On 6 March 2025, the planning and development world was shaken up with the approval of Amendment VC267. These new changes are a slice of a bigger Plan for Victoria: part of which is to supply housing for all Victorians. With Amendment VC267 overhauling Clause 55 and introducing Clause 57, we caught up with two of our in-house experts, Sarah Thomas (Associate Director) and Felicity O’Sullivan (Associate), to understand what’s happening and how these changes will affect the development landscape.

So, what exactly IS Amendment VC267, and why has there been so much buzz about it?

Sarah: It’s the beginning of a significant overhaul of Victorian residential planning policy. Instead of adding one or two controls like we saw in 2023, Amendment VC267 makes wholesale changes. It will influence the way residential development unfolds, our work as Planners and the potential for our development partners.

Felicity: That’s right. Clause 55 has been split and updated to make way for both the ‘Townhouse and Low-rise Code’ (the updated Clause 55) and the ‘4 Storey Apartment Standards’ (a brand-new clause: Clause 57).

Let’s start with Clause 55. Are things changing now that it’s a code?

Felicity: This is the headline news! It means that all standards within Clause 55 will be assessed as either being ‘deemed to comply’ or not. And when certain standards are met, it removes third party appeal rights, meaning objectors can’t seek review at VCAT.

Sarah: The standards in the code also override any other policy or decision guideline in the planning scheme AND sections 60(1)(b), (e), (f), (1A) and (1B) of the Planning and Environment Act (which requires consideration of significant effects, strategic plans and objectors) and sections 84B(2)(b) to (jb) of the Act. By turning off other policy and decision guidelines, it removes subjectivity from decision-making.

What’s the point of codifying Clause 55?

Felicity: It aims to reduce timeframes for assessing residential planning permit applications, and it removes uncertainty about third party appeal rights where a development meets all the relevant standards.

Sarah: It’s part of the bigger picture to deliver more housing in Victoria – a goal we’re all very familiar with these days!

So, if a development meets the standards, a permit will issue. Are there ANY exceptions?

Felicity: Only if there are other applicable permit requirements that trigger third party appeal rights, such as a heritage overlay.

Sarah: And the code only applies to the General Residential Zone, Residential Growth Zone, Mixed Use Zone, Township Zone, Neighbourhood Residential Zone and the soon-to-be-applied Housing Choice and Transport Zone.

Let’s talk about the brand-new ‘4 Storey Apartment Standards’, or clause 57…

Felicity: It applies to (you guessed it) 4 storey residential development in a residential zone. While it contains the same structure, objectives and standards as the revised Clause 55, it’s not codified. So, there are no ‘deemed to comply’ standards – meaning it will retain a merit-based assessment procedure and third party appeal rights.

Sarah: Clause 57 introduces several new standards aimed at modernising residential development. It encompasses objectives such as setbacks, north-facing windows, overshadowing secluded open space, solar energy and solar access.

When do the new controls come into effect?

Sarah: They were gazetted on 6 March 2025 and will apply to relevant applications lodged on or after 31 March 2025. Applications submitted before 6 March (or amendments to existing permits from before that date), will not be assessed under these controls.  

Felicity: But there are options to amend any current ‘live’ applications so that you can benefit from the new controls. You could withdraw and relodge your application, or amend it via section 50 or 57a of the Planning and Environment Act.

Time for the million-dollar question… do you think Amendment VC267 will simplify the planning process?

Sarah: Both clauses aim to identify clear standards, and they both remove the more subjective ‘neighbourhood character’ standards. So, we hope to see less ambiguity in the assessment process. These statewide standards also have limited scope for variation – and we understand that the Department of Transport and Planning will work to remove inconsistencies across different planning schemes.

Felicity: While we will only know when it comes to the practical application of the reforms, it’s reassuring to see the Victorian Government reforming residential assessment. We’re excited for an outcome that will reduce uncertainty and delays in the planning process.

UPco is actively seeking further information and direction from the Department of Transport and Planning, and we’ll keep you updated as we learn more. If you have any questions about Amendment VC267 and what it means for your development, we’d love to hear from you. Drop us a line at info@upco.com.au

Here’s a quick reference guide of the changes to Clause 55.

Changes to Clause 55 (Townhouse and Low-rise Code)
New standardChanges
Neighbourhood character
B2-1 Street setbackReduced front setback from 9m to 6m. No longer the average of the two adjoining. The standard takes the lesser setback of a dwelling on an abutting allotment.
B2-2 Building heightNo change.
B2-3 Side and rear setbacksThe ability to choose from two side and rear setback options: existing B17 side and rear setback standard; or a new side and rear setback standard. From the north boundary set back 3m up to a building height of 11m and 4.5m for a building height over 11m and from the south boundary set back 6m up to a building height of 11m and 9m for a height over 11 metres.
B2-4 Walls on boundariesNo change.
B2-5 Site coverageChange from 60% in all residential zones to: 60% – Neighbourhood Residential Zone & Township Zone 65% – General Residential Zone 70% – Residential Growth Zone, Mixed Use Zone and Housing Choice and Transport Zone.
B2-6 AccessNew requirement to protect existing street trees by requiring the location of a vehicle crossover or accessway to not encroach the tree protection zone of any tree in a road by more than 10%.
B2-7 Tree CanopyFormerly B13 Landscaping. New tree canopy cover requirement of 10% site area up to 1000m2 and 20% of site area more than 1000m2. Existing trees can be used to meet the requirement.
B2-8 Front fenceNo change.
Liveability
B3-1 Dwelling diversityRequires development with more than 10 dwellings to provide a diversity of housing by providing: One dwelling that contains a kitchen, bath or shower, bedroom and a toilet and wash basin at ground floor level for every 10 dwellings. One dwelling that includes no more and no less than 2 bedrooms for every 10 dwellings. One dwelling that includes no more and no less than 3 bedrooms for every 10 dwellings.
B3-2 Parking locationLimited change with same metrics.
B3-3 Street integrationStandard simplified and made deemed to comply with elements from existing standards B5 Integration with the street, B12 Safety, B31 Design detail and B34 Site services.
B3-4 EntryStandard simplified and made deemed to comply with elements from existing standards B26 Dwelling entry, B12 Safety and B25 Accessibility.
B3-5 Private open spaceReduced from 40m2 to 25m2 at ground level.
B3-6 Solar access to open spaceNo change.
B3-7 Functional layoutApplies the minimum apartment bedroom and living room dimensions to all dwellings.
B3-8 Room depthApplies the minimum apartment room depth requirements to all dwellings.
B3-9 Daylight to new windowsNo change.
B3-10 Natural ventilationApplies the apartment natural ventilation requirements to all dwellings.
B3-11 StorageNo change.
B3-12 Accessibility for apartment developmentsNo change.
External amenity
B4-1 Daylight to existing windowsNo change.
B4-2 Existing north-facing windowsNo change.
B4-3 Overshadowing secluded open spaceReduces allowable overshadowing to 50%.
B4-4 OverlookingStandard to no longer apply to bedrooms.
B4-5 Internal viewsChanges standard to no longer apply to bedrooms.
Sustainability
B5-1 Permeability and stormwater managementUpdated to refer to the performance objectives in the Urban stormwater management guidance (EPA Publication 1739.1, 2021).
B5-2 Overshadowing domestic solar energy systemsNew ESD standard to protect existing rooftop solar from overshadowing.
B5-3 Rooftop solar energy generation areaNew ESD standard to provide area for rooftop solar energy generation.
B5-4 Solar protection to new north-facing windowsNew ESD standard to provide shading to north facing windows for summer heat.
B5-5 Waste and recyclingNew ESD standard to require: An internal waste and recycling storage space of at least 0.07 cubic metres with a minimum depth of 250 millimetres. Minimum individual and shared bin storage areas for all dwellings.
B5-6 Noise impactsAmended to minimise the impact of mechanical plant noise located in the development.
B5-7 Energy efficiency for apartment developmentsNo change.
View all articles