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Making it easier to subdivide blocks and build new homes

The Victorian Government is making it easier and faster for Victorians to divide their blocks and build more homes.

The government is undertaking an implementation review into how to fix the current system, where subdivisions take too long and often discourage home building.

The review won't inform government whether to proceed – it has decided to. This is a review to outline the best way forward.

The review will examine how our planning and building systems can be streamlined, enabling more Victorians to add a second home, build two new homes, or subdivide a block into two lots.

As part of the review, the Department of Transport and Planning will look at how approvals can be fast-tracked – while maintaining standards to ensure Victorians can rely on a good quality home.

Clear limits will remain in place when it comes to things important to the community like trees and car parks, and overlays permit requirements (such as in flood or heritage overlays) will still apply.

The government will consult with industry on the changes, considering final options with the aim of implementing the reforms by April next year.

The move follows the government's change to regulations introduced in 2023, allowing homeowners to build small second homes, such as granny flats, without a planning permit.

Updated