Train and tram zone activity centre plans encourage more homes to be built in the places they fit best.
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How we plan to support more homes
Every neighbourhood has its own unique character shaped by its streetscapes, buildings, parks and the way people move through them. Train and tram zone activity centre plans will help guide where new homes can go and what kind of homes are most suitable for each area.
These plans seek to include clear planning rules, such as building heights and setbacks, providing certainty for council, communities and developers alike.
We will follow an established process for developing planning controls for each train and tram zone activity centre. This includes looking at the existing buildings, how the land is currently used, transport links and infrastructure.
The plans for 10 activity centres that were part of the pilot program were finalised in April 2025. For more information, visit the Activity Centres Pilot Program page.
The plans for the 25 centres in Stage 1 were finalised on 31 March 2026. For more information, visit the Stage 1: Expansion program page.
We're currently developing plans for the 23 centres in Stage 2.
We expect the majority of train and tram zone activity centre plans will include a ‘core’ and a ‘catchment’ area. Some will also have ‘inner’ and ‘outer’ catchment area.
Core
Inner catchment
Outer catchment
Various heights between six and 16 storeys in most centres, with potential for taller heights in some places in the larger centres
Up to four storeys, and up to six storeys on blocks larger than 1000m2
Up to three storeys, and up to four storeys on blocks larger than 1000m2
The core is the central part of the train and tram zone activity centre, closest to public transport, jobs and services. This area is best suited to accommodate more homes.
The catchment is the surrounding area within approximately 10 minutes’ walk of the core (around 800 metres).
As you move away from the commercial and community core of the train and tram zone activity centre, we expect that the proposed building heights will gradually decrease. This will allow a transition between the activity centre and the surrounding suburb.
New planning tools
There are two new planning tools that support the delivery of more homes in train and tram zone activity centres.
These will make it easier for councils and planning authorities to encourage more homes to be built close to public transport, jobs and services in their own municipalities, helping all levels of government play their part in delivering more homes for Victoria.
A new Built Form Overlay (BFO) has been developed to make planning controls in activity centre ‘cores’ clearer and more consistent across Melbourne.
The overlay determines building heights and design rules, and introduces a new streamlined planning pathway to allow more homes to be built faster.
The overlay sets out building heights and design rules, and introduces a new streamlined planning pathway to allow more homes to be built faster.
If an application is ‘deemed’ to comply’ with the BFO standards, it cannot be refused a permit on the basis of those standards.
The new Housing Choice and Transport Zone (HCTZ) has been developed to enable a diversity of housing in the catchments, and other well-serviced locations with convenient access to public transport, jobs and services. The HCTZ only applies to existing residentially zoned land.
Catchment areas are great places for the types of townhouses and smaller apartment buildings these reforms are designed to support.
Find out more about residential development provisions:
All proposals must comply with overshadowing standards in both the core and catchment areas if the Built Form Overlay (BFO) or Housing Choice and Transport Zone (HCTZ) is applied.
A new streamlined application process
We’re proposing a new streamlined process for planning applications for good quality developments in proposed train and tram zone activity centre cores. Applications will need to meet a set of new standards in the Built Form Overlay (BFO) in order to be approved.
Under this new approach, applications for new developments within the BFO would not be subject to a public notice period. This means council would not notify nearby landowners about the planning application, nor provide 14 days to lodge an objection. If notice and review is required under another part of the planning scheme, these provisions will continue to apply.
This approach to notice and review provisions is not new - in other key parts of Victoria such as within the Capital City Zone in Melbourne and Central Geelong, exemptions from notice and review also exist.
Benefits of a streamlined application process
A faster planning process does not mean a poorer outcome or that the community does not have a say.
If a development proposal meets a ‘deemed to comply standard’ in the Built Form Overlay (BFO), it will benefit from a streamlined planning approval pathway. These exemptions are designed to improve investment conditions and get more homes built faster via:
faster application processing
greater certainty about application outcomes
time and money saved in holding costs
reducing costly VCAT hearings.
In most cases, your local council will remain the responsible authority for assessing whether a proposal is acceptable and will be able to review the proposed design of the development to ensure the design is of a high standard and will not unnecessarily affect neighbouring properties.
Objecting to or appealing an application
Councils will remain the responsible authority for planning applications and permits in most cases.
If applied, the new Built Form Overlay (BFO) streamlines planning controls in the ‘cores’ and sets out ‘deemed to comply’ building heights and design rules. It also applies a new streamlined planning pathway to allow more homes to be built faster.
In the core, if the Built Form Overlay (BFO) is applied, it is likely that there will be no third-party notice and review related to matters such as heights and setbacks (however, there are often other triggers for notice in the planning scheme). The responsible authority (usually the council) will still consider relevant building design matters in granting a permit.
This will include having regard to the relevant council’s planning scheme, including local policy, and any other relevant applicable provisions.
In catchments, notice and review and third-party appeal rights for planning applications remain for four to six storey buildings if the Housing Choice and Transport Zone is applied.
The streamlined process for planning applications makes it faster and easier to build more quality homes in the cores, including removing notice and review requirements for certain planning applications.
These new planning tools make it easier for councils to encourage more homes to be built close to public transport, jobs and services in their own municipalities, helping all levels of government to play their part in delivering more homes for Victorians.
For developments that involve two or more dwellings on a lot up to three storeys, the Townhouse and Low-Rise Code applies.
The code requires developers to meet requirements around things such as street setback, tree canopy, front fences, access, and coverage.
The new Mid-Rise Code introduces planning controls for four to six storey apartments. The code will introduce the streamlined ‘deemed to comply’ planning pathway for compliant developments. This allows faster permits and greater certainty for mid-rise apartment buildings so long as they meet the new standards. Find out more about the Mid-Rise Code.
Funding new infrastructure
When we plan for more homes, we need to consider what else helps a community thrive. To ensure places remain vibrant and accessible, we need to plan new and upgraded infrastructure.
We’re introducing a simpler and more flexible infrastructure funding system, to help deliver the things that train and tram zone activity centres will need into the future.
The funding model, called infrastructure contribution plans (ICPs) is proposed to help deliver the essential infrastructure each centre needs to thrive, such as community services, education and transport infrastructure.
Under the new system, developers will pay a standardised contribution of $11,350 for each new home they deliver. They will also pay $114 per square metre of new commercial space or $57 per square metre of industrial space where developments are above a certain size.
The ICPs aim to ensure that developers benefiting from the opportunities for more homes in these activity centres contribute to upgrades and add to the infrastructure, so these centres remain great places to live as more people call them home.
The new funding program intends to make it easier for councils and the Victorian Government to provide the right infrastructure upgrades in the right places to help activity centres remain great places to live as more people call them home.
Councils will retain two-thirds of the funds for local infrastructure, and will pay one-third to the Victorian Government for state infrastructure. In cases where existing Developer Contribution Plans are in place, the payment for local infrastructure will be reduced.
Once an ICP is applied to a train and tram zone activity centre, the local council will decide exactly which projects to spend its contribution on via its own council budget and capital works program.
The ICP system has been used for the past decade to fund infrastructure for new communities in Melbourne’s growth areas, and has been adapted for train and tram zone activity centres following close consultation with councils and the development industry.
The new funding model is planned to come into effect for the pilot 10 activity centres from 1 January 2027, and for the 48 Stage 1 and Stage 2 train and tram zone activity centres from July 2027.
The timing allows time for the development industry to prepare for the change, and to minimise impacts on the property market.
Managing flood risk
Flood risk is generally not a barrier to building more homes. Except for in very high hazard areas, development of new housing can still occur and will be informed by better guidance on how to design and plan flood-resilient development.
In line with the Plan for Victoria, we’re already working with the relevant authorities to prepare new guidance on how to appropriately build in areas subject to flooding. As part of this, Melbourne Water is updating its flood modelling to provide more in-depth information about known hazards. When finalised, this new flood modelling information will be used by councils when approving permits for housing in areas subject to flooding.
New flood risk ratings and better flood risk information will help landowners and industry understand what housing can be built where and how.
Public consultation
Throughout 2025 and early 2026, we consulted with local residents on the below 48 train and train and tram zone activity centres, which were grouped into Stages 1 and 2:
Stage 1
Cluster
Station/Train and tram zone activity centre
Local Government Area (LGA)
Thornbury
Hight Street (Thornbury), St Georges Road (Thornbury)
Darebin
Heidelberg
Heidelberg
Banyule
Middle Footscray to Tottenham
Middle Footscray (including Seddon), West Footscray, Tottenham (Braybrook - Central West)
South Yarra, Toorak, Hawksburn, Prahran, Windsor, Armadale, Malvern, Toorak Village
Stonnington
Blackburn, Nunawading, Mitcham
Whitehorse
Consultation phases
Consultation for Stage 1 and 2 train and tram zone activity centres has now closed. There were two phases of consultation for each stage.
In Phase 1, we shared program information and invited you to tell us about the places you love locally.
Phase 1 consultation for centres in Stage 1 took place in May and June 2025.
Phase 1 consultation for centres in Stage 2 took place in October and Novemeber 2025.
In Phase 2, we returned to show local communities draft maps to assist in our planning. We wanted to know if we got the details right, or if there was anything that we missed.
Phase 2 consultation for centres in Stage 1 took place in September to October 2025.
Phase 2 consultation for centres in Stage 2 took place from 11 February to 22 March 2026.
Following Phase 2 consultation, we report back and implement our plans (subject to approval by the Minister for Planning). This process has now finished for centres in Stage 1, with plans finalised and in place from 31 March 2026.
We expect this process to take place in mid-2026 for Stage 2 centres.
How we're using your feedback
Feedback provided during consultation periods on the Activity Centre Pilot Program in August 2024 has helped shape our planning for activity centres in Stages 1 and 2. See below for more:
We heard you want to see more homes, and different kinds of homes, close to public transport options and local infrastructure.
Our new planning controls, along with other housing initiatives, will help ensure a variety of housing to be built. These include through programs such as:
Mid-Rise Code, which introduces new planning controls for four to six storey apartments to make them more comfortable, liveable and sustainable
Future Homes, which offer a streamlined planning pathway for three storey apartment developments that use the adaptable Future Homes exemplar designs in eligible locations
Great Design Fast Track, which makes it easier for high-quality medium-density housing to get planning approval.
We heard that upgrading local infrastructure is important to support more homes, so we’re introducing a new funding mechanism to raise funds for new and upgraded local infrastructure.
For the 10 activity centres in the pilot program, this will come into effect in January 2027.
For the 48 train and tram zone activity centres in Stages 1 and 2, this will come into effect in July 2027.
We’re not proposing to remove any open space as part of the Train and Tram Zone Activity Centres Program. This aligns with one of the key pillars of the Plan for Victoria, ‘Great places, suburbs and Towns’.
As more people call these areas home, we want to make sure the local services and infrastructure, including public open space, have the funding they need to grow.
We're proposing a simplified infrastructure funding system to fund the things these suburbs need into the future, which will come into effect in July 2027 for train and tram zone activity centres in Stages 1 and 2.
This system could provide direct contributions for councils and state government to deliver essential infrastructure such as upgrades to open space, and local sporting facilities to support changing communities.
Our draft plans will also consider the public realm. This includes opportunities for urban greening, improving pedestrian connections and increasing canopy cover within activity centres.
We are working with the local council to understand strategic work they have undertaken or planned projects, such as streetscape upgrades and improving pedestrian connections.
In addition, the Victorian Government is delivering the $30 million Pick My Park Program, which allows communities to vote for and submit their own ideas for parks, playgrounds and open spaces. For more information, visit: Pick My Park.
We heard that Victorians want to see more homes in places that are well-serviced by public transport, so the expanded Tram and Train Zone Activity Centres Program focuses on creating capacity for more homes in places with the best access to trains and trams.
We heard about the importance of heritage in some activity centres, so the proposed planning controls consider existing heritage controls
There will be no changes to heritage overlays, and the protection of heritage places will continue as part of this program.
When a development application is submitted, heritage considerations, as set out in the heritage overlay, remain a key part of the assessment process.
