Better Decisions, Made Faster: A Landmark Step Forward for Victoria’s Planning System
- Carmel Homes
- Oct 30
- 5 min read
Updated: Nov 6
Written by Adib Adely, Director of Carmel Homes.
Victoria’s building and development industry is on the cusp of a major transformation. Premier Jacinta Allan and Minister for Planning Sonya Kilkenny last week announced the introduction of the Planning Amendment (Better Decisions Made Faster) Bill 2025 into Parliament, a long-awaited reform that promises to modernise the Planning and Environment Act 1987.
For years, both homeowners and builders have shared the same frustrations: lengthy approval delays, inconsistent decision-making, and costly red tape that slows down the path from design to delivery. This Bill promises to change that, bringing speed, clarity, and confidence to a process that has long needed modernisation.
This update to legislation represents a bold reshaping of how planning works in Victoria, making the system much more responsive, efficient, and suitable for a growing state.
A System Ready for Renewal
Victoria’s Planning and Environment Act 1987 laid the foundation for how planning decisions are made, but that was nearly forty years ago. The industry, population, and expectations of homeowners have evolved enormously since then.
What was once an effective system has, over time, become weighed down by complexity and outdated processes. As Victoria continues to grow and the demand for housing intensifies, it’s clear the planning framework must evolve too.
The Better Decisions Made Faster Bill is designed to do exactly that, modernising the way permits are assessed, streamlining approvals, and ensuring decisions are made proportionate to the project’s size and impact.
For custom home builders like us, this marks a welcome shift. Faster approvals means less time spent navigating administrative barriers and more time dedicated to what truly matters, thoughtful design, expert craftsmanship, and a seamless client experience.
The Three-Stream Permit System: Tailored for Real-World Projects
A key feature of the new Bill is the introduction of a three-stream planning permit system. This approach recognises that not all projects should face the same approval process, a long-overdue acknowledgment for builders and homeowners alike.
Under this reform, planning permit timeframes will be tailored to the project type:
10 days for stand-alone homes and duplexes
30 days for townhouses and low-rise developments
60 days for larger apartment buildings
Currently, the average planning permit in Victoria takes around 140 days to be approved. If there’s an objection, that timeframe can blow out to more than 300 days, an unacceptable delay for projects that often involve substantial financial and emotional investment.
By introducing clearer and faster approval streams, the government aims to deliver greater certainty for all parties.
For Carmel Homes’ clients, that means:
Reduced holding costs during the design and pre-construction phase
Shorter wait times between planning and building permits
A more predictable start-to-finish timeline
These efficiencies will allow homeowners to plan with greater confidence, knowing when their dream home will move from paper to ground.
Common-Sense Appeal Rights: Clarity Without Compromise
Perhaps one of the most welcome updates in the new Bill concerns third-party appeal rights, an issue that has long frustrated both builders and clients.
Victoria currently has the broadest third-party appeal rights in the country, allowing almost anyone, even those with no direct link to a site, to object to a planning permit. While community input is important, the current system has often been exploited, leading to delays that can stretch projects out for months or even years.
Under the proposed reforms:
No third-party appeals or notice will be required for homes, duplexes, townhouses, and low-rise developments.
For larger or higher-density projects, only those directly impacted, such as neighbouring residents, will retain the right to appeal.
This shift brings balance back to the system. Local voices are still heard where it matters most, but frivolous or unrelated objections will no longer stall responsible development.
For the luxury custom home sector, where attention to detail and careful design already ensure sensitivity to surrounding contexts, this reform supports a more rational, outcome-focused approach.
Smarter, Tiered Planning Scheme Amendments
Beyond permits and appeals, the Bill also proposes major improvements to planning scheme amendments, the mechanism through which councils manage zoning, overlays, and local planning rules.
Currently, even the smallest administrative change, such as correcting a zoning error or clarifying text, must go through the same exhaustive process as a large-scale rezoning proposal. This creates unnecessary backlogs and delays.
The new Bill introduces a tiered amendment system, making it possible for smaller updates to move quickly while ensuring complex changes still undergo full assessment.
For builders, this reform means greater flexibility and consistency across local government areas, reducing confusion and aligning planning outcomes with practical realities on site.
Practical Fixes to Everyday Delays
In addition to structural changes, the Better Decisions Made Faster Bill includes several operational improvements that directly address the pain points experienced by builders and developers.
Some of the most significant include:
Statutory clock pauses: When more information is requested, the approval clock will pause instead of restarting. This prevents weeks of lost time caused by administrative resets.
Referral authority incentives: Referral authorities will now be encouraged, and expected, to meet their timeframes, reducing one of the most common sources of planning delays.
Clearer compliance procedures: New, defined processes will guide how submitted plans and documents are assessed against permit conditions, ensuring shared understanding between councils, builders, and clients.
These are small changes with big impacts. They remove the hidden inefficiencies that can quietly derail timelines and costs, allowing builders like Carmel Homes to deliver projects with greater accuracy and dependability.
A Boost for the Broader Industry
The Victorian Government estimates these reforms could unlock more than $900 million in economic value each year. That figure reflects not just faster approvals, but also the ripple effects of renewed construction activity, improved housing supply, and increased investment confidence.
For the luxury home sector in particular, this reform could accelerate the pipeline of bespoke projects, enabling homeowners who have been waiting months for approvals to finally move forward.
At the same time, it positions Victoria as a state that values both efficiency and design excellence, encouraging responsible growth and innovation in the way we build.
Building a Better Victoria, and a Better Experience
The Better Decisions Made Faster Bill is exactly what its name promises, a blueprint for a smarter, faster, and fairer planning system. It recognises the frustration caused by drawn-out approvals, the urgent need for housing supply, and the importance of giving both builders and homeowners confidence to invest and deliver.
Premier Jacinta Allan described the reform as “bringing Victoria’s planning system into the 21st century.” Minister Sonya Kilkenny echoed this sentiment, noting that neighbours have a right to their say on major developments, but that “new homes shouldn’t be delayed by people who don’t live anywhere near a proposed project.”
For Carmel Homes, these changes signal a future that aligns with our values: efficiency without compromise, creativity without restriction, and quality without delay.
We believe that design should be celebrated, not hindered, by the planning process. With a modernised framework, builders and homeowners alike can look forward to projects that start sooner, progress smoother, and finish stronger.
In short, this new planning reform is a change that finally builds momentum.
To read more, visit Master Builders Victoria’s website for the full statement: “MBV Says Planning Legislation Overhaul a Step in the Right Direction.”
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