More homes mean more opportunity

The Victorian Government has announced it will deliver 50 new 'Train and Tram Zone' Activity Centres at public transport stations that will deliver more homes for young people, families and downsizers in Melbourne's inner suburbs.

An expansion of the Government's Activity Centre program, the 50 new Activity Centres will encourage more than 300,000 additional homes around Melbourne's high-frequency train lines by 2051.

Locations

The Government has announced the first 25 of these centres, located close to stations that will benefit from the Metro Tunnel and the well-serviced Frankston, Sandringham, Lilydale and Glen Waverley Lines. This includes:

• The future Sunbury to Cranbourne/Pakenham Line using the new Metro Tunnel: Carnegie, Hughesdale, Murrumbeena, Oakleigh, Middle Footscray, West Footscray and Tottenham Stations.
• Lilydale Line: Hawthorn, Glenferrie, Auburn, Blackburn, Nunawading and Mitcham Stations.
• Frankston Line: Toorak, Hawksburn, Armadale and Malvern Stations - plus Toorak Village on the Route 58 tram.
• Sandringham Line: North Brighton, Middle Brighton, Hampton and Sandringham Stations.
• Glen Waverley Line: Tooronga Station, Darling Station, plus a combined centre covering both Gardiner and Glen Iris Stations.

The locations for the remaining 25 of 50 'Train and Tram Zone' Activity Centres will be announced in late 2024 with the release of Plan For Victoria.

The locations of the Activity Centres were recommended by the Department of Transport and Planning based on an analysis of transport capacity, access to jobs and services, and environmental considerations.

Activity Centres will be tailored at a local level, with Government working with local communities and councils to progressively shape and introduce new planning controls.

Both Toorak Village and Middle Footscray are classified as smaller 'neighbourhood' Activity Centres to guide more modest growth.

The first 25 Activity Centres will be delivered in 2 tranches over the next 12 months, with timelines to be communicated clearly.

The process for all 50 new Activity Centres is expected to be complete by 2026.

More about Activity Centres

Activity Centre planning is about building more opportunities and better communities by setting clear expectations for long-term growth, giving the community a say early, and streamlining planning to unblock home building.

Through this program of 50 new Activity Centres, the vision is for taller buildings in the immediate 'core' where the train station and built-up commercial centre is located.

In areas where the train station is very residential, the core could be very small, with more modest height limits compared to larger stations.

In the walkable 'catchments' up to 800 metres surrounding the core, the vision is for gentler, scaled height limits and more low-rise apartments and townhouses alongside existing homes.

The change in these catchments will be sensitive and incremental, occurring over time. An engagement and planning process will ensure it is tailored and appropriate for each community.

This program will not alter the rights of residents in the catchment areas to have their say and to appeal.

Heritage and landscape overlays will stay in place, and how it works in every community will be designed in consultation with locals.

This process will take time and opportunities to have a say will be communicated widely.

Learn more

The 50 new Activity Centres add to the 10 initial Activity Centres, which are located in Broadmeadows, Camberwell, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood.

To learn more about the Activity Centre program and the progress of the 10 initial Activity Centres currently being planned, visit Engage Victoria - Activity Centres

The Victorian Government is slashing stamp duty on off-the-plan apartments, units and townhouses to cut upfront costs, speed-up building, and make it more affordable for everyone to buy off-the-plan.

Currently, first home buyers and owner-occupiers can access a stamp duty concession when they buy off-the-plan, allowing construction costs to be deducted from the sale price when calculating how much stamp duty they owe.

This is currently capped for first home buyers and owner-occupiers: to access the concession, the reduced value for stamp duty calculations following the deduction of construction costs must be under thresholds of $750,000 for first home buyers and $550,000 for owner occupiers - otherwise the concession isn't available.

Under a change that will boost housing construction:

• Anyone buying an apartment, unit or townhouse off-the-plan can claim the concession - not just first home buyers and owner-occupiers.
• Thresholds will be removed so the concession is available for apartments, units and townhouses of any value.

The 12-month extended concession applies from 21 October 2024, and it will allow a 100 per cent deduction of outstanding construction and refurbishment costs when determining how much stamp duty is owed.

The existing concession will continue to apply during and after this 12-month extension.

How much will a buyer save?

The amount you save depends on how much construction has occurred. Generally, someone buying an apartment off-the-plan is likely to pay about a quarter of the stamp duty they would pay without the off-the-plan concession.

A Victorian using this concession who buys off-the-plan before any construction work starts could pay around $28,000 less stamp duty on a $620,000 apartment - with duty slashed from around $32,000 to around $4,000.

This is an extension of an existing concession. To read more about the range of concessions available to buyers and how they are calculated, visit State Revenue Office - Off-the-plan duty concession.

What properties are eligible?

An eligible apartment, unit or townhouse is one that is in a strata subdivision - meaning they retain common property such as a driveway or a shared hallway.

House and land packages or other dwellings that are not part of a strata subdivision are not eligible for the extended concession, but first home buyers and owner occupiers can still use the existing concession on these properties.

The Victorian Government is creating a fairer system for property developers to contribute to funding for local infrastructure, parks and services in the areas where they build more homes.

Under the plan, communities that build more homes will receive more funding for the things they need, including:

• roads, paths and public transport
• new and upgraded schools
• upgraded health and community facilities
• parks, playgrounds, sport and recreation spaces, and more.

The Victorian Government will work with key members of its Housing Affordability Partnership to deliver a statewide developer contributions model, linking more homes with more infrastructure.

While this work is being delivered, the Victorian Government will introduce a new pilot developer contribution system in the first 10 pilot Activity Centres across Melbourne, where more homes will be delivered near transport, jobs and services.

The Victorian Government has also announced a new $150 million round of the existing Growth Area Infrastructure Contributions funding for 7 of Melbourne's fastest growing council areas.

Statewide developer contributions for local infrastructure, parks and services

Developers already contribute to the community through a system of developer contributions, paid to councils or the state.

Currently, 43 of 79 councils collect developer contributions in different ways, and there are 133 separate developer contributions in place across the state.

While this system has delivered a lot of local benefits, it’s not in the right areas and with the administrative burden adding further delays. Ultimately, it just isn’t doing the job of providing more infrastructure funding to growing suburbs.

The Victorian Government will work with key members of its Housing Affordability Partnership – the Property Council of Australia, Urban Development Institute of Australia, Housing Industry Association, Master Builders Victoria and Assemble – to deliver an approach to statewide developer contributions.

The industry working group will meet from November 2024, looking at models for change to find one that works for industry, councils, Government, and communities.

It will report back in March 2025 with options that help Victoria’s suburbs grow sustainably, by delivering community infrastructure alongside new home projects.

Starting in 10 activity centres

While this long-term statewide reform is being designed and implemented, the Government will introduce a simpler developer contribution pilot in 10 busy areas close to jobs, transport and services where more homes are coming under the Government’s Activity Centre program.

This contribution will support the growing communities of Broadmeadows, Camberwell, Chadstone, Epping, Frankston, Moorabbin, Niddrie, North Essendon, Preston and Ringwood.

Though the scheme, every home in every housing project in these communities will directly result in more funding for local infrastructure – from new roads to schools, to upgraded health services and community spaces.

The Department of Transport and Planning will advise on lists of infrastructure needs in each of these communities, where 60,000 additional homes can be delivered through the Activity Centre program by 2051.

The Activity Centre contributions will start on 1 January 2027, giving Government the time to consult and industry time to prepare.

The change will deliver more funding for local infrastructure in these centres while Government and industry work on a long-term statewide system.

New Growth Area Infrastructure Contributions round

Later this year, the Victorian Government will open a new $150 million round of Growth Area Infrastructure Contributions (GAIC) funding for communities in Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea, and Wyndham.

Through this scheme, developers contribute to funding for important infrastructure projects in some of our city's fastest-growing communities.

The latest $150 million GAIC round will focus primarily on transport, like buses, services, stations, interchanges, intersections, roads, bike paths and walking paths.

Successful projects and final funding amounts will be confirmed and announced in 2025.

Read more about the Victorian Government's plan to deliver more infrastructure funding where more homes are getting built.

The Victorian Government is delivering Victoria’s longest ever pipeline of new land for new homes and backyards.

The government has released a landmark plan for 27 new greenfield areas across Melbourne’s outer south-east, north, and west to be released over the next 10 years.

The pipeline of available land provides concrete timelines for industry and community about when the 27 new planning processes will commence, while also giving developers the confidence to invest early and get shovels in the ground sooner.

The government will also streamline the planning system, providing even more certainty for home builders.

From 2025, the Victorian Planning Authority will be integrated with the Department of Transport and Planning, bringing planning processes together to cut delays and deliver faster and better structure planning.

A new and dedicated concierge service will also be offered to work with councils and industry.

A decade-long plan for Melbourne's Greenfields

The Victorian Government has released A Ten-Year Plan for Melbourne's Greenfields – a decade-long plan for the release of 27 new greenfield areas – committing to providing the space and completing the planning work to deliver 180,000 new homes over the decade.

The first three greenfield plans set to be released in 2024-25 include:

• Northern Freight Precinct, an employment precinct in Whittlesea Council
• Cardinia Creek South Part 2, a residential precinct in Cardinia Council
• Kororoit Part 2, the western corridor within Melton Council adjacent to Caroline Springs

These build on the seven Metropolitan Melbourne greenfield plans under preparation as part of the Victorian Planning Authority’s workplan.

The structure planning process will ensure these areas are ready for development, with the release of unzoned land sequenced to align with the rollout of infrastructure – ensuring that new communities are liveable, green and adequately serviced.

The plan reinforces Victoria’s strategy to ensure 30 per cent of new housing growth goes in outer-suburban and greenfield areas, with 70 per cent going in established suburbs close to jobs, transport and services - giving Victorians more choice about where they live.

All up, the 10-year plan represents the longest ever pipeline of new land in greenfield areas, so growing families can have more opportunities for a home, backyard and community.

Helping builders get on with it

The government will also improve the planning system so builders can get on with building.

From 1 January 2025, the Victorian Planning Authority will be integrated with the Department of Transport and Planning.

It means, for the first time, the four major components of Victoria’s planning system – strategic, transport, statutory and spatial – will be working together to cut delays and duplication and deliver faster and better structure planning.

The government will also offer a dedicated concierge service to work with councils and industry to identify, intervene and fix the issues that are preventing zoned land from being developed.

Government will also review several existing greenfield Precinct Structure Plans (PSPs) that are not yet fully developed to understand opportunities for increasing the number and types of homes where there is sufficient planned infrastructure.

The Victorian Government is also creating more opportunity by unlocking surplus government-owned sites. The government will deliver new land for more homes by:

• unlocking additional surplus government land near trains for more homes, in Oakleigh and Footscray. The VicTrack land will be released to market, with an Expression of Interest (EOI) process to explore commercial partnerships that boost the number of homes on these surplus land sites
• progressing more housing projects in Alphington, Coburg, Malvern and Preston
• offering a second round of the Small Sites program, with the release of a further ten surplus sites for more homes across the state
• kickstarting work on a Request for Proposal process for the mega home project in Arden, where 20,000 people will live 2km from the CBD on the doorstep of the Metro Tunnel.

Through unlocking and rezoning surplus government land, the government will deliver around 9,000 homes across 45 sites in both metropolitan Melbourne and regional Victoria.

The Victorian Government is delivering more protections for Victorian home buyers – replacing the Victorian Building Authority with a new more powerful watchdog.

The new Building and Plumbing Commission will oversee building and plumbing industries across the state, with tough new powers to protect Victorian families – and their homes. These powers include:

• directing builders to fix substandard work before and after occupants move in. The Victorian Government will work with industry to define the eligible time period
• preventing apartments with serious defects from being sold
• increased reporting requirements before occupancy certificates are signed off on new builds.

The watchdog will be resourced with new boots on the ground, with a 50 per cent increase in auditors and front-line inspectors, as part of a $63.3 million investment in this year’s Budget.

The watchdog will also be tasked with leading an inspection blitz, including a crackdown on unregistered building and plumbing work.

Victorians will have better access to insurance if things go wrong – eliminating the need for complex and costly legal claims against builders who do the wrong thing.

Apartment buyers will also have stronger financial protection, with developers required to provide a bond to cover the cost of fixing poor work for buildings over three storeys. The new bond will be the first step towards introducing a new 10-year insurance product for apartment buildings, with next steps to be developed in consultation with an industry working group.

Further changes will be made to dispute resolution processes as part of the transition to the Building and Plumbing Commission, creating more certainty for Victorians and industry, and more streamlined pathways to resolve disputes.

The Victorian Government is also working with industry and consumer groups on reforms to ensure the rules around domestic building contracts are clear and fair, with legislative change expected in 2025.

The Victorian Government is backing more homes and more opportunities across our state - including in regional Victoria.

This includes making sure more Victorians have the dignity of a roof over their head.

Social and affordable housing

Through its $1 billion Regional Housing Fund, the government will deliver 1,300 social and affordable homes right across Victoria. The government has announced the locations for the first 1,000 homes:

• 68 homes in Mallee
• 98 homes in Wimmera South-West
• 162 homes in Loddon
• 34 homes in Central Highlands
• 238 homes in Barwon
• 140 homes in Goulburn
• 110 homes in Ovens Murray
• 65 homes in Outer Gippsland
• 110 homes in Inner Gippsland.

Work is well underway, with at least 180 new and upgraded homes already completed. More projects and locations will be announced as future programs are finalised.

More than 3,400 homes are already completed or underway in regional Victoria, as part of capital projects, including the Big Housing Build and the Regional Housing Fund.

Support for councils to build new homes

The government has also announced it will contribute $500,000 towards a Regional Planner Cadetship Program. The program has been developed to support new planners to enter the rural and regional local government workforce, directly addressing a state shortage of planners that is slowing planning processes – and slowing down new homes.

The government is also delivering a Regional Planning Hubs program which places planning experts in regional and rural councils to support the planning and development of their local community.

These initiatives – in addition to the introduction of a statewide property developer contribution, including in regional Victoria – are all about making processes faster, making communities better, and building homes sooner.

The Victorian Government is making it easier and faster for Victorians to divide their blocks and build more homes.

The government is undertaking an implementation review into how to fix the current system, where subdivisions take too long and often discourage home building.

The review won't inform government whether to proceed – it has decided to. This is a review to outline the best way forward.

The review will examine how our planning and building systems can be streamlined, enabling more Victorians to add a second home, build two new homes, or subdivide a block into two lots.

As part of the review, the Department of Transport and Planning will look at how approvals can be fast-tracked – while maintaining standards to ensure Victorians can rely on a good quality home.

Clear limits will remain in place when it comes to things important to the community like trees and car parks, and overlays permit requirements (such as in flood or heritage overlays) will still apply.

The government will consult with industry on the changes, considering final options with the aim of implementing the reforms by April next year.

The move follows the government's change to regulations introduced in 2023, allowing homeowners to build small second homes, such as granny flats, without a planning permit.

The Victorian Government is recognising and rewarding the next generation of great Victorian architecture, encouraging more well-designed homes built to last.

The government's plan will back more townhouses and apartments that stand the test of time in quality, design, aesthetics and sustainability – implementing a new design fast-track pathway, and expanding its State Design Book of ‘future homes’.

Importantly, it'll mean more Victorians are living in homes that look great on the outside – and feel solid as a rock on the inside.

Great Design Fast Track pathway

The government will introduce a new, fast-tracked pathway for buildings with homes that meet the test of build quality, design and sustainability – ensuring developers can build better homes without the additional costs and delays associated with projects that might look a bit ‘different from the norm’.

The Great Design Fast Track will focus on townhouse and apartment projects of three to six storeys in height and is intended to apply statewide. The fast track will work in a similar way to the current Development Facilitation Pathway (DFP), which exists for more significant housing projects. As with the current DFP, locals would retain the right to know what’s going on and have their say.

Through this fast track pathway, Victoria can give a stronger arm to architects and developers who put in an effort and take on more personal risk by building projects that look great and add lasting value to streets and communities.

The Minister for Planning will begin work to develop the accelerated pathway, giving confidence to architects, developers and Victorians.

State Design Book

The government will also expand its State Design Book of ‘future homes’ – projects that are planned on paper alongside artists’ impressions but don’t yet exist – by welcoming the best examples of good, affordable designs that are already in the ground, home to Victorians and loved by locals.

The book will be made more useful through the inclusion of high-quality developments that are already complete – at a scale up to 6 storeys – with designs required to encourage sustainable, family friendly and accessible homes, with communal spaces and gardens.

Victorians also be able to have their say, with the public encouraged to nominate great buildings they live in or love – which they think meet the good design criteria and deserve to be replicated across the state.

The government will also help to get these well-designed buildings off the ground by securing government-owned land for innovative ‘demonstration’ developments.

The developments will have to demonstrate high quality design, liveability and sustainability, including modern methods of construction – and be made open to the Victorian public to experience.

These demonstrator buildings will then be made available to become homes for Victorians to buy or rent.

The Victorian Government will launch Pick My Park, a program that will create and upgrade more green spaces in growing suburbs – with $30 million in projects chosen by Victorians.

Pick My Park will let Victorians aged 16 and over propose ideas for new parks or park upgrades in their growing community and then submit them to the public for their vote. Council and organisations can also submit ideas.

The most popular ideas will get a grant to deliver the local project. Grants will open next year and range from $20,000 to $250,000, available in two streams:

• Park upgrades: focusing on improving existing parks and open spaces.
• New urban parks: focusing on transforming under-utilised land in growing urban areas into new green, open spaces for the whole community to enjoy.

Geographical quotas will apply so all growing areas share in funding, and a set portion of the funding pool will be reserved for growing urban areas in regional Victoria.

All projects will need the support of landowners, such as the local council, to proceed. Final program guidelines will be released ahead of submissions opening next year.