The recent changes to Victoria's planning rules mark the most significant shift in a generation in planning. While changes were needed, the new Townhouse & Low-Rise Code – which took effect on 2 April 2025 – delivers major changes to planning rules and communities that have been conditioned to expect objection and appeal rights, and consultative processes sympathetic to character design and protection.
The new code follows the State Government's updates to Clause 55, previously known as ResCode. The new code applies to developments of two or more dwellings on a lot, and residential buildings between one and three storeys high. Based on existing data, we estimate it will be used to assess half of Victoria's new dwellings. For myLot's Victorian council partners, it will apply to most planning applications for additional dwellings on a lot.
Without significant education, tools and support, council planners are likely to face the brunt of community concern and dissatisfaction resulting from these changes. However, they also provide opportunities for planners and we believe the industry can meet this challenge with careful consideration of what's changing, what that's likely to mean and how to adapt and create better planning outcomes, for everyone. Let's take a closer look.
Townhouse & Low-Rise Code reforms
Deemed to comply assessments
Amendment VC267 fully codified Clause 55 brings Victoria’s townhouse and low-rise codes in-line with most other States. Neighbourhood character – formerly a significant but qualitative design standard – has been transitioned to a series of measurable design codes. For many planners in Victoria, this is a big change.
For assessment of new residential planning applications, when a standard of the Townhouse & Low-Rise Code is met, an objective is automatically met. The assessing Council is not required to consider the relevant decision guidelines and there are no third-party appeal rights relating to this objective (more on this below).
Meanwhile, when a standard is not met, an applicant may seek an alternate design to achieve the objective. An assessing Council must use the decision guidelines and relevant State and Local policies to determine whether the alternate design achieves the objective.
Importantly and in an abrupt departure to previous, if an application meets a standard requirement, it cannot be refused on that requirement. Practically, an application with fully compliant design standards must be approved.
For myLot’s Council partners where neighbourhood character has previously been an important, and contentious, aspect of planning applications, this change will have an impact on how applications are processed.
Giving notice and objections
An assessing Council has discretion on whether to give notice of an application. When a fully compliant application is submitted under the Townhouse & Low-Rise Code, it must be approved and there are no third-party objector appeal rights. Although objections could technically be submitted, an assessing Council would need to decide how much or little weight to give them.
As such, an assessing Council has the option to not give notice of a fully compliant application. Fully compliant knockdown / rebuilds only requiring building permits have not needed notice for several decades; the planning system now has the option to align with this.
That said, for the Victorian community and many Councils, this is a big change. It will take time for processes and expectations to adjust.
In speaking with our network, updates are being made to notice templates across the sector. By making clear that a neighbour has limited avenues of objection and appeal, it may stem difficult conversations. For the time being, we understand that assessing Councils will still give notice of a compliant application.
Reduction of restrictive standards and removal of restrictive schedules
The Victorian community has become accustomed to restrictive standards requiring high screening on windows, limited overshadowing to adjacent properties and generous street or side boundary setbacks. Separately, many Councils have crafted residential zone schedules that reflect intended built form outcomes. These schedules are generally informed by long-term strategic work and engagement with local communities.
The Townhouse & Low-Rise Code introduces more consistent and permissive design outcomes across Victoria. For example, requirements to screen bedroom windows are gone: this improves internal amenity to bedrooms but might frustrate neighbours who are used to overlooking protection. In another example, some Councils enjoyed a spacious 9 metre street setback requirement making the new 6 metre street setback requirement a big change.
Meanwhile, some residential zone schedules had variations relating to building site coverage, landscaping or setbacks from side / rear boundaries. Following gazetting of Amendment VC276, residential zone schedules that are more restrictive to built form than the new code have been removed.
For Councils who have invested heavily in housing strategies or neighbourhood character studies, this was jarring news and will change the character of neighbourhoods across the State.
Possible implications
Although it will take time for new code assessments to play out, based on our experience there may be some early implications for assessing Councils and their staff.
The changing role of assessing planners
Some in our network have expressed concern at the reduced role of an assessing planner for residential applications. In our view, the role of an assessing planner becomes more important than ever, although the function may evolve.
Fulsome assessments of applications within the first 28-days become essential. Due to the design of Victorian planning legislation, many assessing officers wait until deep in an application to complete a thorough assessment. This will need to change; it is now integral to surface non-compliant standards early on. Permit applicants now have a tangible incentive to comply with standards, too.
Where some Council planning teams have sought to drive high quality neighbourhood character outcomes, this frame will need to shift. Assessing officers will need to review applications thoroughly against the design standards and negotiate with applicants; some built form outcomes may now be acceptable where previously discussions about neighbourhood character responses were important.
Front-line planners as the bearers of bad news for the community
Assessing planners will become the primary vehicle for explaining the new rules to residents. There will be a tricky period of transition for planning offices around Victoria, as staff work to educate residents on the new requirements. Community expectations can be difficult to shift, and it will take communication skills and patience from planners to explain this change.
We encourage the leadership of planning teams across Victoria to embrace these changes and surface new ways of working. Greater flexibility around the giving of notice, guidance for assessing planners to fully assess an application early in the process and briefing Councillors of the changes are ways in which Team Leaders, Coordinators and Managers can support this change.
What role can AI play in supporting change?
As council planning teams grapple with the state's sweeping planning changes, and with planning delays and housing challenges already underlying, technology is an essential part of the solution. Fortunately, AI is now at a point where – with council co-development – it can now genuinely support planners by alleviating the burden of repetitive low-value enquiries and surfacing the information needed to focus on detailed assessments, sooner.
This is what myLot has been designed to do. After co-developing our AI planning enquiry service with Yarra Ranges Council, myLot is supporting planning teams there and at Mornington Peninsula Shire Council, with Bayside City Council, Boroondara City Council and Moonee Valley City Council set to launch soon following implementation periods of only a few months.
With myLot, planners at these councils can front-load their assessments and complete through-code reviews early in an application process enabling quality planning outcomes within the new state rules. And this is only the beginning. Our team of technology and planning experts is continuing to work with our council partners to add tools and features that make it easier for planners to provide high-quality assessments within regulatory constraints, and have more time for the enjoyable side of planning and the work our communities need them for.
If you'd like to discuss the Victorian planning changes, their implications or how we can help, I'm always happy to talk and I'm here to help. Please reach out to me directly on scott@mylot.ai
