If you’re planning a home renovation, extension, or small-scale residential development in Melbourne’s Eastern Suburbs, the regulatory landscape has shifted significantly. Between mid-2025 and early 2026, the Victorian Government introduced a series of reforms that affect everything from planning permit pathways to building oversight and consumer protections. Understanding these changes before you commit to a design or budget could save you months of delays and considerable cost.
This guide is intended for property developers and landowners operating across the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council. Whether you’re undertaking a substantial renovation, adding a second dwelling, or preparing a site for subdivision, the information below outlines the current regulatory context and the key considerations that may affect your project timeline and approval pathway.
SQM Architects has delivered projects across Melbourne’s Eastern Suburbs for over 15 years, with extensive experience across planning permit applications in the region. The following guidance reflects our working knowledge of how these reforms are being applied on the ground in 2025–26.
The New Regulatory Landscape: What Changed in 2025–26
Victoria’s planning and building systems have undergone their most significant overhaul in decades. Three pieces of legislation are particularly relevant to residential developers and renovators:
- Building Legislation Amendment (Buyer Protections) Act 2025 — received Royal Assent on 3 June 2025, establishing the Building and Plumbing Commission (BPC) as the new integrated building regulator from 1 July 2025.
- Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 — received Royal Assent on 18 March 2025, streamlining planning permit and planning scheme amendment processes.
- Planning Amendment (Better Decisions Made Faster) Act 2026 — received Royal Assent on 17 February 2026, establishing three planning permit assessment streams proportionate to risk and complexity, with a default commencement date of 29 October 2027.
Together, these reforms signal a clear policy direction: reward well-prepared, compliant applications with faster approvals, and increase accountability across the building industry. For developers in the Eastern Suburbs, this creates both opportunity and obligation — the opportunity to move through the system faster, and the obligation to ensure documentation and design compliance are right from the outset.
The Building and Plumbing Commission (BPC): Replacing the VBA
From 1 July 2025, the Victorian Building Authority (VBA) was replaced by the Building and Plumbing Commission (BPC). The BPC consolidates the functions of the former VBA, the Domestic Building Dispute Resolution Victoria (DBDRV), and the domestic building insurance arm of the Victorian Managed Insurance Authority (VMIA) into a single integrated regulator.
For developers undertaking renovation or construction work, this transition has practical implications. The BPC now has expanded powers, including the ability to issue rectification orders directing builders and developers to fix defective work — including after occupancy. This is a meaningful change for anyone commissioning residential building work, as the regulator’s reach now extends well beyond the construction phase.
Additional consumer protections being introduced under the BPC framework include:
- A new first-resort statutory warranty scheme for buildings up to three storeys, improving access to insurance if things go wrong
- A developer bond for apartment buildings above three storeys — the first step towards a 10-year insurance product for apartment buildings
- Expanded building industry registration, with new categories including building consultants and site supervisors
- A requirement for building surveyors to provide an information statement to the building owner within 10 working days of issuing a building permit
Draft regulations covering building manuals and mandatory inspections were released for public consultation in December 2025, with the consultation period closing 1 February 2026. Developers undertaking Class 1b, Class 2, or Class 3 buildings should be aware that building manual requirements may apply to their projects.
Building Manuals: A New Documentation Requirement
One of the more significant operational changes introduced under the 2025 building reforms is the requirement for a building manual to be created and maintained for certain new buildings. For building permits issued on or after 30 June 2025, this requirement applies to Class 1b, Class 2, and Class 3 buildings, as well as any building that includes a Class 2 or Class 3 component.
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The building manual functions as a centralised repository of all relevant construction and maintenance documentation. It may include:
- A copy of the building permit application and accompanying documents
- Mandatory inspection records
- Occupancy permit documentation
- Details of any subsequent building or plumbing work carried out on common property
- Electrical work records in accordance with the Electricity Safety Act 1998
The owner or owners’ corporation is responsible for maintaining the manual and updating it annually. For developers of multi-dwelling projects in the Eastern Suburbs, this adds a documentation obligation that should be factored into project management planning from the design stage. The intent is to improve safety and assist owners in identifying defects early — a worthwhile outcome, but one that requires proactive record-keeping throughout the project lifecycle.
Faster Planning Permit Pathways for Residential Development
The 2025–26 reforms introduced several streamlined planning permit pathways that may be relevant to renovation and small-scale residential development projects in the Eastern Suburbs. Understanding which pathway applies to your project can significantly affect your approval timeline.
VicSmart: 10-Business-Day Approvals
VicSmart is a streamlined planning permit process designed for lower-impact applications. Eligible projects may receive a decision within 10 business days, with no third-party notice or review. From 16 October 2025, Amendment VC288 extended the VicSmart pathway to two-lot subdivisions in eligible zones, providing greater certainty and reduced delays for compliant subdivision proposals.
For single dwellings and small second dwellings on lots under 300 square metres, Amendment VC282 (effective 8 September 2025) introduced a streamlined VicSmart permit process under the updated Clause 54. This pathway offers a 10-business-day turnaround and exemption from discretionary assessment under Section 60 of the Planning and Environment Act 1987, provided the design meets the updated standards.
Deemed to Comply: Townhouse and Low-Rise Code
The Townhouse and Low-Rise Code (introduced via Amendment VC267) applies to developments up to three storeys. If a design meets the "deemed to comply" standards — covering setbacks, tree canopy, solar access, overlooking, and amenity — the Responsible Authority can approve the application faster, assessing only those aspects that do not comply with the codified standards.
Key standards under the updated Clause 54 include:
- Street setback: Reduced to 6m or the lesser of the two adjoining dwellings
- Site coverage: Varies by zone — 60% (NRZ/TZ), 65% (GRZ), 70% (RGZ/MUZ/HCTZ)
- Tree canopy: 1 tree per 100m² of site area, scaling to 3 trees for lots between 200–300m²
- Private open space: Reduced to 20% of lot area, with a minimum of 25m² (3m minimum dimension); balconies and rooftop terraces are now acceptable alternatives
- New ESD standards: Protection of rooftop solar from overshadowing, rooftop solar-ready areas, and shading for north-facing windows
Small Second Homes (Granny Flats)
A planning permit may no longer be required for a small second home up to 60m² where no heritage, design and development, or neighbourhood character overlay applies. Building permits and compliance with height and overlay requirements still apply. This change may create development opportunities on existing residential lots across the Eastern Suburbs, particularly in General Residential Zones.
Extended Planning Permit Expiry Times
Under the Housing Statement Reform Act 2025, the default planning permit expiry times for the use and development of land have been extended. The time to commence a use or development has increased from two years to three years, and the time to complete a development has increased to five years. This provides developers with greater flexibility in managing project timelines.
Planning Permit Considerations for Eastern Suburbs Renovations
Whether a planning permit is required for a renovation or extension depends on the specific property, its zoning, and any applicable overlays. In Melbourne’s Eastern Suburbs, common overlay triggers include Design and Development Overlays (DDO), Neighbourhood Character Overlays (NCO), Significant Landscape Overlays (SLO), and Heritage Overlays — all of which remain in force regardless of the new streamlined pathways.
Each council in the Eastern Suburbs applies its planning scheme with particular emphasis on local character. The City of Boroondara, for example, has extensive heritage overlay coverage across suburbs such as Camberwell, Hawthorn, and Kew, which may require a planning permit even for works that would otherwise be exempt. The City of Whitehorse and Manningham City Council both have significant tree protection provisions that can affect site coverage and setback decisions.
Before committing to a design direction, it is worth confirming:
- The zoning and any applicable overlays on the subject land
- Whether the proposed works trigger a planning permit requirement
- Which assessment pathway — VicSmart, deemed to comply, or standard — may apply
- Whether any covenant or Section 173 agreement affects the land
Owner-Builder Considerations
For developers or landowners considering undertaking works themselves as owner-builders, the BPC now administers the certificate of consent process previously managed by the VBA. Processing times for owner-builder applications are approximately 45 business days where all required documentation is provided at the time of submission.
Acceptable owner-builder projects for single domestic dwellings include alterations, renovations and additions, swimming pools, retaining walls, pergolas, al fresco structures, sheds, and garages. Owner-builders cannot perform demolition work or subfloor work. A certificate of consent is valid for 12 months from the date of issue, or until the building permit lapses if one is obtained within that period.
It is worth noting that registered architects with the Architects Registration Board of Victoria (ARBV) do not require a certificate of consent to apply for a building permit as an owner-builder — a relevant consideration for architect-developers operating in the Eastern Suburbs.
Asbestos and Pre-1990 Properties
A significant proportion of residential properties across Melbourne’s Eastern Suburbs were constructed before 1990 and may contain asbestos-containing materials. Any renovation or demolition work on these properties must comply with Victorian regulations governing the removal and disposal of asbestos. Licensed asbestos removalists are required for works involving more than 10m² of non-friable asbestos, and all friable asbestos removal must be carried out by a licensed contractor regardless of quantity.
Developers should factor asbestos assessment and removal costs into feasibility modelling for any pre-1990 property. Failure to manage asbestos correctly can result in significant delays, regulatory penalties, and liability exposure. Further information is available at asbestos.vic.gov.au.
Frequently Asked Questions
Do I need a planning permit to renovate my home in Melbourne’s Eastern Suburbs?
Whether a planning permit is required depends on the property’s zoning, applicable overlays, and the nature of the proposed works. Many internal renovations and minor external alterations may not require a planning permit, but properties in heritage overlays, design and development overlays, or neighbourhood character overlays may have additional requirements. A pre-application enquiry with the Responsible Authority or a site assessment with an experienced architect can clarify this early.
What is the BPC and how does it affect my renovation project?
The Building and Plumbing Commission (BPC) replaced the Victorian Building Authority (VBA) on 1 July 2025. It is now the primary regulator for building and plumbing work in Victoria. For renovation projects, this means the BPC oversees building permits, practitioner registration, and — under new powers — can issue rectification orders for defective work even after occupancy. Engaging registered practitioners and maintaining thorough documentation is more important than ever.
What is a building manual and does my project need one?
A building manual is a new documentation requirement for certain building classes, introduced under the 2025 building reforms. For building permits issued on or after 30 June 2025, Class 1b, Class 2, and Class 3 buildings — and any building that includes these classes — may require a building manual. The manual must be created, maintained, and updated annually by the owner or owners’ corporation. If your project falls into these categories, this requirement should be incorporated into your project management planning from the outset.
Can I build a granny flat without a planning permit in the Eastern Suburbs?
A planning permit may not be required for a small second home up to 60m² where no heritage, design and development, or neighbourhood character overlay applies to the property. However, building permits are still required, and the structure must comply with height and any applicable overlay requirements. Given the prevalence of overlays across the Eastern Suburbs, it is advisable to confirm the overlay status of your specific property before proceeding.
How long does a planning permit last under the new rules?
Under the Housing Statement Reform Act 2025, the default planning permit expiry time to commence a use or development has been extended from two years to three years. The time to complete a development has been extended to five years. These extended timeframes provide greater flexibility for developers managing project timelines, though it remains important to monitor permit conditions and commence works within the required period.
What is the VicSmart pathway and is my renovation eligible?
VicSmart is a streamlined planning permit process that may deliver a decision within 10 business days for eligible, lower-impact applications. From September 2025, single dwellings and small second dwellings on lots under 300m² that meet the updated Clause 54 standards may be eligible for VicSmart assessment. Eligibility depends on zoning, overlays, and compliance with the relevant standards — a planning or architectural assessment can determine whether your project qualifies.
How do the 2025–26 reforms affect renovation timelines in practice?
For well-prepared, compliant applications, the reforms may reduce planning permit assessment times significantly — potentially from several months down to 10 business days for eligible VicSmart applications. However, projects that do not meet the deemed-to-comply standards, or that are subject to overlays requiring discretionary assessment, will still follow standard permit pathways. The key variable is the quality and completeness of the application documentation from the outset.
Conclusion
Victoria’s 2025–26 planning and building reforms represent a genuine shift in how residential development and renovation projects are assessed and regulated. For property developers in Melbourne’s Eastern Suburbs, the reforms create meaningful opportunities to move through the planning system faster — provided designs are compliant, documentation is thorough, and the correct assessment pathway is identified early. At the same time, the establishment of the BPC and the introduction of building manuals, expanded registration requirements, and new consumer protections signal a higher standard of accountability across the industry.
SQM Architects has supported developers across the City of Whitehorse, City of Boroondara, Manningham City Council, City of Monash, Knox City Council, and Maroondah City Council for over 15 years, with extensive experience supporting developers through planning permit and building approval processes across residential renovation and development projects. If you’re planning a renovation, extension, or small-scale residential development and would like to understand how the current regulatory environment applies to your site, we invite you to get in touch.
Get Your Free Site Assessment — or call us on (03) 9005 6588 to discuss your project with the SQM Architects team.
This article provides general information about Victorian planning and building regulations as at 2025-26. It does not constitute professional advice. For guidance specific to your project, contact SQM Architects for a complimentary site assessment.
