Victoria’s Activity Centres Program has moved another step forward, with final planning controls now in place for 23 Stage 2 Train and Tram Zone Activity Centres across Melbourne.
Together with the 25 Stage 1 centres finalised earlier this year, this brings the program to 48 centres, forming part of the Victorian Government’s broader plan to accommodate around 300,000 additional homes by 2051.
The Stage 2 plans were finalised on 22 July 2026 following two phases of consultation. For landowners and developers, the focus now shifts from reviewing draft controls to understanding what the final changes mean for the development potential and feasibility of individual sites.
The 23 Stage 2 centres are:
The changes have been implemented through Planning Scheme Amendment GC285 across six council areas.
You can view the Victorian Government’s final Stage 2 plans and information here.
The basic principle is straightforward – the Government is looking to increase the availability of homes close to existing public transport, shops, jobs and services.
Generally, the greatest development intensity is directed towards activity centre cores, with building scale reducing through surrounding residential areas.
Two planning controls are particularly important.
The Built Form Overlay (BFO) applies within activity centre cores and sets requirements including building heights, street wall heights and setbacks. It also introduces deemed-to-comply standards designed to provide a clearer and more streamlined assessment pathway.
The Housing Choice and Transport Zone (HCTZ) applies to residential areas surrounding the centres. It supports increased housing density, generally allowing greater development closer to activity centres and transport.
Within these areas, development opportunities vary depending on location and site characteristics. For example, sites larger than 1,000 square metres within the inner catchment may have potential for development of up to six storeys, subject to applicable planning requirements.
Importantly, the nominated heights are not automatic development entitlements. Heritage controls, interfaces, site conditions and other planning requirements still need to be considered.
Ratio reviewed all 23 draft Stage 2 plans earlier this year (check out the article via link here), identifying opportunities for significant housing uplift as well as potential constraints arising from heritage controls, existing local planning controls and site-specific mapping.
While the overall framework remains largely consistent with the draft plans, finalisation now provides greater certainty. Landowners and developers can move beyond the draft framework and assess development opportunities and constraints against the operative planning controls.
For Stage 2, the controls are no longer draft. They now form part of the relevant planning schemes and will guide future development applications.
The Victorian Government has also now announced the final Inner Melbourne Train and Tram Zones, covering Macaulay, Fitzroy and Collingwood, Richmond and Alphington across the cities of Melbourne and Yarra. This completes the rollout of all 50 Train and Tram Zones across Melbourne, with the Inner Melbourne areas expected to provide capacity for around 35,000 additional homes. The broader Train and Tram Zone Activity Centres Program includes an interactive map and information for individual centres.
Another change is on the horizon. The Victorian Government is proposing a new infrastructure contributions system for the 48 Stage 1 and Stage 2 centres, currently planned to apply to relevant planning applications lodged from 1 July 2027.
The finalisation of the controls provides greater certainty, but the headline building heights do not tell the whole story. Development potential can vary significantly from one property to the next depending on site area and frontage, heritage controls, interfaces, access, servicing and other site-specific requirements.
For landowners and developers, now is a good time to understand where a site sits within the final mapping, which controls apply and what those controls could mean for its development potential.
Ratio can provide site-specific planning due diligence and advice on the new controls. Our urban design and visualisation teams can also test built form scenarios to understand potential height, setbacks, massing and interfaces before a design is advanced.
For larger or more complex sites, our transport, landscape architecture and civil engineering teams can consider access, infrastructure, public realm and servicing requirements alongside the planning and design response.
If you have a site within an activity centre and want to understand what the changes mean for your project, get in touch with our team at mail@ratio.com.au.
