Changes coming to development and subdivision approvals

Published on 01 October 2025

A new process to develop and subdivide residential land has been announced by the Victorian Government.

While Council is currently working to understand the full impact of the changes and how they will work with our planning approvals system, we understand the new VicSmart permit process will be able to be used for applications for:

  • two new homes on a single lot
  • second home on a single lot
  • subdividing one lot into two.

Banyule Mayor Elizabeth Nealy said that while Council is supportive of efforts to grow housing supply, it must not come at the expense of local involvement.

“Australians are proud of their neighbourhoods and want to have a say in how they grow. While Council supports the need for more homes, we are concerned about the lack of community consultation in this latest change. Council will continue to advocate for our community to have a voice in planning decisions that shape their streets and suburbs.”

Other state-wide changes introduced this year include the new Townhouse and Low-Rise Code that provides "deemed-to-comply" standards for fast approvals. 

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