The Victorian Government released a slew of housing announcements last week, from tax and land supply to renters’ rights and building quality. Here’s what you need to know.
Government housing announcements – summary
Activity centres expansion
Fifty new activity centres will be created around existing train stations within the next two years, on top of the 10 being finalised by the end of this year. The first 25 locations have been unveiled and the second 25 will be named towards the end of the year when Plan for Victoria is released.
Off-the-plan duty concessions expansion
The current regime of off-the-plan stamp duty concessions will be expanded for 12 months to be made available to all off-the-plan purchases of apartments, units and townhouses that are in a strata subdivision, from 21 October 2024. A Bill will be introduced to Victorian Parliament this week with the full proposed framework.
Infrastructure contributions reform + GAIC funding
The Victorian Government announced its intent to reform the state’s infrastructure contributions system, with the Property Council to be part of a joint government-industry working group to advise on the preferred reform model. A pilot contributions regime will be implemented for the 10 activity centre locations to commence on 1 January 2027, with details to be confirmed. A new $150 million round of developer funds raised through the Growth Areas Infrastructure Contribution will soon be released for applications.
Unlocking government land
Two new sites near Oakleigh and Footscray train stations will be made available through an EOI process to deliver up to 240 new homes, with 10 per cent to be affordable housing. VicTrack will manage the process and more information will be released shortly. An additional 10 government-owned sites will be released soon as part of the ‘Small Sites Program’, while four bidders have been shortlisted to proceed to an RFP phase for the Arden precinct.
10-year greenfield plan
A 10-year plan for the finalisation of precinct structure plans in greater Melbourne has been confirmed, with the three plans to be released in 2024-25 to be Northern Freight, Cardinia Creek South Part 2 and Kororoit Part 2. The Victorian Planning Authority will remain the responsible agency but will be integrated into the Department of Transport and Planning from 1 January 2025. The greenfield plan also includes a commitment to examine existing precinct structure plans not yet fully developed where more homes can be delivered.
New building regulator
A new building regulator with bolstered powers will be set up in 2025, with the Building and Plumbing Commission to replace the Victorian Building Authority. The new regulator will be given the authority to direct builders to fix substandard work post-occupancy, with a time period to be set following further industry consultation. A developer bond regime is set to be introduced as a lead-in to the establishment of a 10-year insurance product for apartment buildings higher than three storeys.
Speeding up subdivisions
An implementation review is commencing to determine the best way to deliver on a commitment to speed up subdivisions. Implementation options include a 10-day planning process, criteria-based permit exemptions or abolishing the requirement for a permit altogether. Government intends to implement the reforms by April 2025.
Regional Housing Fund commitments
The locations for the first 1000 social and affordable homes to be delivered from the Victorian Government’s Regional Housing Fund have been confirmed, while $500,000 has been committed to set up a Regional Planner Cadetship Program designed to support planners entering the local government workforce in regional Victoria.
Rental Dispute Resolution Victoria establishment
Legislation will be introduced next month to formally set up Rental Dispute Resolution Victoria (RDRV) – originally announced in the government’s housing statement last year – as a dedicated body sitting within VCAT to hear rental disputes. RDRV will be given the power to issue binding orders and can refer matters to Consumer Affairs Victoria for compliance and enforcement. A testing phase for the introduction of a portable bond scheme will kick off next year.
Fast track planning for great design
A new fast tracked planning pathway will be created for three to six storey townhouse and apartment projects featuring quality design, operating similarly to the Development Facilitation Program. The government will finalise a design book by the end of this year of both design concepts and delivered examples of projects, which will also contain best practice principles and guidance.