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The Victorian Government is implementing a legislative reform program to ensure Victoria’s planning system can meet the needs of the community, councils, landowners, businesses and governments now and into the future.

Planning Amendment (Better Decisions Made Faster) Act 2026

The Planning Amendment (Better Decisions Made Faster) Act 2026 has been passed by Parliament and received Royal Assent on 17 February 2026.

The Better Decisions Made Faster Act makes changes to the Planning and Environment Act 1987 (PE Act) to provide a more effective and efficient statutory planning framework to support the delivery of Victoria’s Housing Statement and the actions of Plan for Victoria, including the aim to build 2.24 million homes across Melbourne and our regional cities and towns over the next 30 years.

The Act responds to recommendations arising from the Independent Broad-based Anti-Corruption Commission’s Operation Sandon Special Report, which seeks to improve transparency and accountability in Victoria’s planning system. It also allows the Government to act on recommendations made in the Yoorrook Justice Commission's report, Yoorrook Truth be Told.

The Act makes amendments to the PE Act to establish clear pathways for planning permits and planning scheme amendments that are proportionate to complexity, risk and the potential impacts of projects. This will allow lower impact amendments and permits to be processed and approved faster, making it more efficient and cost effective for councils and Government to make planning decisions that will unlock housing and economic opportunities.

Once fully implemented, the Act will:

  • Establish three planning permit assessment streams to ensure alignment with the risk, complexity and impacts of any given application.
  • Establish three pathways for planning scheme amendments that are proportionate to complexity, risk and the potential impact of a given amendment.
  • Allow affordable housing contributions to be required as a condition of a planning permit.
  • Establish a mechanism for state and regional plans to be formally approved, and then require planning authorities and the Minister for Planning to ensure that planning scheme amendments are consistent with approved plans.
  • Provide greater flexibility to remove or vary restrictive covenants through an application for a planning permit.
  • Increase enforcement powers to provide for more effective, consistent and coordinated compliance monitoring and enforcement.
  • Update planning compensation legislation to align with case law and improve clarity.
  • Update requirements regarding distinctive area landscapes to reduce the administrative burden of planning authorities and decision makers.
  • Ensure that Registered Aboriginal Parties are invited to participate in strategic planning on Country and are given early notification of proposed development on land that has been prescribed to be culturally sensitive.
  • Limit third-party appeal rights to those who receive direct notification of a planning permit application.
  • Improve flexibility in how infrastructure contributions plans can be prepared and administered.

The passage of this Act marks the most significant update to Victoria’s planning legislation and systems in decades. To help councils, industry, and Victoria’s planning practitioners prepare for these reforms, the Act has been passed with a default commencement date of 29 October 2027. This will allow time for us to prepare supporting changes to our planning system including changes to the Planning and Environment Regulations 2015, preparing new Ministerial guidelines, updating the Victoria Planning Provisions, and other updates to Victoria’s planning schemes and guidance materials.

We will consult with local government, the development industry and the community as we make these supporting changes over the coming years.

Find out more:

First proclamation and commencement of reforms

While the Act has a default commencement date of 29 October 2027, some provisions that make immediate practical improvements to the PE Act were proclaimed on 2 June 2026 and came into in effect from 3 June 2026.  New compliance and enforcement provisions have been set to come into effect on 3 August 2026.

The following provisions of the Planning Amendment (Better Decisions Made Faster) Act 2026 come into effect from 3 June 2026:

  • Updates to Distinctive Areas and Landscapes (DALs) provisions
  • Changes to compensation provisions
  • New requirements to give notice of VC amendments
  • Changes to how Infrastructure Contributions Plans (ICPs) can be administered
  • Changes to how Growth Area Infrastructure Contributions (GAIC) can be administered.

Updates to Distinctive Areas and Landscapes (DALs) provisions (sections 68(3), 71 and 72)

DALs are regions recognised for their significant environmental, social, cultural and economic values. They are essential to the functioning of our urban areas by providing clean air, water, food, resources and recreational opportunities.

The reforms will:

  • Extend the timeframe for the Minister for Planning to prepare a Statement of Planning Policy from one year to two years after an area is declared as a DAL
  • Allow for quicker and simpler corrections to Statements of Planning Policy and protected settlement boundaries
  • Reduce administrative burden on planning authorities and decision-makers to declare and protect DALs.

Together, these changes support the ongoing protection and management of Victoria’s most valued landscapes.

Further amendments to the DALS provisions will commence at the same time as amendments to the planning scheme amendment process.

Compensation provisions (section 203)

The changes to compensation provisions that will commence on 3 June 2026 will allow the Supreme Court and the Victorian Civil and Administrative Tribunal (VCAT) to pause or reduce the accrual of interest on disputed compensation claims where there is good cause, such as where the claimant causes a delay.

This reform will support faster outcomes by encouraging earlier negotiation and resolution of claims and reducing the incentives to prolong disputes.

The remaining provisions relating to compensation will commence and come into effect at a later date.

Notice of VC amendments (sections 7(1) and 10)

VC amendments introduce changes to the Victoria Planning Provisions and can affect multiple planning schemes at once.

Under the new provisions the Minister for Planning must provide at least 30 days’ notice to affected councils before approving VC amendments. This will allow councils more time to prepare for changes and manage impacts on active planning applications.

The Minister will have the discretion to exempt some VC amendments from this requirement, including administrative amendments (e.g. technical corrections) and urgent amendments responding to environmental or other risks.

Infrastructure Contributions Plans (Part 9 division 1)

Infrastructure Contributions Plans (ICPs) help fund essential infrastructure to support growing communities.

In December 2025, we announced that we are expanding the ICP system to apply to train and tram zone activity centres and Suburban Rail Loop East precincts, to help deliver the things these communities need into the future.

The Act included reforms to provide more flexibility to determine what Infrastructure, facilities and services will be provide in response to growth and when investments will be made.

This proclamation brings those changes into effect and also enables:

  • Allowing monetary contributions to fund land acquisition, where including land in the plan is not practical
  • Enabling funding for infrastructure located outside an ICP area, where there is a sufficient nexus between the needs of the growing community in the plan area and the investment being proposed.
  • Supporting delivery of infrastructure where land constraints limit provision within the plan boundary.

Growth Area Infrastructure Contributions (Part 9 division 2 (except section 223))

Growth Area Infrastructure Contributions (GAIC) support the funding of major infrastructure in Melbourne’s growth areas.

The reforms will provide flexibility for GAIC funding to be used for regionally significant infrastructure located outside contribution areas, where it services those areas.

The Growth Areas Public Transport Fund (GAPTF) has been changed to the Growth Areas Transport Fund (GATF), allowing for the funding of state roads, and walking and cycling infrastructure.

This will enable more flexible and equitable investment across transport infrastructure.

Compliance and enforcement (Part 9 – except section 189)

Strengthened compliance and enforcement provisions will commence and be in effect from 3 August 2026.

These reforms provide for more effective, consistent and coordinated compliance with planning rules.

Central to the new enforcement powers are significantly increased financial penalties; the ability to apply civil penalties and a lower burden of proof; and the availability of new court-based sanctions that are more proportionate to the commercial benefits of non-compliance.

The delayed commencement allows time for councils, courts and enforcement officers to prepare for the transition and understand the new rules.

Further information will be provided ahead of commencement.

Section 189 which will introduce the requirement to develop and maintain a monitoring, compliance and enforcement policy.  This reform is not commencing on 3 August 2026. It will commence at a later date.

Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025

All provisions contained in the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 came into effect on 25 November 2025. Implementation activities, including amendments required to the  Planning and Environment Interim Regulations 2026 (PE Regulations) are expected to be completed by mid-2026

The remaining reforms include changes to:

  • planning scheme amendments
  • planning permits
  • Ministerial call-ins and panels
  • the Metropolitan Planning Levy
  • planning compensation claims.

Planning scheme amendments

The ability for a person to request a council to prepare a planning scheme amendment will be formalised and the council will be required to advise the person and the Minister of their decision on the request. The council will need to provide reasons for not progressing a planning scheme amendment request.

The Minister will be allowed to elect to continue a planning scheme amendment (or part of a planning scheme amendment), if the amendment has been abandoned by the planning authority. The Minister becomes the planning authority for the remainder of the process.

A new low-impact pathway commensurate with the risk profile of less complex amendments is created. These amendments will go through public exhibition but not require planning panel hearings to resolve submissions. Classes of amendments suitable for this pathway may also be prescribed in the PE Regulations for a streamlined authorisation process.

Planning permits

Responsible authorities will have an opportunity to undertake an initial check within five business days of receipt of a permit application to determine if the required supporting information and application fee has been provided. If after a request for the information has been made the information is not provided, the application will be considered void and of no effect.

The amendments will enable clarification of the matters a responsible authority must consider when determining whether the grant of a permit may cause material detriment to others to assist responsible authorities in identifying who notice should be given to when giving notice of an application.

The default planning permit expiry times for the use and development of land will be extended from two years to three years to commence a use or development and five years to complete a development.

Ministerial call-ins and panels

The Minister is provided with the discretion to refer a planning permit application that has been called-in by the Minister to a planning panel by replacing in section 97E the term “must” for “may”.

Metropolitan Planning Levy (MPL)

The Minister will be able to exempt applicants from having to pay the MPL in certain circumstances, including where an MPL payment has already been made for substantially the same application.

Certain classes of applications and certain circumstances will also be able to be prescribed as not being leviable planning permit applications.

Planning compensation claims

New requirements for planning compensation claims include:

  • a claim must be made in the prescribed form, and
  • a claim must be accompanied by supporting evidence as specified by the Minister by Order in the Government Gazette.

The amendments also introduced a head of power to prescribe a rate of interest to be applied when there are disputes about compensation payable due to the reservation of land for public purposes. The prescribed rate of interest would be applied to the difference between the amount of the claim made by the landowner and the amount of compensation offered by the state.

Page last updated: 02/06/26