12 August 2025

Victoria streamlines small-lot home approvals in three-pronged housing strategy

| By John Murtagh
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artist's impression of small-lot housing

Smaller homes on blocks under 300 square metres will be easier to approve under a new planning code. Image: Victorian Planning Authority.

In an effort to resolve housing issues in the state, the Victorian Government is streamlining the process to build homes on smaller blocks of land.

The recently announced Single Home Code is a statewide amendment to planning schemes to make it easier to obtain approval for single homes and small second dwellings on lots under 300 square metres.

Homeowners often deal with delays under the current system, with uncertainty arising from inconsistent council processes, convoluted paperwork and drawn-out appeals.

Better sustainability protections will also be added to the standards, such as limiting the overshadowing of rooftop solar to create more energy-efficient homes.

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“For too long, homeowners have faced delays and uncertainty – the Single Home Code will make it easier and faster to build more homes,” Member for Southern Metropolitan Ryan Batchelor said.

As long as a home meets updated standards, which include requirements for tree canopy, setbacks, solar access and street amenity, it will be categorised as “deemed to comply”. This means it can be approved without further assessment. Neighbours will be notified and they may provide feedback, but as long as standards are reached, there will be no Victorian Civil and Administrative Tribunal appeals or delays.

The existing 10-day VicSmart fast-track process has been improved with a simplified application process, both for applicants submitting and councils reviewing applications.

All residential zones across the state will be covered by the plan, with clearer, more consistent assessments set to streamline the application and approval system, from the city to the regions.

The update works in tandem with the Townhouse and Low-Rise Code, introduced this year, which aims to create more townhouses and one- to three-storey townhouses.

Mid-rise developments between four and six storeys are also set to be the subject of new standards, with consultation with industry peak bodies and all 79 councils to begin soon.

READ ALSO Victorian Government says working from home ‘should be a right’ as it moves ahead with reform

Each of these reforms targeting small-lot homes and low- and medium-rise properties is aimed at resolving the housing crisis.

“This is another way we’re making our planning system say ‘yes’ – yes to well-designed homes, yes to more homes, and yes to people making the most of the land they already have,” Minister for Planning Sonya Kilkenny said.

“If your proposal meets the standards, you should be able to get on and build. That’s what these changes deliver – faster decisions, less stress, and more homes where we need them.”

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