The Victorian Planning Amendment (Better Decisions Made Faster) Act 2026 (the Act) received royal assent on 17 February 2026. This legislation represents the most significant overhaul of Victoria’s planning laws in decades, extensively amending the Planning and Environment Act 1987 (the Principal Act) across multiple stages of the planning process. The Act aims to simplify planning permit assessment, provide greater certainty on strategic planning scheme amendments, and reduce complexity around varying restrictive covenants.
The Act’s new objectives include to increase housing supply, diversity, and affordability, and to facilitate efficient infrastructure provision.
Three-Tiered Planning Permit Assessment
The Act introduces a three-tiered approach to the assessment of planning permit applications, aimed at reducing the time and cost associated with obtaining such permits.
The Act amends Part 5 of the Principal Act, introducing the following novel categories of permit applications in order of complexity:
- Type 1 – for low impact, small scale developments, such as single dwellings and minor subdivisions. A project assessed as type 1 is not subject to public notice requirements or objections and will be deemed as approved if not determined within the prescribed time. Though greater clarity will come with amendments of the planning regulations, this deemed approval period is estimated to be 10 days.
- Type 2 – for moderate impact developments that are compliant with planning policies. Though also not an application type against which objections may be made, some “specified type 2 applications” may be subject to notice requirements. People who receive notice may comment on the proposed development, though a comment does not amount to an objection.
- Type 3 – for more complex development subject to the full process of assessment, including the provision of notice and receipt of objections. Under new section 57(2A), a responsible authority may reject an objection that it considers frivolous, vexatious, irrelevant, or made to secure a commercial advantage.
This three-tiered framework systematically reduces the scope for objection and delay within the majority of applications. For developers, this is a positive reform, simplifying and expediting the approval process commensurate to the complexity of the project. We look forward to further regulations and guidance on the precise scope of coverage contemplated by each of these streams.
Impact-Based Planning Scheme Amendments
A three-tier approach has also been adopted in relation to amendments to planning schemes. Revised section 16N categorises potential amendments into the following groups based on impact:
- Low-impact amendment – small scale amendments where public submissions and panel referrals are not required;
- Medium-impact amendment – opens the amendment to public submissions, but dispenses with panel referrals; and
- High-impact amendment – exhibition and independent review of the amendment is required.
Additionally, in relation to medium and high impact amendments, notice of an amendment must be given to any native title holders, traditional owner group entities, and registered Aboriginal parties in the area affected by the amendment.
Similarly to the staggering of planning permit assessments, this tiered approach in relation to scheme amendments is designed to fast-track straightforward amendments while ensuring due scrutiny for significant changes. The exact scope of the categorisations will be set by regulations.
Easing Removal of Restrictive Covenants
The Act also introduces a series of significant reforms in the way restrictive covenants are treated in the permit process, greatly shifting the balance between the rights of the covenant beneficiary and the facilitation of streamlined, orderly development in the broader public interest.
Contrary to the prior regime, permits may now be granted despite potentially breaching a restrictive covenant. The responsible authority would not be liable for any loss arising out of that breach. To similar ends, the Victorian Civil and Administrative Tribunal is authorised to amend a permit despite potentially creating opportunities for a registered restrictive covenant to be breached.
In considering whether a permit should allow the removal or variation of a restriction, a responsible authority must consider:
- The interests of the owner of the dominant tenement;
- Victorian state and regional planning strategy; and
- The merits of the proposed development itself, among others.
Notably, financial loss to the beneficiary of the covenant is excluded from the list of matters to be considered.
Compensation for Land Reserved for a Public Purpose
Part 5 of the Principal Act allows for owners or occupiers of land reserved for a public purpose to seek compensation from the planning authority for financial loss.
The Act restricts the type of loss able to be claimed by clarifying that references to compensable financial loss are to actual financial loss, and references to value mean market value. Claims for legal and other professional expenses incurred in connection with submitting compensation claims have also been limited to expenses accruing after the right to compensation arises.
The amendment further restricts a landowner’s right to compensation by expanding the circumstances in section 98(3) where a person cannot claim compensation to include:
- Where the land has been vested in the planning authority by purchase, compulsory acquisition, or otherwise; and
- Where a permit granted in relation to the land provides that compensation is not payable.
A new two-year limitation period on the making of compensation claims has also been introduced, with the period starting on the date on which the right to compensation arises.
Gifts and Donations Disclosure
The Act introduces a new disclosure regime for political donations and gifts given within a period of two years prior to the submission of a planning application.
Relevant reportable gift recipients include the Minister, Secretary to the Department, Ministerial Officers or Parliamentary advisors, Councillors, and Council staff, depending on the nature of the responsible authority. The disclosure must include matters such as the names of donors and recipients as well as the value of the gift.
New section 113G makes it an offence to knowingly or recklessly fail to declare a reportable gift or donation, with a breach punishable by a fine of 240 penalty units (currently AU$203.51 per unit), two years imprisonment, or both.
Strengthened Enforcement Powers
The Act also considerably strengthens enforcement powers to respond to contraventions against the Principal Act.
A new general offence under section 126A makes it an offence to give false or misleading statements or documents to a person or body carrying out a function under the Principal Act. These offences are punishable by a fine of 240 penalty units, two years imprisonment, or both.
Following a person’s conviction for a planning offence, courts may now also make a range of new orders including:
- Adverse publicity orders – requiring wrongdoers to publicise their own offences, typically in electronic and print media;
- Commercial benefits orders – requiring payment of up to three times the estimated gross commercial benefit derived from the offence;
- Supervisory intervention orders – imposing compliance requirements of up to one year for systematic or persistent offenders; and
- Industry exclusion orders – prohibiting systematic offenders from participating in the delivery of services relating to the commercial development of land.
Finally, the court is also empowered to order a person to pay a civil penalty of up to 2,000 penalty units for a natural person and 10,000 for a corporation in response to a contravention of a civil penalty provision.
This dramatically enhanced enforcement regime sends a clear message that planning noncompliance carries with it serious commercial and reputational consequences.
Next Steps
The Act is due to commence on 29 October 2027 to allow industry participants, councils, and planning practitioners sufficient time to incorporate changes into their operational practices. In the interim, flow-on amendments are also expected to be made to the Planning and Environment Regulations 2015, Victorian planning provisions, and ministerial guidelines.
While the Act offers real and tangible opportunities for faster decision making, deemed approvals, and a significantly curtailed objection system, it also restricts the ability of neighbours, covenant beneficiaries, and community groups to have their say.
