Streamlining subdivisions opens doors to more homes
We’ve reviewed how our planning and building system works to make it easier to subdivide a block into two lots – so you can build two new home or build a second home in unused space on your lot.
Subdividing land previously took too long and discouraged home building, so the Department of Transport and Planning investigated how approvals can be fast-tracked – while maintaining standards to ensure Victorians can rely on a good quality home.
What changes have been made to the planning system?
The Department of Transport and Planning is undertaking an implementation review into how to fix the current system.
Consultation is being undertaken with industry before final options are considered, with aim of implementing reforms in 2025.
On 16 October 2025, Amendment VC288 introduced changes to the Victoria Planning Provisions and all planning schemes to allow planning applications for two homes on a lot to use VicSmart, our simple and fast planning permit process for eligible applications.
If a planning application meets all the relevant planning rules it can be assessed via VicSmart, and can receive approval within 10 business days. This saves applicants from the standard statutory timeframe of 60 days plus potential delays. Because the requirements are met upfront, under VicSmart there’s no need to notify neighbours.
Development will still have to adhere to strong existing requirements to make sure new homes are high quality and suit the neighbourhood. If other planning controls apply like heritage or flooding controls, the application may not be eligible for VicSmart.
Further information about Amendment VC288 can be found at:
Faster approvals for two homes on a lot and subdivisions
Amendment VC288 - Amendments Online
Do I need a permit to subdivide land?
Yes. A planning permit is required to subdivide land.
Find out about Victoria's rules and regulations when subdividing, and how to apply for a permit to subdivide land at Subdivision.
Do I need to subdivide land to build a small second home (granny flat)?
A small second home requires a building permit, to meet site, amenity, design and safety requirements – and cannot be subdivided or separately sold off from the main home.
Learn about requirements for granny flats at: Small second homes.
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