The Victorian Government has announced changes to car parking requirements that it says will make it cheaper and easier to build homes in well-connected areas, along with plans to extend the existing infrastructure contributions system to more train and tram zones.
Premier, Jacinta Allan said outdated car parking rules written half a century ago “have become a handbrake on home building”.
“Rules from the 1970s assumed every household needed car spaces no matter where they were built, even if they were next to train stations. That might have made sense 50 years ago when fewer people used trains and Melbourne lacked a City Loop or a Metro Tunnel – but it doesn’t make sense now,” she said.
“Across inner Melbourne, up to 40% of residential car parks now sit empty – especially in areas well served by trains and trams. Developers are still forced to make space for all of them, instead of unlocking space for homes. If they want to reduce the requirements, they need to go through a lengthy planning process to get permission.”
Under the changes being announced, requirements for accessible car parks (e.g. for people with disabilities) will not change. Developers will be able to apply for a planning permit if they wish to build more car parks than the number set under the new requirements.
The changes align Victoria’s car parking requirements with the transport system, reducing costs and speeding up the delivery of new homes near trains, trams, jobs and services, said the Premier.
“Old rules from Victoria’s lowest era of train usage are now blocking new homes for people who rely on public transport. We’re changing them, because the status quo doesn’t cut it,” she said.
“As we build more homes near public transport, we’re also delivering funding for the local parks, roads, schools and facilities that keep these communities great places to live.”
“All up, this is a win for industry who build new homes near public transport, a win for young people who’ll buy them – and a win for their neighbours in the local community.”
Melbourne’s Train and Tram Zone Activity Centre Program is unlocking more homes in areas that have already seen major investments – upgraded train stations, level crossing removals and upgraded schools and facilities.
The next step is making sure that funding for local infrastructure – like roads, intersections, parks, paths, schools and community facilities – continues to grow alongside new homes, said Ms Allan.
In 2024, the Government announced a simple infrastructure contributions system will be put in place across the first 10 pilot Activity Centres, which includes well-connected areas such as Camberwell and Frankston – starting on 1 January 2027.
Today, the Government confirmed that from July 2027 this program will be expanded to include the additional 50 Train and Tram Zone Activity Centres (except the two in inner-Melbourne that cover the entire Local Government Areas of Melbourne and Yarra).
As part of the program, developers contribute a consistent share of the cost of new homes to help fund the infrastructure communities need as they grow. If there is an existing Developer Contribution Plan in place in a certain council area, the amount developers will contribute through the new program will be reduced.
The infrastructure contributions amount will be set at $11,350 per each new dwelling built on a site. In combination with the changes to car parks and other massive planning reforms to make it faster and easier to build, industry is better off said the Premier.
By 2051, this program is expected to provide more than $4 billion worth of infrastructure across these centres to help deliver better public transport, parks, upgraded roads, expanded schools, and facilities in the areas that build more homes.
Funding will be linked to the local area where homes are built, with most of the funding going directly to local councils so they can deliver what their communities need.
The Premier said every cent collected and received by councils and the State Government must go to infrastructure that benefits a local area.
Projects funded could include:
- Upgrades to local roads, intersections and footpaths
- Active transport, including bike paths and walking trails
- Recreation and community infrastructure, including early childhood education, maternal and child health facilities, and community centres
- Parks, including playgrounds, shelters, toilets, landscaping, pathways
- Upgrades to major roads, new and upgraded bicycle and foot paths, and traffic signalling
- Public transport infrastructure, including more accessible bus stops, and tram stops
- Schools.
