Victoria planning permit reforms: what's next for small subdivisions

Victoria's planning permit reforms are now law, but the part most home owners care about has not started yet. The Planning Amendment (Better Decisions Made Faster) Act 2026 received Royal Assent on 17 February 2026 and will create three planning permit assessment streams, matched to the risk, complexity and impact of each application. The Act has a default commencement date of 29 October 2027.

Some sections began on 3 June 2026 and new compliance and enforcement powers commenced on 3 August 2026. The permit streams, and the new limits on third-party appeals, are still to come. If you are wondering whether your block could be split, here is where things stand as at 2 October 2026.

What is changing

According to Planning Victoria, once fully in force the Act will:

establish three planning permit assessment streams, aligned with the risk, complexity and impacts of an application
limit third-party appeal rights to those who receive direct notification of a planning permit application
create three pathways for planning scheme amendments, including a low-impact pathway that goes through public exhibition without a planning panel hearing
give more flexibility to remove or vary restrictive covenants through a permit application.

When the Bill was introduced on 28 October 2025, the Government described the three streams and their target timeframes:

Stream (as announced)	Target timeframe	Notice and third-party appeals
Stand-alone homes and duplexes	10 days	No notice, no third-party appeals
Townhouses and low-rise developments	30 days	No notice, no third-party appeals
Larger apartment buildings	60 days	Only those directly impacted get notice and can appeal

Premier Jacinta Allan said: "We want a planning system that makes better, faster decisions because we want more homes for young people."

During debate in the Legislative Assembly on 13 November 2025, the Member for Mulgrave, Eden Foster, said assessment type 1 would cover simple, low-risk proposals clearly envisaged by the planning scheme, replace the current VicSmart process and include a deemed approval if no decision is made within the prescribed period. She said type 2 would apply to proposals that comply or substantially comply with specified codes, and type 3 would mirror the existing full permit process with public notice.

Planning Victoria has not yet published which applications, including subdivisions, will fall into each stream.

When it applies

The Bill was introduced on 28 October 2025, passed by Parliament, and received Royal Assent on 17 February 2026 as Act No. 3 of 2026.

Here is the commencement status on Planning Victoria's page, last updated 28 July 2026:

Commenced 3 June 2026: changes to Distinctive Areas and Landscapes, some compensation provisions, 30 days' notice to councils before VC amendments, and changes to infrastructure contributions (ICP and GAIC).
Commenced 3 August 2026: strengthened compliance and enforcement provisions, except section 189.
Not among the commenced provisions listed: the three permit streams, the limit on third-party appeal rights, the new amendment pathways and the remaining reforms.

The Government says the 29 October 2027 default date allows time to prepare supporting changes, including to the planning regulations, Ministerial guidelines, the Victoria Planning Provisions and planning schemes, and that it will consult councils, industry and the community along the way.

Planning Victoria's page says draft regulations are open for feedback through Engage Victoria. That consultation covers planning scheme amendments and compensation, not the permit streams. We could not confirm a closing date from the official pages.

What it could mean for your block

For now, nothing about the permit process has changed under this Act. Applications are still assessed under the existing rules.

That includes VicSmart. Since Amendment VC288 took effect on 16 October 2025, more classes of residential two-lot subdivisions, and eligible applications for two homes on a lot, can use VicSmart. Planning Victoria says that if an application meets all the relevant rules, it can be approved within 10 business days, and it is not advertised. Not every lot qualifies: Planning Victoria notes that applications affected by heritage, flooding, bushfire and certain other controls may not be eligible.

When the new streams start, owners of simpler proposals in residential areas could see quicker decisions and fewer appeals. But the details that decide who benefits have not been released yet. That includes exactly which proposals are in each stream, the codes they must meet and how overlays will be treated.

Whatever the pathway, the basics still decide whether a split is realistic:

the zone and minimum lot size in your local planning scheme
overlays such as heritage, bushfire, flooding and vegetation
sewer and water connection, access and frontage
any restrictive covenants on the title.

How to check your property

Look up your zone and overlays with VicPlan, then read the matching clauses in your council's planning scheme.
Check your title for covenants or easements that could affect a subdivision.
Ask your water corporation about sewer and water connections for an extra lot.
Read our Victoria subdivision guide for the steps from permit to new titles.
For a detailed report on your address, order a Subdivision Checker report. A licensed surveyor or town planner can confirm what applies to your land.

Frequently asked questions

Have Victoria's new planning permit streams started?

No. The Planning Amendment (Better Decisions Made Faster) Act 2026 received Royal Assent on 17 February 2026, but the three planning permit assessment streams are not among the provisions that have commenced so far. The Act has a default commencement date of 29 October 2027, and some parts have been brought in earlier by proclamation.

Will a small subdivision be fast-tracked under the new system?

The Victorian Government has not yet published which applications will fall into each new permit stream. Its October 2025 announcement referred to stand-alone homes and duplexes in the 10-day stream. In the meantime, eligible two-lot subdivisions can already use VicSmart, which Amendment VC288 extended to more classes of residential two-lot subdivision.

Can neighbours still object to a planning permit in Victoria?

Under the current rules, yes, for applications that require notice. Once the relevant provisions commence, the Act will limit third-party appeal rights to those who receive direct notification of a planning permit application. The Government has said its first two streams will require no notice and have no third-party appeals.

Sources

This article is general information only, current at 2 October 2026. Proposals can change before they take effect. Speak to a licensed surveyor or town planner about your property.