2 November, 2025
victoria-s-planning-reforms-aim-to-end-nimby-objections

The Victorian government has announced a sweeping reform of the state’s planning system, aiming to streamline the process of building new homes. This overhaul, the largest in 38 years, is designed to accelerate planning approvals, reduce bureaucratic hurdles, and eliminate most objections to residential developments.

The changes, introduced to parliament on October 28, promise to transform Victoria’s planning laws and address the state’s housing crisis. Premier Jacinta Allan emphasized the importance of these reforms, stating that they would bring the planning system “into the 21st century” and significantly reduce approval times.

Currently, the average planning application takes 140 days to be approved, extending to 300 days if objections arise. Under the new system, most applications could be processed within just 10 days. This ambitious plan aims to make housing more accessible, particularly for young people.

Streamlined Approval Process

The new system categorizes applications into three streams based on the development size. Each stream has a tailored approval process to ensure efficiency and clarity.

Stream One: Small Developments

This stream covers standalone homes and small subdivisions. The approval process involves six steps, from preparation to decision, with a promise of approval within 10 days. This quick turnaround is expected to benefit smaller developers and individuals looking to build on residential blocks.

Stream Two: Medium-Sized Developments

More complex proposals, such as townhouses and lower-density developments, fall into this category. The approval process includes seven steps and may require notifying neighbors in certain circumstances. The government assures that this process will take no more than 30 days, after which developers can appeal to the Victorian Civil and Administrative Tribunal (VCAT) if necessary.

Stream Three: Large Developments

High-density projects are included in this stream, requiring additional steps such as council referrals and mandatory neighbor notifications. Despite these added layers, a decision is guaranteed within 60 days, with the option to appeal to VCAT if needed.

Ending ‘NIMBY’ Objections

A key aspect of the reform is the removal of neighbor notification requirements for most developments, except for large projects. This change effectively ends the “Not In My Backyard” (NIMBY) objections that have historically delayed projects.

Planning Minister Sonya Kilkenny highlighted the need for these changes, stating,

“Neighbours have a right to their say about a high-density development, but new homes shouldn’t be delayed by people who don’t live anywhere near a proposed project. It’s not common sense.”

Implications for Regional Victoria

Regional experts have largely welcomed the reforms, seeing them as a potential solution to the housing crisis. Peter Burley, director of Buxton Real Estate Ballarat, noted that the changes would “absolutely help address the regional housing crisis” by enabling developers to proceed with long-delayed projects.

James Hanley, general manager of Cavalier Homes in Bendigo, pointed out that the current system’s delays have imposed significant costs on average homebuilders. The new reforms promise to alleviate these burdens by cutting through red tape.

However, there are concerns about the potential loss of transparency. Warrnambool City Council Mayor Ben Blain expressed reservations about the limited opportunities for public objections, warning that a lack of transparency could erode trust in the planning process.

Challenges and Future Considerations

While the reforms promise efficiency, they also pose challenges, particularly in terms of resourcing. Experts stress the need for adequate staffing and funding at the local government level to meet the new system’s demands. James Laycock, an Albury-Wodonga planning expert, emphasized the importance of proper resourcing to ensure the reforms’ success.

As the Victorian government moves forward with these changes, the focus will be on balancing efficiency with community engagement and transparency. The reforms represent a significant shift in the state’s approach to urban development, with the potential to reshape the housing landscape in Victoria.