‘Yes in my backyard’: The new planning rules set to reshape Victoria’s neighbourhoods

The state government says these changes are the next step in making Victoria “the townhouse capital”.  

The Victorian state government has announced a set of streamlined planning rules to fast-track approvals for people to subdivide or build a second house on their lot. 

The changes are part of the government’s effort to boost housing supply across the state. 

The new “yes in my backyard” rules, which come into effect from mid-October 2025, apply to Victorians who want to build a second home, replace an existing house with two new ones, or subdivide their block and sell off the land. 

According to the state, these changes will reduce wait times from more than 60 days to 10 business days. They are also expected to save applicants over $2400 in fees. 

The state government said it will boost homebuilding in a way that’s “sensitive to every street” with a system that allows Victorians to say “yes in my backyard” – literally.  

“I want to get millennials into homes – and so many people in their 30s are looking at new townhouses and homes on subdivided blocks that have a couple of bedrooms and space for the kids to run around. It works for them,” Victorian premier Jacinta Allan said. 

Victorian minister for planning Sonya Kilkenny said the changes will boost housing supply for all kinds of property buyers, from first-home buyers to downsizers. 

“These changes will boost housing supply in a way that’s sensitive to every street, whether you’re building a second home for your children or selling off your backyard to help someone else buy theirs,” Ms Kilkenny said. 

“For many people, the biggest housing opportunity is right behind them – in their own backyard. That’s an opportunity for someone else, too – a young family, a first home buyer or a downsizer.”

Criteria will still need to be met to receive fast-tracked approval, with proposals needing to comply with siting, privacy and design standards. 

The announcement comes after a series of amendments to streamline approvals for different housing types. 

The state’s plan to make Victoria the “townhouse capital” saw legislators introduce the Townhouse and Low-Rise Code in February 2025, which is intended to streamline approvals of new homes up to three storeys high. 

In August, the state government also introduced the Single Home Code, to boost approval for single homes and small second dwellings on lots under 300 square metres. 

This latest move also follows the state government’s reform to allow small second homes, such as granny flats, to be built without a planning permit. 

According to the government, in the time since that change was introduced in December 2023, more than 500 small second homes have been approved. 

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