Andrews government preparing to release ‘surplus’ state land for medium density projects in key locations such as along rail lines

The door is being opened to developers as part of Victoria’s housing overhaul, which is aiming to fast-track building over the next decade.

Planning permits are set to be scrapped for single dwellings on larger blocks and government land will be unlocked for developers if they include a portion of affordable housing, under a plan to build an extra 800,000 new homes over a decade.

The Andrews government is poised to release its landmark Housing Statement on Wednesday, which is expected to include new restrictions on landlords increasing rent, a 7.5 per cent tax on short stay accommodation, and new state-run planning controls for developments around jobs hubs.

As part of the overhaul, the government is prepared to release “surplus” state land for medium density projects in key locations such as along rail lines – as long as they include 10 per cent of social or affordable homes.

State-significant developments worth $50m in metropolitan areas or $15m in regional towns would also be fast-tracked if affordable housing was included, with third party appeals scrapped.

The landmark Housing Statement is set to be released on Wednesday. Picture: iStock

Reforms that have been considered by the government include:

• SCRAPPING planning permits for single-dwellings on larger blocks with no overlays if they meet key standards;

• FAST tracking 3-storey apartment blocks near railway stations if they are based on pre-approved quality designs;

• NEW planning controls for key activity centres that have good transport links;

• THE release of more government land for developers if they include 10 per cent social and affordable housing in plans;

• NO permits required for granny flat or home office buildings on larger blocks.

It is understood the government was considering significantly expanding a state pilot program called Future Homes, which is aimed at streamlining apartment block developments within 400m of a railway station or activity centre.

Developers can choose from four designs that are adapted to specific sites, and are supposed to cut planning approval processes in half.

Planning permits are set to be scrapped for single dwellings on larger blocks. Picture: iStock

The government was considering whether to increase the distance currently used for the program, in order to turbocharge more density based on quality designs.

Some reforms are likely to be controversial, with third party appeals diluted for some developments, and higher density in established suburbs that have train links or major jobs hubs.

A much anticipated tax on short stay accommodation would see a 7.5 per cent levy paid by booking platforms diverted to a dedicated social housing fund, with 25 per cent of that earmarked for regional Victoria.

Stayz senior director of Government & Corporate Affairs, Eacham Curry, said imposing such a levy would be “ill conceived”.

“Imposing a consumer-facing levy on short-term stays that could be as high as 7.5 per cent does not represent the best or most equitable way to address concerns around the impact of Short-Term Accommodation and nor should the Short-Term Accommodation sector be painted as the cause of or solution to the housing crisis Victoria is facing,” Mr Curry said.

“Based on research conducted by ACIL Allen in 2019 on the Economic Contribution of Short-term rental accommodation in Australia, an ill conceived levy of the kind being suggested by the Victorian Government, puts at risk more than $1.5bn in economic benefits to the states and over 9,500 FTEs (full-time equivalent jobs).”

The government has been holding high-level consultations with key stakeholders since last week.

Cabinet met on Tuesday evening to sign off on the housing statement.

New government data predicts Victoria’s population is expected to add 3.5m people by 2051, taking the state’s total to 10.3m.

The forecasts by Victoria in Future 2023 – the official government projection of population and households – includes 8m people across metropolitan Melbourne and 2.3m in regional Victoria.

“Victoria is the fastest growing state in Australia – and we need a planning system that can deliver good planning decisions faster and more effectively,” planning minister Sonya Kilkenny said.

Victoria’s population is expected to reach 10.3m people by 2051. Picture: iStock

“With a growing population, we know we have more to do to meet the growing needs of our state and ensure more Victorians can live where they want to live and closer to jobs, services and transport.”

But Shadow Minister for Home Ownership and Housing Affordability, Jess Wilson, warned against any measure to control, freeze or cap rents.

“It will only mean higher prices, fewer homes and less secure housing,” she said.

“The Premier himself has stated that ‘people will not build housing in a jurisdiction where potentially rents are frozen’.

“Daniel Andrews must listen to his own advice and rule out any rent control measure.

“Instead of further increasing costs and introducing market distorting rent controls, the Andrews Government should be lowering property taxes to encourage new housing supply and reduce barriers to home ownership.”

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