Planning and Environment Act 1987

Executive summary of update

This update introduces significant procedural reforms to the planning system, primarily through the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025. The most critical change is the complete overhaul of the planning scheme amendment process for municipal councils, introducing a new mandatory authorisation framework under Part 3, Division 1AA. This replaces the previous process in Sections 8A-8D.

Furthermore, new rules in Part 4 (Sections 48A-48D) allow responsible authorities to declare incomplete permit applications void, creating a new risk of project delays. The update also enhances enforcement powers by introducing orders to prohibit development on sites where heritage buildings have been unlawfully demolished (Part 6, Division 2A). Finally, processes for panels and the Tribunal are streamlined to allow for more active case management, including treating similar submissions as a group.

Impacted parties

This update broadly impacts all stakeholders involved in the planning process, but most significantly alters the operational procedures for project managers, legal teams, and planning consultants who engage with municipal councils on permit applications and scheme amendments.

Change Analysis

Overhaul of Planning Scheme Amendment Authorisation

A new Division 1AA of Part 3 (Sections 16A-16N) replaces the previous framework under Sections 8A-8D for how municipal councils prepare planning scheme amendments. Councils must now formally apply to the Minister for authorisation before preparing an amendment. The process includes new steps for persons requesting an amendment (Section 16A), council decision-making on such requests (Section 16B), and Ministerial review. A key introduction is the concept of “low-impact amendments” (Section 16N), which may follow a simplified process under Section 23A, bypassing the need for a panel hearing. This new, more structured front-end process aims to filter and manage amendment proposals more effectively before they enter the formal exhibition stage.

New Procedures for Incomplete Permit Applications

New Sections 48A, 48B, 48C, and 48D in Part 4 introduce a formal process for responsible authorities to manage incomplete permit applications. An authority can now issue a notice specifying missing fees or information (Section 48A). If the applicant fails to provide the required items by the specified date, the application is automatically rendered void and of no effect (Section 48B). This formalises the process for rejecting incomplete applications, shifting the onus onto applicants to ensure full compliance at the time of lodgement to avoid automatic rejection and the need to re-lodge. This change is complemented by new Ministerial guidelines on “material detriment” for determining notice requirements under Section 52A.

Enhanced Enforcement and Compensation Framework

A new Division 2A in Part 6 (Sections 131-132A) introduces a significant new penalty for the unlawful demolition of a heritage building. The Governor in Council may now issue an Order prohibiting any development or use of the land for up to 10 years, except for reconstruction of the heritage building. This renders existing permits void and requires authorities to refuse new ones (Section 132). Additionally, Part 5 has been updated to formalise compensation claims, requiring a prescribed form and evidence (Section 99A), and introduces provisions for the payment of interest on compensation awarded by the Tribunal or Supreme Court (Sections 104B, 104C).

Streamlining of Panel and Tribunal Processes

Significant changes to Part 8 and Part 4 aim to make panel and Tribunal hearings more efficient. Panels can now decide to treat multiple “like submissions” as a single submission and appoint a lead submitter (Sections 158C-158E). Panels also have the discretion to consider matters entirely on the basis of documents without a physical hearing, provided no major policy issue is raised (Sections 158F, 158G). Furthermore, panels can now direct expert witnesses to confer and prepare joint reports (Section 159A). A new Division 3A in Part 4 (Section 94A) grants the Tribunal similar active case management powers to control proceedings, limit submissions, and summarily dismiss meritless claims.

Corrective and preventive actions

• Legal

  • Section 16A-16N: Update all advice and templates for planning scheme amendment requests to align with the new authorisation process under Part 3, Division 1AA.
  • Sections 48A-48D: Review and update advice to clients on the critical importance of lodging complete permit applications to avoid them being declared void.
  • Sections 131-132A: Advise clients with heritage-listed properties of the severe new penalties for unlawful demolition, including the risk of a multi-year development prohibition.
  • Sections 99A, 104B, 104C: Update procedures and advice for making and managing compensation claims to comply with new form, evidence, and interest calculation requirements.
  • Part 8 & Section 94A: Update litigation and hearing strategies to account for the Tribunal’s and panels’ new active case management powers, including the potential for document-only hearings and grouped submissions.

• Project Management

  • Sections 48A-48D: Implement a mandatory pre-lodgement checklist for all permit applications to ensure 100% compliance with Section 47 requirements and avoid applications being declared void.
  • Sections 16A-16N: Revise project timelines and stakeholder engagement plans for projects requiring planning scheme amendments to factor in the new upfront Ministerial authorisation process.
  • Section 52A: When preparing applications, conduct a preliminary “material detriment” assessment based on the new Ministerial guidelines to anticipate notice requirements and potential objections.
  • Sections 96UA-96UB: For projects in metropolitan Melbourne, assess eligibility for a Metropolitan Planning Levy exemption and incorporate the application process into early-stage project planning.

• Government & Regulatory Affairs

  • Section 16N: Engage with the Minister’s office to understand the criteria and process for classifying amendments as “low-impact” to identify opportunities for expedited approvals.
  • Section 52A: Monitor the development and application of the new Ministerial guidelines on “material detriment” and provide feedback on their practical impact.

• Finance

  • Sections 96UA-96UB: Incorporate the potential for Metropolitan Planning Levy exemptions into project feasibility and budgeting for applicable Melbourne-based projects.
  • Sections 104B-104C: Update financial models for projects involving potential compensation claims to account for the new interest payable on awarded amounts.

Risks & opportunities assessment

• Risks

  • The new requirement for Ministerial authorisation for all council-led planning scheme amendments (Part 3, Division 1AA) could introduce delays and political uncertainty at the very start of the process.
  • The power for responsible authorities to declare incomplete permit applications void (Sections 48A-48B) presents a significant project risk, potentially causing months of delay and requiring complete re-lodgement if not managed meticulously.
  • The severe penalties for unlawful demolition of heritage buildings (Sections 131-132A), including a potential 10-year development ban, create a major financial and reputational risk for developers dealing with heritage sites.

• Opportunities

  • The introduction of “low-impact amendments” (Section 16N) and the associated streamlined process (Section 23A) could significantly reduce time and cost for minor or uncontroversial scheme changes.
  • The new active case management powers for panels and the Tribunal (Section 94A and Part 8) may lead to faster, more focused, and less costly resolution of disputes, particularly where submissions can be grouped or decided on the papers.
  • The formal process for obtaining a Metropolitan Planning Levy exemption certificate (Sections 96UA-96UB) provides a clear pathway to reduce project costs for eligible developments.