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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.
HIA provided a submission on the Workers Compensation Legislation Amendment Bill 2025 Inquiry, referred to the Public Accountability and Work Committee.
“Consistent with the recommendations from the Henry Tax Review: Don’t change negative gearing or capital gains tax until supply has been addressed and the purpose of the productivity summit should not be to increase the taxes on housing,” stated HIA Chief Economist, Tim Reardon.
The state government has established the Small Sites Pilot Program to unlock government land for housing development.
“Sales of new detached homes increased by 18.8 per cent in the three months to June 2025 compared to the previous three months,” stated HIA Chief Economist, Tim Reardon.