Insights
Reshaping Victorian residential development provisions
Posted April 07, 2025
The recent flurry of planning announcements in Victoria has involved a bewildering amount of detail. Within the space of a few days, the government released its new Plan for Victoria, new planning tools for use in and around activity centres, and revisions to the planning controls for residential development.
A great deal of attention has focused on Plan for Victoria and activity centre planning. However, the changes to residential development provisions may be the most far-reaching. These provisions have the potential to dramatically reshape built form, amenity, and tree canopy outcomes in many urban areas.
What was the problem?
Longtime observers of planning in Victoria will know that the ongoing review of residential development provisions has been central to the project of planning reform over the last 2 decades.
The introduction in 2001 of the “ResCode” provisions, which control medium-density housing, had quietened community unrest about unit development housing that had troubled state governments throughout the 1990s. However, the system’s promise of customised outcomes to reflect character in individual areas came at a cost in terms of certainty and processing times. Controls varied from place to place, which reduced their consistency, and outcomes would still be adjusted for individual site circumstances when planning applications were made. This reduced the certainty for both developers and the community.
Furthermore, a rolling process of residential zone reform started in the late 2000s. The new zones were introduced with the intention of providing more guidance on outcomes by clearly signalling areas for low, medium, and high levels of housing change. However, this clarity was never achieved, as shown in the table below from the state government’s practice note about applying the zones. In areas intended for incremental (medium) change, 5 different zones might be applied, and 5 of the 6 zones can signal 2 different levels of change.
Zone | Minimal | Incremental | Substantial |
Low Density Residential Zone | ✓ | ||
Mixed Use Zone | ✓ | ✓ | |
Township Zone | ✓ | ✓ | |
Residential Growth Zone | ✓ | ✓ | |
General Residental Zone | ✓ | ✓ | |
Neighbourhood Residential Zone | ✓ | ✓ |
ResCode’s highly localised approach, the flawed rollout of zone reforms, and broader issues with Victoria’s planning guidance have all contributed to uncertainty. As a result, residential development provisions have faced justified criticism for lacking clarity for both developers and the community.
Despite multiple cycles of planning reform, the Victorian planning process remains complex, increasing pressure for efficiency-focused reforms. The urgency of the housing crisis has made the shortcomings of this approach a key focus for reform.
What has changed?
In response, the Victorian government has updated the core provisions for medium-density housing, aiming to streamline the provisions.
The main assessment provisions are based on existing ResCode provisions but have been modified to be “deemed to comply.” This means that if a proposal meets the numerical standards of the code, councils must approve it, and residents lose the right to appeal.
While ResCode was previously based on the assumption that developments should respond to local circumstances, council decision-making and resident appeal rights will now be limited to those proposals – and those elements of proposals – that step beyond the statewide standards (for example, by reducing a standard setback from a boundary).
At the same time, many of those standards have been made considerably more permissive. Buildings can be up to 11m high, 3m from a boundary, and the standard site coverage (the amount of land covered by the footprint of a building) in a General Residential Zone has been increased.
The deemed to comply approach sidelines councils’ local policies and housing strategies, as these will only apply in situations where buildings exceed the deemed to comply standards. The ability to consider qualitative matters such as design quality and visual bulk will be removed for compliant development.
It also appears that many of the existing ResCode customisations, applied through council’s local zone schedules, will be removed.
What does this mean?
Given the lack of clarity in the existing framework, the virtues of a deemed to comply approach likely seem compelling to many. Yet the changes raise significant questions regarding the approach to planning residential development in Victoria.
Is the rollback of community involvement adequately justified?
Victorian planning controls have allowed residents to object and appeal planning processes for medium-density housing in most locations for over 30 years. It may be that some roll-back to those rights was warranted – although, as a believer in the merit of community involvement in the planning system, I would have preferred other opportunities for system efficiency to be properly explored first.
Although it is accepted that some curtailment of the previously existing community appeal rights is necessary, this must be well justified. If the message from planners to the community is, “we have decided that, subject to compliance with certain set rules, you have no right to be involved in this process”, it is important that planners can stand behind those rules.
That means the new rules should be carefully tested so that we can be confident they produce good outcomes. We should be able to show the community roughly what the buildings under the code are expected to look like. Indeed, one of the key virtues of a deemed to comply code should be the clarity for all regarding the outcomes it will produce.
That has not occurred for these changes. No details of the testing of the new code have been produced, and the government has not produced diagrams showing the forms that it expects will result from the use of deemed to comply envelopes on typical lots.
What will the outcomes be?
Given the lack of detail about testing or the resulting forms, considerable uncertainty remains about the forms that will be produced. The complexity of the code means that preparing diagrams to show the forms is not straightforward. The diagram below provides an illustration of what a compliant envelope may entail for a typical lot size in the General Residential Zone (this example assumes a north-south orientation).
Views may vary on the acceptability of a building this size, and certainly, there are many circumstances where such a form will be appropriate. This massing resembles many classic “six-pack” flats from the 1960s and 1970s, for example. While those buildings remain divisive, the better examples – such as those with good landscaping, for instance – are models of gentle density that we should emulate.
What a deemed to comply provision asks us to accept, however, is not just that this form may be appropriate for a particular site. Instead, it effectively asks us to accept that any residential development within this envelope is acceptable, even as we reduce or remove other design controls, such as provisions related to design detail and landscaping.
The inconsistent application of zones in Victoria means that we lack an appropriate starting point for the application of the deemed to comply controls. Site coverage provisions, for example, now become more permissive as we progress from the Neighbourhood Residential Zone to the General Residential Zone, to the Residential Growth Zone. But how do we know this is appropriate in a given area when there is so little consistency in how zones have been applied?
Another key concern relates to tree cover. The code includes a new standard regarding tree canopy cover, with a minimum of 10% tree coverage required for each site. However, this standard seems a low bar, and in the absence of any published testing of expected canopy outcomes, it is difficult to reconcile with the recommitment to urban greening and cooling objectives in Plan for Victoria.
Will the controls actually result in efficiencies?
A key justification for the changes is an expectation of efficiency in council planning processes. Appeal processes do indeed add considerable delay to planning timelines, and such appeals will be drastically curtailed under the proposed code.
However, expectations of dramatic system efficiencies at councils may be misplaced. The change to deemed to comply changes the nature of the Standards in the provisions from discretionary decision guidance to black-letter law process rules. This has fundamentally changed how the rules are used. While it is common for decision guidance to be somewhat complex, process rules need to be far simpler if they are to be workable.
The conversion of the ResCode Standards into process rules means councils must now be certain whether or not the standards are met at every stage of the application process. Previously, councils applied ResCode standards when making a decision, using flexible guidance to inform their judgment. As long as councils were satisfied with the merit of an application, they did not strictly need to rule if standards were met at all.
Now, every minor point of the standards is procedurally critical because it affects the legal status of resident appeal rights. The provisions, on the face of it, appear far too complex to function in this manner, with 28 pages of standards that include multiple nested criteria to be met. Some, such as those requiring precise measurement of tree canopies, seem inherently unworkable.
This risks bogging councils down with disputes over the small details of controls and complex legal challenges from applicants and aggrieved objectors. It is far from certain that this will be more efficient than the current provisions.
What happens to councils’ strategic planning now?
Councils’ pursuit of neighbourhood character outcomes through planning schemes is sometimes portrayed as a rogue policy agenda that has sabotaged state government’s pursuit of housing supply. Yet every neighbourhood character policy was signed off by a Planning Minister, and councils followed state government guidance that endorsed neighbourhood character studies as a critical input into preparing residential development provisions.
A rebalancing of policy priorities was likely required – although, as noted above, there was also room for a much better implementation of the previous set of tools.
What is clear is that years of policy development now require reworking. Many council schedules will now be removed with little, if any, examination of how this affects previous strategic work. Council policies will now be referenced much less frequently, and many will be nonsensical in the new regime. The application of zones in many councils – for example, where the General Residential Zone has been maintained in areas where little change is expected – should now be revisited. Many councils will need to start over on strategic work, which is either recently completed or underway.
The dust will need to settle before these outcomes can be fully understood. However, there is a considerable risk that these changes not only reset current strategic work but also expose the system to unnecessary further rounds of adjustment as they are refined and moderated. This could extend the delay and uncertainty that has characterised the last 2 decades.
Dramatic changes, uncertain outcomes
With uncertain outcomes, the proposed controls dramatically change the residential development provisions and the community's rights.
If the result of these changes was greater clarity about housing outcomes, the government could point to the kind of housing the provisions support to justify those changes to the community. However, it is problematic to dismiss community opposition to housing intensification as ill-informed when the information about what is proposed is so opaque.
A new model for residential development provisions, based on modern housing typologies and distilled into a form-based code, would be an excellent and helpful product in encouraging desirable medium-density infill. If designed carefully, such a code could provide much clearer guidance about acceptable outcomes. In principle, such an exercise could justify reduced community appeal rights and lead to increased supply and improved housing outcomes.
Supporting documentation:
The state government’s information about the changes can be found here.
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