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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.

The new code introduces a deemed to comply assessment pathway to support faster decisions and greater certainty for townhouses and apartment buildings up to three storeys at clause 55 of all planning schemes.

Links to:

Please note: an accessible version of the Designing better medium density housing in Victoria document will be published on the 17 March 2025.

Clause 55 Two or more dwellings on a lot and residential buildings (one to three storeys)

Clause 55 of all planning schemes applies to the development of two or more dwellings on a lot and residential buildings up to and including three storeys.

A planning permit is always required for these developments in the residential zones.

Clause 55 does not apply to a development of four or more storeys. Clause 57 applies to residential development of four storeys.

When land is within the Residential Growth Zone, General Residential Zone, Neighbourhood Residential Zone, Mixed Use Zone or Township Zone, clause 55 must be used by a responsible authority (usually a council) to assess the:

  • construction of a second dwelling if there is at least one dwelling existing on the lot
  • construction of two or more dwellings on a lot
  • extension of a dwelling if there are two or more dwellings on the lot
  • construction or extension of a dwelling on common property
  • construction or extension of a residential building.

When will the deemed to comply standards come into operation?

The deemed to comply standards will be approved on 6 March 2025 and commence operation on 31 March 2025.

How does a deemed to comply assessment work under clause 55?

  • A development must meet all of the applicable objectives contained in clause 55.
  • If a development meets a standard:
    • The corresponding objective is deemed to be met;
    • The responsible authority is not required to consider the corresponding decision guidelines.
  • If a development does not meet a standard, the responsible authority must consider the applicable decision guidelines in determining whether the corresponding objective is met.

If an application meets certain requirements, the planning application cannot be refused on the basis of that requirement.

When a standard is met, the council is not required to consider any other policy or decision guideline in the planning scheme and specified matters under section 60 of the P&E Act.

New exemption for third party review (VCAT appeal)

A council must decide whether to advertise a development proposal to neighbours and the community (notice is required for most permit applications). People may make an objection or submission to the council.

Where all the applicable standards are met, there will be no third party right of appeal (objector appeal).

Applicable standards:

  • 55.02 – All Neighbourhood character standards (street setback, building height, side and rear setback, walls on boundaries, site coverage, access, tree canopy, front fence)
  • 55.04-1 - Daylight to existing windows
  • 55.04-2 - Existing north-facing windows
  • 55.04-3 - Overshadowing secluded open space
  • 55.04-4 - Overlooking
  • 55.05-2 - Overshadowing domestic solar energy systems

Neighbourhood character

Clause 55 sets out key neighbourhood character standards for:

  • street setback
  • building height
  • side and rear setbacks
  • walls on boundaries
  • site coverage
  • access
  • tree canopy
  • front fences

If the standard is met it meets the objective.

If the standard is not met, council is able to assess the alternative design solution against any relevant neighbourhood character objective, policy or statement set out in the scheme.

What happens if my applications is lodged before 6 March 2025?

Applications lodged before 6 March 2025 will continue to be assessed by the council using clause 55, as it existed before 6 March 2025.

People who objected and applicants who applied under these rules will continue to have the council assess the application using these rules, including rights to object and appeal to the proposed development. VCAT will also be required to assess the proposed development under the old rules.

What if I have an existing planning permit and wish to amend it?

If the original permit application was lodged before VC267 came into operation, any application for an amendment of a permit under section 72 of the Act, must be assessed under the clause 55 provisions as they existed before 6 March 2025.

Designing Better Medium Density Housing provides best practice guidance on the applying the deemed to comply standards.

Please note: an accessible version of the Designing better medium density housing in Victoria document will be published on the 17 March 2025.

Page last updated: 06/03/25