Victoria’s planning system has been undergoing its most significant overhaul in decades, and Amendment VC165 offers a revealing case study in how the State Government approaches streamlined approvals for priority projects. While the amendment specifically targets non-government school planning permit applications, the mechanisms it introduced — removing notice requirements, shifting responsible authority to the Minister for Planning, and fast-tracking eligible projects — foreshadow the broader planning reforms now reshaping development pathways across metropolitan Melbourne.
For property developers operating in Melbourne’s Eastern Suburbs, understanding how VC165 worked, and why it matters beyond the education sector, may provide a strategic advantage. The same streamlining logic underpins newer reforms including the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 and the Planning Amendment (Better Decisions Made Faster) Act 2026 — both of which directly affect residential and mixed-use development approvals. Recognising these patterns early may help developers position projects to take advantage of evolving approval pathways.
This article outlines what Amendment VC165 changed, who it affected, the broader reform timeline it sits within, and what action-oriented developers may consider as Victoria’s planning system continues to evolve.
What Amendment VC165 Changed
Amendment VC165 introduced a new particular provision at Clause 53.19 (Non-Government Schools) into the Victoria Planning Provisions, alongside an amendment to Clause 72.01 governing responsible authority status. The amendment was designed to support the expansion and upgrade of non-government schools receiving funding under the Victorian Government’s Non-Government Schools Capital Fund 2019–20 to 2022–23.
The core change was procedural: eligible planning permit applications were exempted from the requirement to give notice and from third-party review rights at VCAT. In practical terms, this meant qualifying school projects could proceed without public advertising and without the risk of objector appeals delaying construction timelines — a significant departure from the standard planning permit process.
To be eligible under Clause 53.19, a project needed to be funded (or partly funded) by the Non-Government Schools Capital Fund and fall into one of the following categories:
- Use or development of land for a new primary or secondary school
- Construction of buildings on existing school land where the combined gross floor area of all new buildings is 5,000 square metres or greater
- Construction of additional classrooms on existing school land
- Increasing the permitted number of students associated with additional classrooms
- Removal or replacement of non-conforming or non-compliant building products on school land
Importantly, a planning permit was still required under the relevant planning controls applying to each site. The amendment did not remove the need for a permit — it streamlined the assessment process for eligible applications by removing notice and review obligations.
Who Became the Responsible Authority
One of the most significant structural changes introduced by VC165 was the shift in responsible authority. For eligible applications, the Minister for Planning — rather than the relevant municipal council — became the responsible authority. Applications were submitted electronically to the Department of Environment, Land, Water and Planning (DELWP) via Permits Online, with fees payable by EFT or credit card.
Councils were not entirely removed from the process. Where the Minister was the responsible authority, councils received a copy of the application and had 28 days to provide comment. However, councils did not retain decision-making power over eligible applications. Any applications submitted to councils prior to the approval date of VC165 remained with the relevant council and were processed under the standard planning permit application process.
This model — where the Minister assumes responsible authority for priority projects while councils retain a consultative role — has since become a recurring feature of Victoria’s broader planning reform agenda. Developers familiar with this structure may find it easier to navigate similar arrangements emerging under newer legislation.
Why This Matters Beyond Schools
Amendment VC165 was explicitly described as a temporary streamlining measure, with the provisions expected to be replaced by permanent controls for all non-government schools. However, its significance for property developers extends well beyond the education sector.
The amendment demonstrated that the Victorian Government was willing to remove notice requirements and third-party VCAT appeal rights for projects it considered priority investments — a principle now embedded in much larger reform packages. The Planning Amendment (Better Decisions Made Faster) Act 2026, which received Royal Assent on 17 February 2026, establishes three planning permit assessment streams proportionate to complexity, risk, and potential impact. Lower-impact applications may be processed and approved faster, with reduced exposure to third-party delays.
Similarly, the Housing Statement Reform Act 2025 introduced changes to VCAT powers, default permit expiry timeframes, and planning scheme amendment processes — all reflecting the same streamlining logic first tested in amendments like VC165. For developers in Whitehorse, Boroondara, Manningham, Monash, Knox, and Maroondah, these reforms may translate to materially shorter approval timelines and reduced holding costs on eligible residential and mixed-use projects.
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The Broader Reform Timeline Developers Should Track
Understanding where VC165 sits within Victoria’s evolving planning reform programme helps developers anticipate what may be coming next. Key milestones include:
- February 2025: Amendment VC257 gazetted, introducing the Housing Choice and Transport Zone (Clause 32.10) and Built Form Overlay (Clause 43.06) to support density near activity centres
- March 2025: Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 received Royal Assent, introducing changes to planning scheme amendment processes, VCAT powers, and default permit expiry timeframes (now 3 years for commencement, 5 years for completion)
- March 2025: Amendment VC267 gazetted, introducing the Townhouse and Low-Rise Code with ‘deemed to comply’ standards under an amended Clause 55 and new Clause 57 for four-storey apartments
- October 2025: VCAT amendments commenced, giving the tribunal expanded case management powers including the ability to treat multiple objectors as a group
- November 2025: Remaining Housing Statement Reform Act 2025 provisions came into operation
- February 2026: Planning Amendment (Better Decisions Made Faster) Act 2026 received Royal Assent, with default commencement of 29 October 2027
The default commencement date of October 2027 for the Better Decisions Made Faster Act provides a window for developers to prepare supporting documentation, review project pipelines, and engage with planning consultants and architects familiar with the incoming assessment stream framework.
What Developers in Melbourne’s Eastern Suburbs Should Consider
The pattern established by VC165 — streamlined pathways, reduced notice obligations, and Ministerial oversight for priority projects — is now being applied at scale across Victoria’s planning system. Developers with projects in the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council may find several action items worth considering.
Review existing permit conditions and expiry dates. The Housing Statement Reform Act 2025 extended default permit expiry timeframes to 3 years for commencement and 5 years for completion. These changes apply to permits issued both before and after the Act came into operation, provided the permit had not already expired. Developers holding permits issued under tighter timeframes may benefit from reviewing their current status.
Assess projects against the new Townhouse and Low-Rise Code. Amendment VC267’s ‘deemed to comply’ standards under Clause 55 and Clause 57 may reduce assessment complexity for eligible residential projects. Applications that meet the code’s standards could proceed without the subjective neighbourhood character considerations that previously introduced uncertainty into the approval process.
Monitor activity centre rezoning activity. With 25 new Train and Tram Zone Activity Centres announced and structure plans progressing for Suburban Rail Loop precincts, landholdings within 800 metres of designated centres may be subject to rezoning that materially affects development yield potential. Early engagement with the planning process — including submissions during public exhibition — may help developers shape outcomes.
Engage early with the three-stream assessment framework. Once the Better Decisions Made Faster Act commences, planning permit applications will be assessed across three streams based on complexity and risk. Understanding which stream a proposed development falls into — and structuring applications accordingly — may reduce approval timelines and associated financing costs.
SQM Architects has delivered projects across Melbourne’s Eastern Suburbs for over 15 years, with experience supporting repeat clients through periods of planning system change. Engaging an experienced architecture firm early in the project lifecycle may help developers navigate the transitional period as new assessment frameworks are implemented.
Frequently Asked Questions
What was Amendment VC165 and does it still apply?
Amendment VC165 introduced Clause 53.19 (Non-Government Schools) into the Victoria Planning Provisions, streamlining planning permit applications for eligible non-government school projects funded under the Victorian Government’s Non-Government Schools Capital Fund 2019–20 to 2022–23. The provisions were introduced as a temporary measure pending permanent reforms to the planning system for non-government schools. Developers should confirm current applicability with the Department of Transport and Planning for any school-related projects.
How does VC165’s approach to notice exemptions relate to current residential development reforms?
The notice exemption and VCAT appeal restriction model used in VC165 has been applied more broadly through subsequent reforms, including the ‘deemed to comply’ pathway under Amendment VC267 and the three-stream assessment framework introduced by the Better Decisions Made Faster Act 2026. Residential developers may encounter similar exemptions for code-compliant applications under the new framework once it commences in October 2027.
What are the new default permit expiry timeframes under the Housing Statement Reform Act 2025?
The Housing Statement Reform Act 2025 extended default permit expiry timeframes to 3 years for commencement of development, 5 years for completion of development, and 3 years from commencement of a use. These updated timeframes apply to permits issued before and after the Act came into operation, provided the permit had not already expired — a potentially significant benefit for developers managing projects with extended construction programmes.
Which councils in Melbourne’s Eastern Suburbs are most affected by activity centre rezoning?
Activity centre reforms under Amendment VC257 and the broader Housing Statement programme may affect landholdings near designated centres across the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council. Developers with sites within 800 metres of commercial cores in these municipalities may wish to monitor structure plan progress and engage during public exhibition periods.
Can third parties still appeal planning permit decisions at VCAT under the new reforms?
Third-party VCAT appeal rights have been modified under recent reforms, with the Better Decisions Made Faster Act 2026 reshaping notice and appeal rights so that only those directly impacted by a proposed development may appeal a decision. VCAT has also been given expanded case management powers, including the ability to treat multiple objectors with similar grounds as a single group, which may reduce the duration and cost of contested proceedings.
What is the ‘deemed to comply’ pathway and how might it benefit Eastern Suburbs developers?
The ‘deemed to comply’ pathway, introduced through Amendment VC267 under the Townhouse and Low-Rise Code, allows residential developments that meet prescribed standards to be approved without the subjective neighbourhood character assessment that previously added uncertainty to the process. For more detail on how these provisions operate, see our guide to Deemed Approval Provisions. For developers in established Eastern Suburbs municipalities where neighbourhood character objections have historically been a source of delay, this pathway may offer a more predictable approval outcome for eligible projects.
When will the Planning Amendment (Better Decisions Made Faster) Act 2026 take full effect?
The Act received Royal Assent on 17 February 2026 and has a default commencement date of 29 October 2027. This staged implementation period allows time for supporting changes to the Planning and Environment Regulations 2015, new Ministerial guidelines, and updates to the Victoria Planning Provisions. Developers should use this window to review project pipelines and engage with planning and design consultants familiar with the incoming framework.
Conclusion
Amendment VC165 may have been a targeted, time-limited measure for non-government school projects, but its underlying logic — streamlined pathways, reduced notice obligations, and Ministerial oversight for priority development — has become the template for Victoria’s most significant planning reforms in decades. For property developers in Melbourne’s Eastern Suburbs, the lesson is clear: the planning system is moving toward faster, more predictable approval pathways for projects that align with State Government priorities, and early preparation may be the difference between capturing that advantage and missing it.
With the Better Decisions Made Faster Act 2026 commencing in October 2027 and activity centre rezonings progressing across Whitehorse, Boroondara, Manningham, Monash, Knox, and Maroondah, now is an appropriate time to assess your project pipeline against the incoming framework. SQM Architects has supported developers across Melbourne’s Eastern Suburbs for over 15 years, with experience supporting repeat clients through periods of planning system change.
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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.
