18 September 2025

The Department of Transport and Planning is creating a fast-tracked assessment process for two new homes on a lot, second homes on a lot, and two-lot subdivisions.

As of 16 October, planning applications for two homes on a lot will be able to use VicSmart, our simple and fast planning permit process for eligible applications.

If a planning application meets all the relevant planning rules it can be assessed via VicSmart, and can receive approval within 10 business days. This saves applicants from the standard statutory timeframe of 60 days plus potential delays. Because the requirements are met upfront, under VicSmart there’s no need to notify neighbours.

Development will still have to adhere to strong existing requirements to make sure new homes are high quality and suit the neighbourhood. If other planning controls apply like heritage or flooding controls, the application may not be eligible for VicSmart.

Amendment VC288 will make building a second home or subdividing easier by:

  • applying the 10 business day VicSmart process to eligible applications to construct two homes on a lot in residential zones (other than the Low Density Residential Zone)
  • making more classes of residential two lot subdivisions eligible for VicSmart
  • updating the subdivision provisions that apply to two lot subdivisions in the residential zones (other than the Low Density Residential Zone)
  • modifying the application of clause 56.03-5 (Neighbourhood character objective) to subdivision applications.

The move builds on the changes we made in late 2023 allowing homeowners to build small second homes, such as granny flats, without a planning permit in most circumstances.

By making it easier for homeowners to subdivide or build two homes on their land, it will be easier for more Victorians to find a home in an established suburb close to transport, jobs, schools and services.

In Victoria’s Housing Statement, The Decade Ahead 2024–2034, the Victorian Government committed to delivering housing and planning reforms that benefit Victorians and make it easier for builders, buyers and renovators to get permits.

This is the latest step in that journey, making it faster and easier to deliver more homes in the places Victorians want to live.

What is VicSmart?

VicSmart is a simple and fast planning permit process for straightforward planning applications.

Key features of VicSmart include:

  • a 10 business day permit process
  • applications are not advertised
  • information to be submitted with an application and what council can consider is pre-set
  • the CEO of the council or delegate decides the application.

What are the new VicSmart application classes?

Two dwellings on a lot

Type of application
  • Construct one dwelling if there is no more than one dwelling existing on a lot
  • Extend a dwelling if there are two dwellings on a lot
  • Construct two dwellings on a lot
Where this applies
  • Mixed Use Zone
  • Township Zone
  • Residential Growth Zone
  • General Residential Zone
  • Neighbourhood Residential Zone
  • Housing Choice and Transport Zone
Criteria

Development must meet the standards contained in:

  • Clause 55.02-1 Street setback objective
  • Clause 55.02-2 Building height objective
  • Clause 55.02-3 Side and rear setbacks objective
  • Clause 55.02-4 Walls on boundaries objective
  • Clause 55.02-5 Site coverage objective
  • Clause 55.02-6 Access objective
  • Clause 55.02-7 Tree canopy objective
  • Clause 55.02-8 Front fences objective
  • Clause 55.04-1 Daylight to existing windows objective
  • Clause 55.04-2 Existing north-facing windows objective
  • Clause 55.04-3 Overshadowing secluded open space objective
  • Clause 55.04-4 Overlooking objective
  • Clause 55.05-2 Overshadowing domestic solar energy systems objective
Application requirements and assessment provisions
  • Clause 55 two or more dwellings on a lot and residential buildings.
  • The application requirements, decision guidelines and deemed-to-comply framework set out in clause 55 will apply to these VicSmart applications rather than separate information requirements and decision guidelines.

Two lot residential subdivision

Type of application
  • Two lot residential subdivision following the issue of a planning permit for a dwelling
Where this applies
  • Mixed Use Zone
  • Township Zone
  • Residential Growth Zone
  • General Residential Zone
  • Neighbourhood Residential Zone
  • Housing Choice and Transport Zone
  • Environmental Significance Overlay
  • Heritage Overlay
  • Design and Development Overlay
  • Special Building Overlay
Criteria
  • A permit has been issued under a provision of a residential zone (other than the Low Density Residential Zone) to construct up to two dwellings on the land, and the permit has not expired.
  • Each lot will contain either:
    • one existing dwelling; or
    • one dwelling permitted to be constructed in accordance with the permit.
Application requirements and assessment provisions

As relevant:

  • Clauses 59.02 Subdivision of buildings and car parking spaces
  • Clause 59.07 Applications under a Heritage Overlay
  • Clause 59.08 Applications under a Special Building Overlay

Subdivisions with vacant land

Type of application
  • Two lot residential subdivision that creates at least one vacant lot
Where it applies
  • Mixed Use Zone
  • Township Zone
  • Residential Growth Zone
  • General Residential Zone
  • Neighbourhood Residential Zone
  • Housing Choice and Transport Zone
Criteria
  • The subdivision creates at least one vacant lot.
  • The land does not contain native vegetation if it has an area of 0.4 hectares or more.
  • The land is not located in a bushfire prone area, Environmental Audit Overlay or Neighbourhood Character Overlay.
  • The land is connected to reticulated sewage if it is in the Township Zone.
Application requirements and assessment provisions
  • New clause 59.11 Two lot residential subdivision

Find out more

Page last updated: 18/09/25