In a busy week for planning, the Department of Transport (DTP) last week announced a range of new initiatives and controls to unlock strategic sites, fast-track two dwelling developments and protect canopy trees in urban areas.

We have outlined the new initiatives and planning controls below:

VC288 – VicSmart has been expanded to include the consideration to two dwellings and two lot subdivision.

To qualify for the VicSmart pathway, a development must meet the 13 neighbourhood character and external amenity standards under Clause 55 (Townhouse and Low Rise Code).  The minimum garden area and maximum building height requirements for sites within the General Residential and Neighbourhood Residential Zones must also be met.

The benefit of this pathway is that Councils are required to make a decision on the application within 10 business days and there are also no advertising or third-party appeal rights.

The proposal will still need to respond to the remaining Clause 55 standards. If all Clause 55 standards are met, Council must issue a permit. If any variations are required to the standards, the standard performance- based assessment will apply.

VicSmart will not apply if a permit is required under an overlay or other provision in the Scheme.

Subdivision

Subdivision of the land into two lots can also be assessed under the VicSmart pathway under the residential zones (excluding Low Density Residential Zone) and various overlays (Environmental Significance Overlay, Heritage Overlay, Design and Development Overlay, Built Form Overlay, Special Building Overlay).

To be considered under the VicSmart pathway, the subdivision must either benefit from a planning permit issued under the abovementioned residential zones to construct up to two dwellings on the site or if each lot will contain either one existing dwelling or one dwelling permitted to be constructed in accordance with the permit.

This amendment comes into effect into all Planning Schemes on 16 October 2025.

VC289 – Clause 52.37 introduces a planning permit requirement to remove, destroy or lop a canopy tree in residential areas (excluding the Low Density Residential Zone).  

This new control will govern canopy trees greater than 5 metres in height with a trunk circumference of more than 0.5 metres and a canopy diameter of 4 metres.  If the removal or lopping of the tree is associated with an existing dwelling or a permit application for one or more dwellings or a residential building, a permit is only required if the tree is located within 6 metres of the street frontage and 4.5 metres of the rear boundary.

The new clause also introduces a canopy tree requirement based upon a sliding scale from 1 tree on a site area of 100sqm to 6 trees up to 1,000sqm.  On larger sites, a total canopy cover of at least 20 percent of the site area is required.  A new canopy tree at maturity is expected to have a height of 6 metres and canopy diameter of 4 metres.

The VicSmart assessment process will apply so there is no third party involvement. However, normal timeframes and third party notice and review will apply where there are additional planning permit triggers (i.e. if the application involves a use and / or development trigger).

A wide range of exemptions to this provision apply, including dead canopy trees, noxious weeds and fire protection purposes, and transitional provisions are in place to exclude existing approved development or current applications lodged before 15 September 2025.

Unlocking Strategic Sites Expressions of Interest (EOI) – DFP to provide a framework to rezone strategically important land.

DTP are calling for expressions of interest for rezoning strategic development sites.

It is aimed at facilitating the redevelopment of strategic land to provide housing and employment opportunities. Suitable sites may include (but are not limited to) former industrial or institutional sites, golf courses and racing tracks. This process is also suitable for rezoning projects that have experienced significant delays through the normal rezoning pathway.

The Minister for Planning will assume the role of the planning authority, meaning Council consent is not required.

DTP has proposed a two-month pilot (concluding on 17 November 2025) and is seeking EOIs from councils and industry for sites that could be rezoned under this pathway.  The eligibility criteria are centred on three key themes of location and scale, complexity, and delivery confidence, and specifically include:

• Must be supported by state, regional and local planning policy.

• Be located within a defined ‘settlement boundary’ or, where a settlement boundary is not present, adjacent to urban zonings.  There are exceptions and this includes Green Wedge zoned land.

• Identify number of dwellings (if relevant) and short to long term jobs to be delivered.

• Must be two hectares or greater in size.

• Adequately serviced and can resolve matters of contamination, flooding, bushfire, biodiversity, heritage and transport.

• Deliver public benefits (such as public open space, affordable housing, infrastructure contributions).

• Does not have an existing planning permit for development granted for the site.

• Demonstrated investment confidence.

Successful applicants will go through the same public notice and assessment process for rezoning. This includes a preliminary assessment by DTP, public consultation and public hearings before the Priority Projects Standing Advisory Committee (if required) before a final decision is made by the Minister for Planning or delegated to DTP.

There is a lot to consider in these new controls and the rezoning initiative.  The Ratio team is here to provide clarity and answer any questions you may have. Contact us at mail@ratio.com.au