The Victorian State Government has announced changes to all planning schemes that provide new fast track approval pathways for dual-occupancy developments and two lot subdivisions. The new provisions, as part of planning scheme amendment VC288, come into effect on 16th of October 2025.
Full details of the changes can be downloaded here.
The following provides practitioners with a summary of the changes most likely to be relevant to your dual-occ applications.
The changes will allow most 2 lot subdivisions and dual-occupancy developments to be assessed under the VicSmart pathway. Regular applicants will be aware that the VicSmart pathway provides for a ten-day statutory decision making time frame, removes requirements for public notification, removes third party appeal rights and significantly reduces the ambit of Council’s discretion when assessing applications.
Land Affected by the Changes
The changes affect the land within the following 6 residential zones across Victoria:
- General Residential Zone
- Neighbourhood Residential Zone
- Residential Growth Zone
- Housing Choice and Transport Zone
- Mixed Use Zone
- Township Zone
Application Criteria for Faster (VicSmart) Approvals
The following provides a summary of what will be required to qualify for the VicSmart pathway for any application associated with the construction/alteration of two dwellings on a lot and an application to subdivide land into two lots, in one of the above zones.
Construction of Two Dwellings on a Lot
An application associated with development of two dwellings on a lot will generally qualify as a VicSmart application if all of the following are met:
- All permit triggers associated with the application fall within the VicSmart pathway
- Nothing authorised by the grant of a permit would result in a breach of a restrictive covenant
- Any relevant ‘Referral Authority’ has granted its blessing in the 3 months prior to the application being made
- The following 13 Standards of Clause 55 are met:
- Clause 55.02-1 Street setback
- Clause 55.02-2 Building height
- Clause 55.02-3 Side and rear setbacks
- Clause 55.02-4 Walls on boundaries
- Clause 55.02-5 Site coverage
- Clause 55.02-6 Access
- Clause 55.02-7 Tree canopy
- Clause 55.02-8 Front fences
- Clause 55.04-1 Daylight to existing windows
- Clause 55.04-2 Existing north-facing windows
- Clause 55.04-3 Overshadowing secluded open space
- Clause 55.04-4 Overlooking
- Clause 55.05-2 Overshadowing domestic solar
Subdivision
An application associated with the subdivision of land into two lots will generally qualify as a VicSmart application, in the above zones, under Amendment VC288, when all of the following are met:
- A permit has been granted for the construction of two dwellings on the lot; or such a permit is issued concurrently with the subdivision approval; or each lot contains one existing dwelling; or the application creates vacant lots for residential development
- If the land is 0.4 hectares or more, the land must not contain native vegetation
- The land is not located in an Environmental Audit Overlay, Neighbourhood Character Overlay or an area that is a designated bushfire prone area as determined under section 192A of the Building Act 1993
- All permit triggers associated with the application fall within the VicSmart pathway and other Clause 71.06 criteria are met
- Nothing authorised by the grant of a permit would result in a breach of a restrictive covenant
- Any relevant ‘Referral Authority’ has granted its blessing in the 3 months prior to the application being made
It is also noteworthy that the following overlays now include (or have expanded) VicSmart pathways for two lot subdivisions. This means an application under one of the above residential zones, when a permit is also triggered under the following overlays, may still qualify as a VicSmart application, for subdivision into two lots:
- Clause 42.01 Environmental Significance Overlay
- Clause 43.01 Heritage Overlay
- Clause 43.02 Design and Development Overlay
- Clause 43.06 Built Form Overlay
- Clause 44.05 Special Building Overlay
How Applications will be Assessed by Council
The following provides a summary of what is generally relevant to Council’s assessment of your applications, under the new VicSmart pathway contained within the above residential zones, for dual-occupancy developments and two lot subdivisions:
Construction of Two Dwellings on a Lot
When assessing an application associated with the construction or alteration of two dwellings on a lot, under the VicSmart pathway contained in the zone, the responsible authority must only consider:
- Mandatory height controls and Garden Area requirements, where contained in the zone (see Cl71.06-2)
- All Standards of the new codified Clause 55 and associated Objectives, where relevant (see Cl71.06-2)
- The public open space requirements in clause 53.01 or clause 43.06-8 or a schedule to those clauses.
Subdivision
When assessing an application associated with the subdivision of land into two lots, under the VicSmart pathway contained in the above residential zones, there are separate tests for applications that create vacant lots and applications that subdivided lots containing existing dwellings.
For subdivision applications that create at least one vacant lot, the Responsible Authority must only consider:
- The objectives and standards in the following clauses:
- Clause 56.04-2 Lot area and building envelopes objective
- Clause 56.04-5 Common area objective
- Clause 56.06-8 Lot access objective
- Clause 56.07-4 Stormwater management objective
- The public open space requirements in clause 53.01or clause 43.06-8 or any schedule to those clauses
- The area and dimensions of each lot in the subdivision
- The suitability of the land for subdivision
- The provision of private open space, car parking and access for a lot containing an existing dwelling proposed to be retained
- The location, dimensions and gradient of proposed vehicle access
- The effect of development on the use or development of other land which has a common means of drainage
- The provision of off-street parking
- The provision and location of common property
- The effect on the environment, human health and amenity of the area
- The degree of flood or erosion associated with the location of the land and the use, development or management of the land so as to minimise any such hazard
In addition, we note that the number of Clause 56 tests relevant to any application to subdivide land into two lots (which creates a vacant lot) has been reduced by Amendment VC288, be it a VicSmart application or not (see Table at 32.08-3, for example).
For subdivision applications which create one lot per dwelling, for existing or approved dwellings (and do not create a vacant lot), the decision guidelines and assessment criteria of Clause 59.02 (Subdivision for Buildings & Car Parking Spaces) remain unchanged and will continue to apply.
Closing
As with all planning scheme changes – there is some devil in the detail. However, the new VicSmart pathway for dual-occupancies and two lot subdivisions has the ability to significantly reduce the time and cost associated with these types of planning approvals. Practitioners should look to utilise this new pathway whenever possible, noting that the new provisions come into effect on 16th October 2025.
Importantly, for the VicSmart provisions to apply permit applications must be lodged under the VicSmart pathway. Practitioners should be aware that it is up to the permit applicant to lodge their application(s) under the VicSmart pathway. If the application is not lodged under the VicSmart pathway, public notification, objector appeal rights, longer processing times and a wider ambit to Council’s decision (including wider neighbourhood character considerations) will remain relevant to your applications.
If you require additional information regarding your current or future projects please don’t hesitate to contact our office.
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