The State Government has introduced new zone and overlay tools through Planning Scheme Amendment VC257, 25 February 2025, affecting all planning schemes in Victoria. The Amendment introduces the Housing Choice and Transport Zone (HCTZ) at Clause 32.10 and the Built Form Overlay (BFO) at Clause 43.06. The purpose of the new provisions is to support housing growth in and around activity centres and other well-serviced locations in line with Victoria’s Housing Statement, The Decade Ahead 2024-2034.
The State Government has announced that 10 existing activity centres will be used as pilots for the new provisions, being Broadmeadows, Camberwell Junction, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston (High Street), and Ringwood.
Amendment VC257 does not apply the new zone and overlay to any land at this time. It is expected that the rezoning will take place in early 2025 to bring land in and around the activity centres into the new HCTZ.
The Purpose of the HCTZ zone will be:
To implement the Municipal Planning Strategy and the Planning Policy Framework.
To provide housing at increased densities around activity centres and well-serviced locations, close to employment, services and public transport.
To encourage a scale of development that provides a transition between more intense development to lower-scale residential areas.
To encourage a diversity of housing types and affordable housing.
To allow educational, recreational, religious, community and a limited range of other non-residential uses to serve local community needs in appropriate locations.
The zone will specify mandatory maximum building heights for dwellings, small second dwellings and residential buildings. There will be a number of exemptions to the height limits including if an overlay applying to the land includes a higher maximum building height limit.
The in the zone are set out below:
HCTZ1 will act as the “core” of the activity centre allowing buildings up to 13.5 metres/four storeys or 21.5 metres/6 storeys depending on the size of the site and HCTZ2 will act as the “walkable catchment” of the activity centre with lower maximum building height limits.
A “large site” is defined as a lot, or two or more contiguous lots combined, greater than 1000 square metres in area and with a frontage of at least 20 metres.
Of note, the new zone provisions do not require a mandatory minimum “Garden Area” requirement which is part of the Neighbourhood Residential Zone and the General Residential Zone.
The new zone has transitional provisions so that existing applications are not disadvantaged by the new provisions. The provisions of Clauses 54, 55, 56 and 58 (ResCode) will apply to applications in the HCTZ.
The new BFO and associated local schedules will set out specific design and built form requirements to facilitate the preferred scale of development in identified activity centres and preferred precincts. The purpose of the BFO as outlined in the new provisions is:
To implement the Municipal Planning Strategy and the Planning Policy Framework.
To facilitate higher density development that provides for high amenity living and working environments close to infrastructure and public transport.
To ensure development contributes positively to the functionality and amenity of the area.
To deliver public realm improvements, and where appropriate, additional public benefits in conjunction with new development.
To encourage land consolidation to facilitate higher density development. To encourage a diversity of housing types and affordable housing.
To identify areas where specific design and built form requirements apply.
The BFO includes state-standard design and built form outcomes including mandatory and discretionary standards. If strategically justified, the BFO enables a schedule to specify a public benefit uplift framework where a limit or standard can only be exceeded if a public benefit is provided and secured by a section 173 agreement. Public benefits may include:
- Affordable housing
- Public realm works
- Public open space
- Strategic land uses
- Other works, services or facilities that benefit the community within the area of the overlay
Each schedule of the BFO requires a Development Framework including requirements such as the planned urban structure, future character, public open space, significant landmarks, heritage places etc. A Schedule to the BFO may require a “Masterplan” and prevent the issue of planning permits for subdivision or buildings and works until the Masterplan has been prepared. A schedule to the overlay may set out standards and outcomes and include “deemed to comply” provisions whereby some or all outcomes will be met where the corresponding standards are met. Under the BFO applications are exempt from all notice (advertising) and review (appeal) provisions in the planning scheme. However, a local schedule to the overlay may “switch on” notice and review provisions if specified in that schedule.
This amendment has been introduced with the purpose of supporting the delivery of new housing in and around an initial 10 activity centres across Melbourne, and to streamline assessments for such applications. In the BFO, where applications are able to meet pre-determined outcomes for matters such as building heights, setbacks, overshadowing and wind impacts those applications will have a streamlined assessment process.
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