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“If Victoria is to meet its share of the National target of 1.2 million homes by 2029 this will require bold leadership to create a regulatory environment free of barriers and constraints that supports fast tracked delivery of new homes.
“Developers must have the ability for innovative apartment design that is not restricted by prescribed metrics such as floor area ratios. Planning codes and policy must be clearly written to provide certainty to the users and planning authorities of the items that are required to be addressed and the available scope for discretion in decision making.
“Floor area ratios as proposed by some stakeholders are an ineffective planning tool that stifle innovative design outcomes and limit a site reaching its full economic potential. Where planning design codes are introduced, these must avoid ad-hoc design standards being applied by induvial local council areas.
“Since 1996 amendment after amendment has been bolted on to the Victorian Planning Provisions making the system cumbersome and unwieldy to administer. HIA therefore welcomes a transparent and robust planning review that will reform Victoria’s planning system to one that is streamlined and results driven to get planning back on track.
“The time it takes to create new lots, be it a two lot infill subdivision or a multi lot subdivision in regional Victoria, is a tell tale sign as to what the system has become.
“In the new lots and land supply space opportunities abound for planning reform. This can range from the issues and constraints legacy and new restrictive covenants are having on the creation of new lots, through to the drawn out life cycle to produce a Precinct Structure Plan (PSP).
“Victoria’s planning system is aging and has become ineffective and cumbersome. The planning rules are in much need of reform with a fresh approach going forward particularly as Victoria’s population looks to surge over the next decade,” concluded Mr Hermon.
In what has been a difficult time for many Victorians, HIA welcomes the package of support measures announced by the Allan and Albanese Governments to support businesses, individuals and communities affected by the recent Victorian bushfires.
“HIA is disappointed that the Victorian government has announced new proposals to further increase property taxes,” stated HIA Executive Director Victoria, Keith Ryan.
HIA says residential builders and trades remain cautious about hiring in 2026. Not due to a lack of housing demand, but because of mounting cost pressures, regulatory hurdles, and persistent skills shortages, according to a survey of small to medium enterprise members.
The Victorian state government has introduced new provisions in Clause 52.06 of planning schemes specifying car parking requirements in new developments.