Victoria’s new Unlocking Strategic Sites pathway opens door for landowners and developers

Landowners and developers in Victoria now have a new pathway to fast-track the rezoning of underused or surplus land with the Victorian Government’s new Unlocking Strategic Sites pathway.

Introduced in September, the initiative builds on the Development Facilitation Program and aims to identify opportunities to strategically repurpose and redevelop land, including former industrial areas, disused golf courses, old racetracks and surplus university sites, to meet the state’s housing and employment needs.

Interested parties can submit an Expression of Interest (EOI) via the Department of Transport and Planning’s website until 19 November 2025. Successful applicants will be notified in early 2026.

Benefits of the new planning pathway

Currently, rezoning land through councils can take two years or more. Under this streamlined approach, that process could be cut in half.

The new pathway is designed for projects that do not yet include a planning permit application for development but would be suitable for a planning scheme amendment under section 20(4) of the Planning and Environment Act 1987.

Who is eligible for the Unlocking Strategic Sites pathway?

Those wishing to submit an EOI must meet a set of criteria across three key areas – location and scale, complexity and delivery confidence.

Location and scale

The EOI must:

• align with relevant state, regional and local planning policy, initiatives of Victoria’s Housing Statement: The decade ahead 2024-2034 and Victoria’s Economic Growth Statement, Victoria: Open for Business, 2024
• be within a defined ‘settlement boundary’ or adjacent to an urban zone where no boundary exists
• be at least two hectares in size
• demonstrate planning significance by proposing a use or development that either raises a major issue of policy or has a substantial impact on the future planning of the area.

Those submitting an EOI for residential use must include at least 10% affordable housing, as defined in section 3AA of the Planning and Environment Act 1987.

Complexity

The EOI must:

• be adequately provided with civil infrastructure and services
• be supported by servicing agencies
• resolve matters relating to contamination, flooding, bushfire, biodiversity, heritage and transport
• include the delivery of public benefits such as employment, public and community spaces, affordable housing and utilities.

Delivery confidence

The EOI will:

• provide evidence to demonstrate that investment is committed or available to deliver the rezoning and subsequent development of the land
• demonstrate it has been unreasonably delayed by the planning system
• demonstrate that a planning permit application will be submitted within 12 months of the rezoning of the land being finalised.

Implications for landowners and developers

This initiative presents landowners who meet the eligibility criteria with a unique fast-track opportunity to re-zone underutilised land for future subdivision and development. The initiative is open on a voluntary opt-in basis. 

Ordinarily, land re-zoning is a long and drawn-out process that can be met with local Council opposition. However in this instance, with State Government backing, if landowners have plans to redevelop underutilised lands holdings, even at a conceptual stage, then this initiative represents an opportunity to kick start that redevelopment process and realise, and indeed improve, the development potential of the land.

Depending on the current zoning of the land, there may be land tax implications associated with re-zoning to a residential zone if that land is then left vacant. Moreover, windfall gains tax is triggered by a re-zoning of land. 

Holding Redlich can prepare an EOI on your behalf while also providing comprehensive strategic and legal advice in relation to all planning law related matters, including land re-zoning, subdivision, heritage, land contamination, and the land tax and windfall gains tax implications of this initiative.  If you have any questions or need assistance with preparing an EOI, or require any related legal or strategic advice, please contact us here.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future. 

Published by:

Andrew Iser

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