
Announced in February 2025, Victoria State Government introduced a new 'townhouse code' designed to accelerate the approval process for new home buildings up to three stories high. In effect from 1 April 2025, the new Townhouse and Low-Rise Code, is expected to fast-track the approval of residential developments
Premier Allan emphasised the current planning system’s inefficiency, noting that it often causes delays and uncertainty for homebuilders. The process is seen as frustratingly slow, with many applicants spending excessive time navigating an approval system that appears designed to deny progress. According to the Premier, the average planning permit assessment time previously sat at 145 days, well beyond the statutory deadline.
She highlighted the bureaucratic hurdles involved, such as repeated requests for additional information, long notice periods, and appeals. For example, the average VCAT waiting time from lodgement to hearing is 175 days. While this may be suitable for large developments, it is hampering the growth of small, high-quality residential projects that fit well with local communities.
The Townhouse and Low-Rise Code sets out essential standards for developments to ensure they are well-designed and suitable for their neighbourhoods. These include:
Applications that meet these criteria will be "deemed to comply", allowing for fast-tracked approvals. Affected neighbours will be notified and given the chance to provide feedback, but there will be no opportunity for third-party appeals at VCAT. If a proposal doesn't meet the standards, it will undergo the standard planning process, and third-party appeal rights will be preserved.
Projects in areas with additional local planning requirements—such as heritage overlays or flood zones—will still need to comply with these local rules in addition to the new code’s standards.


Developed with input from 148 stakeholders and 61 submissions from local councils, the Townhouse and Low-Rise Code builds on the 14 ResCode standards introduced in 2023. The government is also working on a code for buildings between four and six stories high and is exploring options for its implementation.
Premier Allan also announced plans to rewrite the Planning and Environment Act 1987, which has been criticized for being outdated and overly complex. The government’s goal is to simplify the process and consult with all 79 councils to ensure faster, more efficient housing development. Among the changes being considered are reducing planning delays and addressing the costs associated with rezoning and structure plans.
This initiative is part of a broader effort to make it easier for young people and workers to access housing more quickly and to foster a more streamlined planning and development process in Victoria.
Read more about the new townhouse and low-rise planning code of Victoria at
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The Townhouse and Low-Rise Code is a major reform to Clause 55 of the Victoria Planning Provisions (formerly known as ResCode). It introduces a codified, quantifiable assessment system for multi-dwelling residential developments and apartment buildings up to three storeys, replacing subjective guidelines with measurable standards.
The code applies to:
"Deemed to Comply" means that if a proposed design meets the specified numeric standards in the code:
When an application fully satisfies the quantitative standards of the code, third-party objector appeal rights are substantially limited. If an objective is deemed to be met, council planners can approve the permit without protracted neighbour dispute delays, giving property owners and developers greater certainty.
Site coverage limits are now differentiated based on residential zoning to encourage housing density near amenities:
To balance land efficiency with usable outdoor space, the minimum secluded private open space requirement at ground level has been adjusted from 40 m² down to 25 m², allowing for more efficient site layouts and compact footprints while maintaining functional outdoor areas.
The code introduces specific environmental and landscape benchmarks:
If a project cannot meet a specific numeric standard (for example, due to unusual site topography or boundary constraints), it falls back to a performance-based assessment. The council will evaluate whether the design still achieves the overarching objective using the relevant planning decision guidelines.
While the new code provides a faster pathway, taking full advantage of the higher site coverages, reduced setbacks, and canopy rules requires precision:
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