11 August 2025
We are improving the planning system to allow quicker and more efficient approvals for homes and small second homes on lots under 300 square metres.
The changes follow the introduction of the Townhouse and Low-Rise Code earlier this year, allowing faster permits and greater certainty for townhouses and apartment buildings up to three storeys.
Clause 54, which is part of all planning schemes, has been updated with improved standards focusing on liveability, external amenity and sustainability. Standards include requirements for street setbacks, tree canopies, daylight to existing windows, and more.
There are also new sustainability standards for overshadowing domestic solar energy and rooftop solar energy generation areas to support the energy efficiency of homes.
If the strong new standards are met, the application is ‘deemed to comply’ and no further assessment is required. The existing fast tracked 10-day VicSmart permit process for single dwellings and small second dwellings has been updated to work with the new requirements.
The changes are the next step in delivering housing and planning reforms that make it easier for builders, buyers and renovators to get permits while strengthening the things that make homes and neighbourhoods livable.
What is changing?
The new planning provisions can be viewed at Amendment VC282.
Under these changes, if a homeowner proposes to build or extend a single dwelling or small second dwelling on a lot less than 300 square metres in a residential zone (except for the Low Density Residential Zone), the new standards and deemed to comply process under clause 54 will apply.
We have updated the VicSmart process for eligible clause 54 applications. Following the changes, an application will need to meet an updated list of ‘deemed to comply’ standards to be eligible for VicSmart and will be assessed according to the new provisions rather than separate information requirements and decision guidelines.
Local variations to some state standards have also changed. Local variations for permeability, side and rear setbacks, and walls on boundaries have been removed. For street setback, private open space and site coverage, local variations will only apply if they are more permissive than the state standards.
Here is a summary of the changes to clause 54 standards.
| New Standard | Changes |
|---|---|
| Neighbourhood character | |
| A2-1 Street setback |
|
| A2-2 Building height | No change. |
| A2-3 Side and rear setbacks | No change. |
| A2-4 Walls on boundaries | No change. |
| A2-5 Site coverage | Change from 60% in all residential zones to:
|
| A2-6 Tree canopy | New tree requirement of 1 tree per 100 m2 of site area. |
| A2-7 Front fences | No change. |
| A2-8 Building setback for small second dwellings | No changes. |
| Liveability | |
| A3-1 Street integration | Standard simplified and passive surveillance must be provided. |
| A3-2 Private open space | Reduced from 80m2 of private open space to 20% of the area of the lot but not less than 25 m2, must be private open space. Retains 25 m2 minimum secluded private open space. Alternative compliance through balcony or rooftop area. Retains 8sqm private open space requirement for SSDs. |
| A3-3 Solar access to open space | No change. |
| A3-4 Daylight to new windows | No change. |
| A3-5 Safety and accessibility for small second dwellings | No change. |
| External amenity | |
| A4-1 Daylight to existing windows | No change. |
| A4-2 Existing north-facing windows | No change. |
| A4-3 Overshadowing secluded private open space | Increases allowable overshadowing to 50 per cent. |
| A4-4 Overlooking | Standard to no longer apply to bedrooms. |
| Sustainability | |
| A5-1 Permeability | No change. |
| A5-2 Overshadowing domestic solar energy systems | NEW Environmentally Sustainable Design (ESD) standard to protect existing rooftop solar from overshadowing. |
| A5-3 Rooftop solar energy generation area | New ESD standard to provide area for rooftop solar energy generation. |
| A5-4 Solar protection to new north facing windows | NEW ESD standard to provide shading to north facing windows for summer heat. |
The following standards have been deleted or amalgamated:
- 54.02-1 Neighbourhood character (Deleted)
- 54.03-5 Energy efficiency protection (Amalgamated with new ESD standards)
- 54.06-1 Design detail (Deleted).
When does this change take place?
Amendment VC282 was published in the Victoria Government Gazette on 11 August 2025.
The changes will come into effect on 8 September 2025.
In most cases, applications for planning permits or amendments to planning permits lodged before the changes commenced will be subject to the provisions that applied before the amendment.
Building Regulations 2018
In Victoria, the Building Act 1993, Building Regulations 2018 (Building Regulations), and Plumbing Regulations 2018 provide the framework for the regulation of building and plumbing work in Victoria. This framework is the responsibility of the Minister for Housing and Building.
Following the introduction of these new planning standards for lots under 300 square metres, we will update Victoria’s building regulations and relevant Minister’s guidelines to align with new planning requirements.
Information about the application of Building Regulations 2018 can be found on understanding standards and regulations.
More information
You can find out more about Victoria’s residential development provisions on Residential Development.
Page last updated: 29/08/25