Victorian planning zone reforms announced

In a Press Release issued today, Minister for Planning Matthew Guy MLC has announced the release of "sweeping reforms" to Victoria's planning zones. These reforms are aimed at boosting productivity and returning planning certainty, something Matthew Guy claims has been "sorely missing for the past decade".

Significant aspects of the proposed reforms include –

• The replacement of the five existing Business zones with two new Commercial zones;
• Rural zone reforms aimed at attracting and retaining population in rural Victoria; and
• Three new residential zones.

Business

All Business zones will be replaced by Commercial zones. Business 1, 2 and 5 zones will become Commercial zone 1 – aimed at mixed use retail, commercial and higher density residential development. Business 3 and 4 zones will be consolidated into Commercial zone 2 – focused on commercial and light industry uses.

The proposed reforms will open up development within commercial zones, meaning the retail industry should see an increase in competition. Hall & Wilcox planning partner, Natalie Bannister, said "the reform heralds a significant shake-up in the retail industry; the conventional retail hierarchy which safeguarded big retailers is being sacrificed to a model that promotes competition and diversity. We are certain to see some significant changes in our high streets as a result."

Many of the existing barriers to new entrants of the retail sector will be removed, with development in commercial areas encouraged. Changes proposed include the removal of floorspace caps on office and retail uses, and the ability to locate a greater variety of uses in commercial zones. The new controls propose to permit smaller supermarkets to locate in Commercial 2 zones and the Industrial 3 zone.

The new Commercial zones are in response to recommendations from the Productivity Commission, which emphasised the negative effect that excessive regulation can have on business flexibility. A broader variety of mixed uses will be permitted in commercial areas, which will allow "increased employment density in our suburbs", according to Mr Guy.

Rural

Farming communities will see greater flexibility for land management by rural and regional Councils. The reforms remove the "top down state government direction" and allow Councils greater autonomy. While the 40 hectare minimum lot size remains, Councils may vary it at their discretion.

Agriculture will also be promoted in Melbourne's Green Wedge areas by removing the need for planning permits for agricultural activities.

Residential

Those with residential properties will see three new residential zones on offer: a 'Neighbourhood Residential Zone' (NRZ); a 'General Residential Zone' (GRZ); and a 'Residential Growth Zone' (RGZ). Significantly, all of these zones are at the discretion of local councils.

For developers, the NRZ will be the "strongest residential protection zone offered in...Victoria" according to Mr Guy. Mandatory height controls, stricter subdivision regulation and minimum lot sizes will be imposed if your Council adopts the zone.

Complementing the NRZ are the GRZ and RGZ, which support, rather than restrict development of medium and higher density housing in appropriate locations, which may result in planning permits being more readily issued. The proposed reforms will be issued for feedback from Monday 17 July to Friday 21 September 2011.

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