More than 70 major housing, energy and commercial projects have been approved by the Victorian government, bypassing local councils and sidestepping residents’ objections.
An analysis by The Age has found at least 40 more developments are in the pipeline for ministerial approval through the Development Facilitation Program, which allows Planning Minister Sonya Kilkenny to approve projects regardless of local opposition, including a proposed waste-to-energy-powered office tower in Cremorne.
The property industry has lauded the bolstered ministerial powers as a critical way to accelerate housing supply and investment, but councils are demanding an urgent review and claim there is no evidence it has sped up the construction of new homes.
Projects already approved under the program include an 18-storey, 400-home apartment building in Collingwood, which Yarra City Council had opposed.
Property Council Victoria executive director Cath Evans said the DFP was a “critically important” pathway to accelerate housing approvals and address blockages in development and construction.
“While this has been a positive initiative, there remain significant overall delays in planning approvals and red tape, such as the lengthy wait times many in the industry are facing on essential infrastructure delivery, such as water and power,” she said.
An artist’s impression of a 407-unit apartment development across two towers in Collingwood.
According to the state government, its DFP pathway has approved 4802 homes since the launch of the Housing Statement in September 2023, when then-premier Daniel Andrews set a target of building 800,000 homes in Victoria over the next 10 years.
The government can use the bolstered program to fast-track developments and bypass local councils based on several criteria, including a significant economic contribution, inclusion of affordable housing, or high-quality design and sustainability.
The planning minister can waive mandatory planning scheme requirements such as building heights, and those decisions cannot be challenged at VCAT.
However, Victorian councils have questioned the effectiveness of the scheme and rejected the government’s claims that it has sped up housing approvals.
At its latest state council meeting, the Municipal Association of Victoria asked the state government to urgently review the DFP to provide greater transparency for the community and to ensure councils are compensated for reviews of applications.
Association president Jennifer Anderson said councils were enthusiastic facilitators of affordable and social housing.
“The MAV and councils have not seen any evidence that the state government’s DFP has sped up planning approvals or increased community housing supply, both potential or actually built,” she said.
“Councils are still required to assist the state government in assessing applications approved by the state government’s program, which they are not remunerated for, through providing potential municipal permit conditions.”
Kilkenny said the government’s planning overhaul, including the DFP pathway, was working.
“Victoria continues to approve and build thousands more homes than any other state, and this pathway is one of the ways we’re making sure we get more good-quality homes built sooner,” she said.
“While we’re focused on building homes, Brad Battin’s Liberals block them. These blockers should look young Victorians locked out of the housing market in the eye and tell them why they don’t deserve to have the same opportunities that were afforded to them.”
A controversial twin-tower development on Hoddle Street in Collingwood is among projects Kilkenny recently approved.
The developer first sought planning approval in 2021 for the 18-storey project, which includes more than 400 apartments, retail and public space, but the proposal became the subject of multiple VCAT listings.
The council had argued the project’s height and architectural composition would have an “unacceptable impact” on the surrounding area.
However, the developers last year withdrew their VCAT application and lodged a revised proposal with the minister – the key difference being a commitment to include 10 per cent affordable homes in the development.
Last year, Kilkenny approved a major redevelopment of the former Melbourne University campus on Auburn Road in Hawthorn, a project now under construction that will feature 365 homes in buildings up to eight storeys.
A 16-storey development on Sydney Road in Coburg has also received her approval, set to bring 326 apartments and new commercial space to the precinct.
More than 40 applications are currently awaiting a decision from the minister, including a 13-storey office tower in Cremorne.
The development from Matter House Group on Stephenson Street would include offices, food and drink premises, a recreation facility and a waste-to-energy facility – or anaerobic digester.
Opposition planning spokesman Richard Riordan said local communities should not be shut out of major planning decisions.
“The government is being very selective about where and how it allows projects and when it wants to use its draconian powers,” he said.
“Local councils need to be fed into the system and be actively part of it.”
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.