Victorians could be able to build two homes on a lot without a permit under a planning reform that Jacinta Allan says will make her state the “townhouse capital” of the nation.
Speaking at a Melbourne Press Club event on Thursday, the premier announced the government will launch a review into how the state’s planning and building systems can be streamlined to encourage more Victorians to add a second home, build two new homes or subdivide a block into two lots.
Allan said she hoped it would lead to the construction of more townhouses, which she described as “exactly the sort of homes we need to build”.
“The suburban townhouse is uniquely Australia, and it’s a top choice for people, particularly in their 30s, who are wanting to buy a new home with a few bedrooms, bit of a back yard and a carport that’s not too far out,” she told the event.
“It’s the achievable dream for the modern millennial, and if you’re an owner, it’s a good way to make a bit of money while you’re building a home for someone else.
“I can’t think of too many losers when it comes to building townhouses, and I believe that the community is ready to see more of them.”
Allan said Victoria once allowed property owners to subdivide without a building permit, but this was removed by the Kennett government in 1993 and it has since become a “nightmare” to do.
However, she admitted the old system “wasn’t perfect” and said the new process would ensure trees were protected, flood and heritage overlays still applied and car park requirements remained.
The review will consider three possible changes to the scheme: a fast-tracked process for subdivision approvals, reducing the time frame from 60 days to 10, a criteria-based planning permit exemptions or the scrapping of a planning permit altogether.
Yimby Melbourne project lead, Jonathan O’Brien, called for the latter option.
“There is no reason to require a planning permit for building at gentle densities,” he said.
“If the building permit is approved, it should be a done deal.”
Meanwhile, shadow spokesperson for planning, James Newbury, criticised Allan’s latest announcement as “beyond parody”.
“Instead of announcing a real plan to fast-track minor subdivisions, the premier has announced that she will hit the ground reviewing into what a policy might look like,” he wrote on X.
The government has said it will consult industry, with the intention of introducing the reforms in early 2025.
It’s the sixth housing announcement the government has made in five days, with Allan telling the event she they were all focused on helping millennials achieve home ownership.
“I want to be the premier who gets millennials into homes and I consider that to be the fight of my life.”
