Low density will get automatic approval

In a bid to boost housing supply as fast as possible, Victoria’s Allan government will introduce a “townhouse code” that will see “automatic” approvals for duplexes, townhouses and low-rise apartments.

Unveiling of the code comes the same week the Labor government threatened to strip council of their planning powers if they stall on meeting designated housing targets, while it also honed its planning regulations around transport and shops Activity Centres, as it embarks on a mission to deliver 2.24 million homes across the state by 2051.

“If a project ticks all the boxes in the townhouse code, it gets a green light and speeds past a complex planning system – with no costly delays, no VCAT limbo, and no unnecessary bureaucracy – delivering more homes, faster,” the government said.

To be fast-tracked, townhouses will need to abide by neighbourhood character rules like setbacks; tree canopy and open space requirements; have a mix of one-, two- and three-bedroom apartments in projects of a certain size, to support families; offer protection for neighbours from overlooking and overshadowing; feature sunlight, storage, room size, ventilation and private open space for residents; be sustainable and energy efficient.

Planning applications will have to include all the evidence it meets the code – formally called the Townhouse and Low-Rise Code – and councils will assess if they meet the code. If the code is met, the application is “deemed to comply” and no further assessment is required. Affected neighbours will be notified and can have their say – “but there are no third-party appeals at VCAT”.

“The status quo isn’t cutting it, and people trying to build homes for young people keep hearing the word ‘no’. The townhouse code is about a system that says yes,” Premier Jacinta Allan said.

“Homes don’t get built when they’re lost in the snakes and ladders of the planning system – so we’re fixing it.”

The government estimates the code can reduce planning permit assessment times by at least 60%, in addition to the time saved at VCAT. The average assessment time for a planning permit is 145 days, and the average time frame at VCAT from lodgement to hearing is 175 days.

A report from CoreLogic and Archistar late last year identified 1.3 million sites across the country that could deliver more than three million “missing middle” strata units and which could be delivered at a faster clip than higher-density housing. The report assessed the development potential of capital city land that doesn’t currently have a strata development and where local regulations allow for higher density dwellings – Melbourne was home to the largest number of sites, with more than 472,000 lots identified with the potential to deliver almost 1.2 million new strata units.

Vacancy rates in the rental market remain crushingly low amid a national housing crisis fuelled by a severe undersupply of homes. The federal government’s National Housing Accord is aiming to deliver 1.2 million “well-located” homes over five years in a bid to pump new dwellings into the market, while the Victorian government is aiming for 800,000 homes over 10 years.

However, issues in the construction industry such as labour shortages, high materials costs and capacity constraints have cast doubt on the reachability of housing targets.

The Victorian government said if the code is not met – for example, because of an issue that affects neighbours – then a normal planning process will then apply and third-party appeal rights will be maintained.

Should there be additional permit triggers locally such as heritage or flood overlays, or if there is a two-storey height limit in a zone, an application will have to comply with these rules as well as meeting the code. But the application won’t have to comply with rules that are already standardised by the code, such as setbacks, design and tree cover.

The government also it will “rewrite” 606-page Planning and Environment Act 1987 which it said has been “criticised as complex, inconsistent and old-fashioned.

“It is the definition of the status quo.

“The government will rewrite it so good homes aren’t blocked by bad process.”

As part of the rewrite, the government said it would look at the time and costs associated with structure plans and rezoning, with possible legislative change to replace the “current one-size-fits-all planning scheme amendment process”, and focus on further reducing planning permit delays and blockages, including different assessment and approval processes for projects that have a lesser impact.