A wave of legislative reform is reshaping how Melbourne property developers interact with the Environment Protection Authority Victoria (EPA) during the planning permit process. With the Planning Amendment (Better Decisions Made Faster) Act 2026 receiving Royal Assent on 17 February 2026, and complementary EPA consultation requirements already in effect, developers working across Melbourne’s eastern suburbs may need to rethink how they structure their pre-application processes — or risk delays that could add months to already stretched project timelines.
The core shift is this: environmental consultation is no longer something you address after lodgement. Under the updated framework, EPA engagement is increasingly required before you submit your planning permit application. For developers in the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council, understanding what has changed — and when — could be the difference between a streamlined approval and a costly, drawn-out assessment process.
This article outlines what has changed, which projects are affected, the key timeframes you need to be aware of, and the practical steps developers may want to consider taking now.
What Has Changed: The New EPA Consultation Framework
The Victorian EPA consultation framework has evolved significantly across 2025 and into 2026, driven by two interconnected reform streams. The first is Ministerial Direction No. 19 (MD19), which requires planning authorities to seek written EPA advice early in the planning scheme amendment process for proposals that may result in significant environmental, amenity, or human health impacts from pollution and waste. While MD19 primarily targets planning authorities, its practical effect flows directly to developers — particularly those pursuing large-scale or mixed-use projects that require scheme amendments as part of their approval pathway.
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The second, and more immediately relevant change for many developers, involves the EPA’s mandatory pre-application engagement requirements for Development Licences (DLs). Finalised in April 2025, these rules require developers seeking a DL — typically required for industrial, waste management, or high-impact uses — to conduct community engagement before lodging their application. Critically, applications submitted without an accompanying Engagement Report are now deemed incomplete and will not be accepted for assessment. There is no grace period and no workaround.
Layered on top of this is a new Ministerial Direction on Climate Change Consideration (September 2025), which requires planning authorities to prepare a Climate Change Consideration Report for relevant amendments. This document must demonstrate how a proposal adapts to climate risks and works to minimise emissions. For developers pursuing rezonings or large-scale residential projects, this adds a substantive new reporting requirement to the pre-application phase.
The Three-Tier Permit System and EPA Referrals
The Better Decisions Made Faster Act 2026 introduces a risk-based, three-tier assessment framework that replaces the previous standard permit process. Understanding where your project sits within this framework is essential, because EPA referral obligations differ significantly across the three streams.
- Type 1 (10 business days): Low-risk, simple projects such as single dwellings and minor subdivisions. EPA referral is rarely required. Includes deemed approval provisions — if no decision is made within 10 business days, the permit may be granted automatically.
- Type 2 (30 business days): Medium-density housing including townhouses and low-rise apartments up to 3 storeys. EPA referral is assessed on a case-by-case basis depending on site conditions, overlays, and proximity to sensitive uses. Limited third-party appeal rights apply.
- Type 3 (60 business days): Complex or high-impact developments. EPA referral under Clause 66 is mandatory for specific high-risk uses, including industry with significant emissions and waste resource recovery facilities. Standard notice requirements and limited appeal rights for directly impacted parties apply.
A critical operational point: the 10-day and 30-day pathways operate on a front-loaded documentation model. There is no longer a "request for further information" (RFI) buffer for Type 1 and Type 2 applications. All technical reports — including EPA engagement reports and Preliminary Risk Screen Assessments (PRSAs) for contaminated land — must be submitted at lodgement. Incomplete applications will be rejected at the initial check stage, which the responsible authority may conduct within five business days of receipt.
Who Is Affected: Eastern Suburbs Developers
Not every project in Melbourne’s eastern suburbs will trigger EPA consultation requirements. However, the range of affected development types is broader than many developers may assume. The following categories may require EPA engagement as part of the planning permit or Development Licence process:
- Industrial or commercial developments involving emissions, noise, or waste management
- Residential or mixed-use projects on land with a history of industrial use (contaminated land)
- Developments near waterways, including those subject to Significant Landscape Overlays
- Large-scale projects (typically >1,000sqm) in councils implementing green infrastructure requirements
- Projects requiring planning scheme amendments where MD19 triggers EPA written advice
- Developments near the Suburban Rail Loop corridor, now subject to updated Clause 53.21 (Amendment VC297)
For developers active in the City of Monash, the council is actively implementing the Townhouse and Low-Rise Code (Clause 55 under ResCode) for all developments up to 3 storeys, removing many local variations to setbacks and site coverage. This may streamline some approvals, but does not remove EPA obligations where contaminated land or environmental overlays are present. Manningham City Council and Maroondah City Council both contain significant areas of environmental sensitivity, including waterway corridors and vegetation overlays, where EPA referral or consultation may be triggered even for medium-density residential projects.
Contaminated land remains one of the most common EPA triggers for eastern suburbs developers. Former industrial precincts in Whitehorse and Monash, in particular, may require a PRSA before a planning permit application can be lodged under the faster pathways. The 2025 updates to Ministerial Direction No. 1 (MD1) allow for more flexible scoping of contamination audits, which may reduce the time and cost involved — but only if the assessment is initiated early in the project lifecycle.
Key Timelines and Commencement Dates
Understanding the sequencing of these reforms is important for project planning. The following timeline outlines the key milestones developers should be aware of:
- April 2025: EPA mandatory pre-application engagement requirements for Development Licences take effect. Engagement Reports become a compulsory lodgement document.
- September 2025: New Ministerial Direction on Climate Change Consideration issued. Climate Change Consideration Reports required for relevant planning scheme amendments.
- September 2025: Amendment VC282 introduces updated "deemed to comply" standards under Clause 54 (ResCode) for single dwellings on lots under 300sqm, potentially removing certain environmental assessment requirements where objective standards are met.
- 17 February 2026: Planning Amendment (Better Decisions Made Faster) Act 2026 receives Royal Assent. Three-tier permit system and associated EPA referral framework established in legislation.
- 25 November 2025: Default commencement date for a range of other planning permit and scheme amendment reforms under the earlier Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025.
- 29 October 2027: Default commencement date for the full suite of changes under the Better Decisions Made Faster Act 2026, allowing time for supporting changes to the Victoria Planning Provisions, Planning and Environment Regulations 2015, and Ministerial guidelines.
The period between now and October 2027 is therefore a transitional phase. Some provisions are already operative; others are being phased in. Developers with projects in the pipeline should seek current guidance on which specific provisions apply to their application type and lodgement date.
What Developers Should Do Now
The practical implication of these changes is that environmental assessment can no longer be treated as a late-stage task. Developers who approach EPA consultation as an afterthought — something to address once plans are drawn and lodgement is imminent — may find their applications rejected, delayed, or referred for extended assessment. The following action items may help developers position their projects for the faster approval pathways now available under the reformed system.
- Commission a PRSA early. If your site has any history of industrial, commercial, or agricultural use, a Preliminary Risk Screen Assessment under MD1 may be required before lodgement. The updated MD1 framework allows for more flexible audit scoping, which could reduce costs — but only if initiated before design is finalised.
- Determine your permit type before engaging consultants. Knowing whether your project is Type 1, 2, or 3 under the new framework determines your documentation requirements, timeframes, and EPA referral obligations. This classification should inform your consultant brief from the outset.
- Prepare an Engagement Report if a Development Licence is required. Community engagement must be completed before lodgement. Factor this into your project programme — it cannot be done in parallel with application preparation.
- Check Clause 53.21 if your site is near the Suburban Rail Loop. The Suburban Rail Loop Authority (SRLA) is now a planning authority with specific environmental and amenity requirements under Amendment VC297. Projects within the corridor may require additional assessment.
- Front-load all technical reports. Under the Type 1 and Type 2 pathways, there is no RFI buffer. Every required document — including EPA reports, traffic assessments, and shadow diagrams — must be ready at lodgement.
- Review climate change obligations for scheme amendments. If your project requires a planning scheme amendment, a Climate Change Consideration Report may now be required. Engage an environmental consultant to scope this requirement early.
SQM Architects has guided numerous projects through Melbourne’s eastern suburbs planning system, with experience across councils including City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council. That experience is built on early, thorough pre-application preparation — the same approach these reforms now make mandatory.
Frequently Asked Questions
Does every development project in Melbourne’s eastern suburbs now require EPA consultation?
No. EPA consultation requirements apply to specific project types — primarily those involving industrial or high-impact uses, contaminated land, Development Licences, or planning scheme amendments that may affect environmental, amenity, or human health outcomes. Standard residential developments on clean sites are unlikely to require direct EPA engagement, though contaminated land checks are advisable for any site with a prior non-residential use.
What is a Development Licence and does my project need one?
A Development Licence (DL) is issued by the EPA for the development of industrial and waste management activities that could impact the environment. Most residential and standard commercial developments do not require a DL. However, if your project involves scheduled premises under the Environment Protection Act 2017 — such as certain manufacturing, chemical storage, or waste processing activities — a DL may be required, and the new pre-application engagement rules will apply.
How does contaminated land affect my planning permit application under the new rules?
If your site is potentially contaminated, a Preliminary Risk Screen Assessment (PRSA) under Ministerial Direction No. 1 may be required before or at the time of lodgement. Under the Type 1 and Type 2 fast-track pathways, this report must be submitted with your application — there is no opportunity to provide it later in response to a request for further information. Commissioning a PRSA early in your project timeline is strongly advisable.
What is the Engagement Report required for Development Licence applications?
An Engagement Report documents the community consultation process that applicants are now required to complete before lodging a Development Licence application with the EPA. The report must demonstrate that potentially affected community members have been informed of and given an opportunity to respond to the proposed development. Applications submitted without a compliant Engagement Report are deemed incomplete and will not be assessed.
How do the new rules affect project timelines for medium-density developments?
Medium-density projects (townhouses and low-rise apartments up to 3 storeys) typically fall within the Type 2 pathway, with a 30-business-day statutory timeframe. However, this faster timeline is only achievable if all required documentation — including any EPA reports — is submitted at lodgement. Developers who have not completed environmental assessments before lodging may find their applications rejected at the initial completeness check, effectively resetting the clock. For guidance on planning appeals at VCAT if an application is refused, see our dedicated guide.
What is the Climate Change Consideration Report and when is it required?
Introduced by Ministerial Direction in September 2025, a Climate Change Consideration Report is required when a planning authority prepares a planning scheme amendment. The report must document how the proposal adapts to climate risks and minimises emissions. Developers pursuing rezonings or large-scale projects that require scheme amendments may need to engage an environmental consultant to prepare this document as part of the pre-application process.
When will the full three-tier permit system be operational?
The Planning Amendment (Better Decisions Made Faster) Act 2026 received Royal Assent on 17 February 2026, but the default commencement date for the full suite of changes is 29 October 2027. This transition period allows time for supporting changes to the Victoria Planning Provisions and Planning and Environment Regulations 2015. Some provisions from earlier reform legislation are already operative. Developers should seek current guidance on which rules apply to their specific application type and lodgement date.
What This Means for Your Next Project
Victoria’s planning reforms represent the most significant overhaul of the state’s planning legislation in decades. For property developers in Melbourne’s eastern suburbs, the practical effect is clear: environmental assessment and EPA consultation must be integrated into the earliest stages of project planning, not treated as a compliance checkbox near lodgement. The faster approval pathways now available under the reformed system are genuinely accessible — but only to developers who have done the groundwork upfront.
With extensive experience across Melbourne’s eastern suburbs, SQM Architects understands how to structure pre-application processes that position developments for the fastest available approval pathway. If you have a site under consideration or a project approaching lodgement, early assessment of your EPA obligations could save significant time and cost.
Get Your Free Site Assessment — contact SQM Architects on (03) 9005 6588 to discuss your project’s environmental planning requirements under the updated Victorian framework.
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 for a complimentary site assessment.
