Reforming the planning system

Why this is important

Under Victoria’s Housing Statement, the government has set a target to deliver 800,000 net new homes between 2024 and 2034, and 2.24 million by 2051. Plan for Victoria sets out how the state will grow over time, including where new housing will be. At least 70 per cent will be built in established areas and up to 30 per cent in areas that have not yet been developed.

To support housing delivery in established areas, the government is introducing planning system reforms that aim to boost supply by:

• streamlining and fast-tracking planning permit approvals for single dwellings and multi-unit housing
• reducing council backlogs of residential planning applications
• providing greater certainty to home builders and developers on approval times and the pathway to resolve delayed applications
• enabling more dense development in established areas.

The government proposes to embed these reforms in the Planning and Environment Act 1987 through the Planning Amendment (Better Decisions Made Faster) Bill 2025.

Victoria is not currently meeting its annual target of 80,000 net new homes each year and is not meeting statutory targets for the time it takes to approve planning permits.

Given the importance of planning reform to achieving housing targets in established areas, the extent to which these reforms are delivering their objectives and contributing to increased housing supply warrants close examination.

What we plan to examine

We plan to examine how planning authorities are implementing Victoria's planning reforms and if the reforms are boosting supply and reducing approval times for eligible types of homes.

Who we plan to examine

Department of Transport and Planning

A selection of local councils

Further information

This builds on our engagement Planning and Managing Drainage Schemes in Melbourne's Growth Areas (2026).