A target of 800,000 new homes over the next decade has been set as part of the State Government’s major shakeup of the planning system.
Under the Victorian Housing Statement released on 20 September, Premier Daniel Andrews said that a new Affordability Partnership with the property industry would boost supply.
“We’re not building enough houses right now. We have to have more supply.
“More housing supply means lower prices.”
The public-private partnership was signed with the Property Council of Australia, Masters Builders Victoria, the Urban Development Institute of Australia, the Housing Industry Association and Super Housing Partnerships.
Under the changes, developers of $50 million-plus housing projects will be guaranteed a four-month application process if they provide 10 per cent affordable housing.
The Planning Minister would usurp councils as the arbiter in these cases.
The plan also exempts ‘granny flats’, shed extensions and car ports from planning permits.
Mr Andrews said the aim was for “good decisions made faster” and to “clear the backlog” of 1400 planning applications “gathering dust” with councils for more than six months.
Cheaper housing “near to where you work” was a priority – announcing 60,000 homes to be built at 10 activity centres including Moorabbin, Frankston, Chadstone and Ringwood.
Also, 45 unnamed “surplus” government sites across Victoria will be converted to 9000 homes – including at least 10 per cent “affordable” housing.
Other changes include a “modest” 7.5 per cent charge on short-stay rental customers. The levy will apply to about 36,000 short-stay accommodations and replace local councils’ similar charges.
All revenue will go to Homes Victoria for building and maintaining social and affordable housing.
He said the reforms would provide 800,000 more homes in the next 10 years – in comparison to a projected 500,000 under the status quo.
It was a “big downpayment” on a target of 2.24 million new homes by 2051. By that time, Victoria’s population was predicted to top 10 million.
It may involve expanding the Free Tafe list to provide more building workers, he said.
Mr Andrews also announced rental reforms, including a portable bond scheme to carry a rental bond from one property to another.
There would also be restrictions on allowing landlords to evict tenants in order to “jack up” the rent, and a ban on rental bidding.
A new body will be created for landlord-tenant disputes, replacing the Victorian Civil and Administrative Tribunal.
