Regular planning permit applicants will be familiar with the extent of change that has taken place within the Victorian planning regime over the past 18 months… but there’s a lot more to come.
The recently passed Better Decisions Made Faster Act makes changes to the Planning and Environment Act 1987 (PE Act) and has been described by the Department as “the most significant update to Victoria’s planning legislation and systems in decades”.
Practitioners should be aware that the changes will be rolled out progressively over the next 15 months.
Changes already implemented
The following changes came into effect in June 2026, although they have relatively little day-to-day impact on the average planning permit application:
- Changes to Distinctive Areas and Landscapes (DALs)
- Updates to planning compensation provisions
- New requirements for giving notice of planning scheme amendments
- Administrative changes to Infrastructure Contributions Plans (ICPs)
- Administrative changes to Growth Area Infrastructure Contributions (GAICs)
In August 2026, A second tranche of changes come into effect, providing significantly stronger compliance and enforcement powers, including:
- Increased financial penalties
- New civil penalties
- Expanded enforcement powers and
- Additional court-based enforcement mechanisms.
Changes yet to be implemented
Most of the reforms that impact planning permit applicants and practitioners have not yet commenced and are expected to be implemented progressively between now and the 29th of October 2027. These changes include:
- A new three-stream planning permit assessment system: Planning permit applications will be categorised into three assessment pathways based on the complexity, scale and planning impact of the proposal. The intention is that straightforward applications will follow a simpler and faster assessment process, while more complex applications will continue to receive a more comprehensive assessment.
- Revised notice and objection procedures: The Act introduces changes to the way planning permit applications are advertised and how notice is provided to affected landowners and occupiers. These reforms are intended to streamline notification requirements while ensuring those genuinely affected continue to have an opportunity to participate in the planning process.
- Changes to third-party review rights: The reforms will generally limit VCAT review rights to persons who were entitled to receive notice of an application, rather than the broader class of persons who may currently lodge an objection. This represents one of the most significant procedural changes introduced by the Act.
- New statutory assessment pathways and processing timeframes: The Act establishes new permit assessment pathways, each with prescribed procedures and target assessment timeframes. The detailed operation of these pathways will be established through supporting regulations and amendments to the planning schemes.
- A new process for assessing application completeness: Responsible Authorities will be required to undertake an initial assessment of whether an application contains the prescribed information before it progresses through the statutory planning process. This is intended to reduce delays caused by incomplete applications. Some Councils are already implementing this system.
- Revised provisions dealing with incomplete applications: Where an applicant does not provide essential information requested during the initial assessment process, the application may be deemed incomplete and, in certain circumstances, may lapse or become void rather than remaining on foot indefinitely.
- New material detriment guidelines: The Act introduces a requirement for Ministerial guidelines to assist Responsible Authorities in determining whether a person is materially affected by a proposal for the purposes of notice and review rights. These guidelines are intended to promote greater consistency across Victoria and reduce frivolous objections and appeals.
- Revised planning permit expiry periods: Subject to the commencement of the relevant provisions, permits will generally provide three years to commence development and five years to complete development unless otherwise specified.
- Greater flexibility for restrictive covenant applications: The Act introduces a new legislative framework intended to simplify and broaden the circumstances in which restrictive covenants may be varied or removed through the planning system. The detailed operation of these provisions will depend upon supporting regulations and consequential amendments before they take effect.
- Associated amendments to VCAT procedures: The Act also includes consequential changes to Tribunal procedures, review processes and the administration of planning appeals to align with the new planning permit framework.
Although the Planning Amendment (Better Decisions Made Faster) Act 2026 has received Royal Assent, many of its most significant reforms have not yet commenced. Accordingly, until the relevant provisions are proclaimed, planning permit applications will continue to be assessed under the existing provisions of the Planning and Environment Act.
What this means for practitioners
Practitioners should be aware that the processes and application requirements associated with the above matters are likely to change over the next 15 months, as the amended Planning and Environment Act is rolled out. Clause 1 Planning will provide more information into each of the above changes over the coming months, as more details become available.
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