apply to every planning permit application. The PPF, the reformed car parking provisions, the VicSmart integration, and the industrial use exemptions introduced by VC148 all remain in effect, alongside the more recent reforms introduced by Amendments VC257, VC267, VC274, and associated legislation.
What is the difference between the PPF and the old SPPF?
The Planning Policy Framework (PPF), introduced by Amendment VC148, replaced the State Planning Policy Framework (SPPF) and is designed to consolidate all planning policy — both state and local — into a single integrated source within each planning scheme. As councils progressively translate their Local Planning Policy Frameworks into the PPF, the policy framework becomes more consistent and easier to navigate. The PPF sits above all local policy, including the Municipal Planning Strategy, in the planning hierarchy.
How does the Clause 55 deemed-to-comply pathway affect my townhouse project?
If your townhouse or low-rise apartment project (up to three storeys) meets all applicable Clause 55 standards, the Responsible Authority is deemed to have satisfied the corresponding objectives and is not required to consider other policies or decision guidelines for those standards. Where all applicable neighbourhood character and amenity standards are met, there is no third-party right of appeal to VCAT, which may significantly reduce objection risk for compliant projects. The deemed-to-comply standards commenced operation on 31 March 2025.
Do the new car parking exemptions under VC148 apply to residential developments?
The car parking permit exemption introduced by Amendment VC148 applies specifically to new uses of existing buildings in the Commercial 1 Zone, Commercial 2 Zone, or Activity Centre Zone where the gross floor area is not increased and the reduction does not exceed 10 spaces. The reduced car parking rates for land within 400 metres of the PPTN apply more broadly. Residential development car parking requirements are governed by separate provisions, and the applicability of any exemption to a specific project will depend on the zone, overlay, and planning scheme schedule.
What is the Planning Amendment (Better Decisions Made Faster) Bill 2025 and when will it take effect?
The Bill passed the Legislative Council on 9 January 2026 and returned to the Legislative Assembly for further consideration. It aims to streamline planning permit processes, reduce third-party appeal rights, and cut average approval times. Developers should monitor its progress through the Legislative Assembly, as its provisions are not yet fully enacted and implementation timelines may vary.
How do I know if my site falls within the new Housing Choice and Transport Zone catchment?
The HCTZ applies to the inner and outer catchments of designated activity centres under Amendments VC257, VC267, and VC274. Whether a specific site falls within a catchment depends on its location relative to the relevant activity centre and the specific planning scheme schedule. A site-specific planning scheme check — including a review of the relevant zone, overlay, and any applicable schedule — may help clarify the position. SQM Architects offers a complimentary site assessment that may help clarify the position for your specific site.
Can third parties still appeal my planning permit application to VCAT?
Third-party appeal rights to VCAT remain available for most planning permit applications. However, the 2025 reforms have introduced new limitations. Under the Clause 55 deemed-to-comply pathway, where all applicable standards are met, there is no third-party right of appeal. The Planning Amendment (Better Decisions Made Faster) Bill 2025 also proposes further restrictions on third-party appeal rights, though these provisions are subject to the Bill’s final passage through the Legislative Assembly.
Conclusion
Amendment VC148 established the structural foundation of Victoria’s modern planning system, replacing the SPPF with the PPF, streamlining car parking requirements, removing unnecessary permit triggers, and making the planning scheme more accessible for developers and applicants. Those changes remain embedded in every Victorian planning scheme today. The 2024–26 reform wave — including Amendments VC257, VC267, VC274, the Townhouse and Low-Rise Code, the Housing Statement Reform Act, and the Better Decisions Made Faster Bill — has built substantially on that foundation, creating new development pathways, reducing objection risk for compliant projects, and targeting the approval delays that have historically added cost and uncertainty to development projects across Melbourne’s Eastern Suburbs.
Navigating this evolving framework effectively requires a clear understanding of both the foundational provisions and the latest reforms as they apply to your specific site and project type. Having worked across many projects in the Eastern Suburbs over many years, SQM Architects is well-positioned to help you assess how these provisions may apply to your next project.
Get Your Free Site Assessment — contact SQM Architects today to discuss how the current planning framework may affect your development opportunity.
This article provides general information about Victorian planning for property developers. It does not constitute professional advice. For specific guidance on your project, contact SQM Architects (ARBV Reg. No. 51498) for a complimentary site assessment.
