Victorian Premier to Take Away Council Planning Powers If They Fail to Hit Housing Target

Victoria needs 2.24 million homes by 2051, according to the state government.

The Flemington public housing estate is seen in Melbourne, Australia, on Aug. 26, 2020. Robert Cianflone/Getty Images

Victorian Premier Jacinta Allan has warned councils they could strip them of their planning powers if they do not meet ambitious housing targets.

This comes as the government revealed it will need to 2.24 million new homes by 2051 to maintain the dream of home ownership for young people and workers.

“More homes mean more opportunity—that’s why the Allan Labor Government is setting clear housing targets in every Victorian local government area for councils, government, and industry to deliver over the next 30 years,” the Allan government said.

“But we’ll be clear: if individual councils don’t try to meet these targets, they’ll lose their planning powers.”

The Victorian government has unveiled specific housing targets for every council area in the state to guide local councils.

Melbourne City Council has a target of 119,500 homes by 2051, Mornington Peninsula has a 24,000 target, Stonnington City Council must reach 50,000 new homes, and Maribyrnong City Council has a goal of 48,000 new properties.

The Victorian government said it was up to councils to work together with government and industry to unlock this capacity, “but if councils have no interest in doing so, there will be consequences.”

“It means that if councils don’t start doing the planning work now to meet these targets, the government will intervene and unlock space for more homes—including through rezoning. The minister for planning will also retain her powers to intervene or fast-track development,” the Allan government said.

Allan said the state was in a housing crisis and the status quo was not an option, adding that it was time to shake things up.

“It’s simple—work with us to unlock space for more homes or we’ll do it for you.”

However, Liberal Member for Western Victorian region Bev McArthur described the move as a “power grab” and attempt to shift blame for the housing crisis.

She said the plan was a smokescreen for the government’s tax and planning policies that have driven up the costs of building a home in Victoria.

“Labor has driven up housing costs with excessive taxes, red tape, and bureaucratic roadblocks. Now, instead of taking responsibility, they want to scapegoat local councils,” McArthur said.

McArthur noted 70 councils had just been to the polls in the recent local government election, campaigning on transparency and accountability including planning.

She said Labor want to “dictate planning decisions” from the parliament and ignore local voices and needs.

Further, McArthur said that the private sector is unable deliver the high-rise developments Labor envisions.

“Developers tell me the numbers don’t stack up. Construction costs, union control, CFMEU interference, and unrealistic environmental and land policies mean Labor’s plan is dead on arrival,” she said.

“This government’s densification policy will not fix the housing supply crisis.”

Fast Track Approvals for Smaller Housing Developments

Meanwhile, the Allan government also announced a new townhouse code on Feb. 25 to quickly approve properties of three storeys or less.

The government noted the status quo system was plagued with delay and uncertainty and that too many people trying to build a home in Victoria faced a system that seemed designed to say no.

It also noticed a planning permit takes on average 145 days to assess, stifling new low rise good quality home building.

Allan said homes did not get built when they were lost in a game of “snakes and ladders” in the planning system, so that was why the government was fixing it.

“The status quo isn’t cutting it, and people trying to build homes for young people keep hearing the word ‘no.’ The townhouse code is about a system that says yes,” she said.

Planning Minister Sonya Kilkenny added, “This can reduce planning permit assessment times by at least 60 per cent, in addition to the time saved at VCAT.”

“We believe in good, comfortable, well-designed homes—that’s why we’re codifying them.”

However, Victorian cafe owner Vikki Bye described the plan as “crazy” in a post to Facebook.

“We need spaces. We need farms,” she said.

“An empty piece of land is not always just an empty piece of land. Not much vision past the $$$$ sign in this (and probably most) premiers.”