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Victoria Launches Major Planning Overhaul to Boost Housing NOW

UPDATE: The Victorian government has just announced a transformative overhaul of its planning system, marking the most significant changes in 38 years. This urgent reform aims to expedite home construction and cut through bureaucratic red tape, signaling a major shift in how residential developments are approved across the state.

The new legislation, introduced to Parliament on October 28, 2023, promises to speed up planning approvals, with most applications expected to be processed within 10 days. Currently, the average planning application takes 140 days to approve, and objections can delay this to 300 days. Premier Jacinta Allan emphasized the need for a faster system, saying, “We want a planning system that makes better, faster decisions because we want more homes for young people.”

This overhaul effectively ends the notorious “NIMBY” (Not In My Backyard) powers that have previously allowed neighbors to obstruct projects, often leading to long delays. Under the new system, the majority of applications will no longer require neighbor notifications, significantly streamlining the process. However, high-density developments will still retain some notification requirements.

The reforms will categorize applications into three streams based on development scale. The first stream covers small projects like standalone homes, which will undergo a six-step approval process. The government assures these applications can be approved in 10 days. The second stream addresses lower-density developments, with a seven-step process and a maximum approval time of 30 days. Larger, complex projects fall into the third stream, which involves additional steps but guarantees a decision within 60 days.

The response from regional experts has been mixed. While many laud the reforms as a necessary step to address the housing crisis, concerns linger about potential transparency issues and the need for local governments to be adequately funded to handle the increased workload. Sonya Kilkenny, the Planning Minister, acknowledged these challenges, stating, “New homes shouldn’t be delayed by people who don’t live anywhere near a proposed project.”

Experts like Peter Burley from Buxton Real Estate in Ballarat believe these changes could significantly alleviate the regional housing crisis. Burley noted, “Developers will be able to get on with projects they’ve been sitting on for a long time,” highlighting the urgency for more housing availability in the region.

However, the potential for community backlash remains. James Hanley, general manager of Cavalier Homes in Bendigo, reported that the existing planning delays have driven up costs for average people trying to build homes, asserting, “Delays in the existing system were creating huge costs.”

Local councils are now grappling with the implications of these reforms. Ben Blain, mayor of Warrnambool City Council, expressed caution about reduced opportunities for public scrutiny over planning decisions, fearing that diminished transparency could erode community trust.

As the planning system undergoes this monumental shift, the Victorian government will need to ensure local councils are equipped to meet the new demands. Experts warn that without additional funding and resources, the anticipated efficiency gains could falter, leading to poor decision-making.

In light of these developments, all eyes will be on the Victorian government to see how these reforms unfold and whether they truly address the pressing housing shortages facing many families today. With the stakes high and public interest piqued, the urgency for successful implementation has never been more critical.

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