Monday, December 15, 2025

Planning Reform Bill a missed opportunity for affordable homes says MAV

The Municipal Association of Victoria (MAV) and Community Housing Industry Association Victoria (CHIA Vic) are calling on the State Parliament to ensure the Victorian Government’s Planning Amendment Bill 2025 delivers affordable housing for the next generation.

The Bill will go before the Victorian Upper House in coming days and represents the biggest overhaul of the Planning and Environment Act 1987 in 40 years. While the Bill’s planning objectives include ‘the facilitation of social housing’, it provides no new mechanisms to actually deliver this, the Associations claim.

“Victoria’s housing affordability crisis cannot be fixed by focusing on market-rate housing supply alone. We need an affordable housing contribution requirement, something the Government promised to explore in its Plan for Victoria released earlier this year,” MAV CEO, Kelly Grigsby and Community Housing Industry Association Victoria CEO, Sarah Toohey said in a joint statement.

“In 2022, more than 146,000 Victorians did not have suitable housing – either experiencing homelessness, living in overcrowded housing, or spending more than 30% of their income on rent in the private rental market.”

Victoria still has the lowest proportion of social housing in Australia at 3.1% – well below the national average.

“Without any real mechanisms to deliver social housing through our planning system, the Victorian Government is only paying lip-service to the problem,” the statement reads.

“CHIA Vic and the MAV call on Parliament to ensure the Planning Amendment Bill 2025 introduces a new affordable housing head of power.

“Funds collected under this mechanism would contribute to the construction of new social housing in the same community, helping all Victorians to find safe, secure and affordable homes.”

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