Cardinia Shire Council is joining a call for more clarity on the state government’s new planning amendments, which some claim lay the groundwork to repurpose funding dedicated to infrastructure in the outer suburbs.
Parliament’s lower house has passed Planning Amendment Bill 2025, dubbed “Better Decisions Made Faster,” to streamline paperwork in Victoria’s bid to rapidly increase housing stock and associated infrastructure.
However, recent criticism has focused on changes to the Growth Areas Infrastructure Contribution, a one off payment by developers in shires like Cardinia, triggered by subdivisions and planning applications.
The fund has the state government sitting on hundreds of millions dedicated to school, road, transport and community infrastructure for outer Melbourne, but a proposed clause in the new amendments says the fund can go to “infrastructure that services the growth area” without “reasonably being located within it.”
There are also further concerns about changes to Infrastructure Contributions Funds, limitations to resident appeal rights and council powers.
In streamlining home approvals, council decisions can be usurped by the state government if they are not made within new timeframes. Standalone homes would have a 10-day deadline, townhouses and low-rise apartments 30 days and 60 days for large apartment complexes.
The streamlining of houses and townhouses could be approved without any objections, while appeals against large developments could only apply to direct neighbours.
The Municipal Association of Victoria (MAV) has raised concerns about the lack of communication with councils, and Cardinia Shire and Casey Council have reiterated those concerns.
Mayor Jack Kowarzik said that updating planning laws is broadly supported, but there are “serious concerns” with aspects of these amendments, calling the approach of the state government “narrowly focused.”
“Not only will the Bill create a significant regulatory burden on local councils, it reduces neighbours’ rights to know about proposals, their appeals rights and the opportunity for council to assess applications to ensure the best possible outcome,” he said.
“It’s important that any changes to planning legislation do not prioritise quantity and speed over the quality of developments, the amenity and liveability of our neighbourhoods and protecting our environment.
“At this stage, we don’t have enough information on how the GAIC and ICP clauses will impact growth area councils such as Cardinia Shire, and we’re seeking more information from the state government on this, and other aspects of the Bill.
“We’re concerned that councils haven’t been consulted on the Bill, and urge the state government to pause the legislation and undertake further engagement with councils to ensure that we get it right.”
The opposition last week claimed the amendment allows the state government to divert funds to such projects as the Suburban Rail Loop.
Shadow Minister for Planning and Housing, Richard Riordan said the state government is very good at “juggling the money around.”
“This allows the government to take that money away. And it’s very unfair,” he said.
“GAIC money is for GAIC purposes. It’s for growth area infrastructure contributions. That’s what it’s for, and that’s what it should stay for.”
The state government says the amendment updates the laws to allow funding to be allocated nearby to the suburbs where it was collected, to support projects like a train station or road link that would provide a direct and measurable connection to the suburb.
According to the state government, a planning permit on average takes 140 days to get approved and if there is an objection, that number goes up to 300 days.
The deadlines on councils for each new housing stream and limiting the “broadest third-party appeal rights in the country,” the state government says, is part of speeding up home building to unlock $900 million of economic value per year.
A spokesperson accused the opposition of exploiting the issue.
“The only way to make housing fairer for young Victorians is to build more homes faster, that’s why we’re delivering the biggest overhaul of Victoria’s planning laws in decades, bringing Victoria’s old fashioned ‘NIMBY’ planning laws into the modern era,” the spokesperson said.
“It’s disappointing to see the Liberals are once again spreading misinformation while we get on with delivering our plan to build more homes for more Victorians.
“GAIC funding will only ever be used for the benefit of these growing communities.”
Greens candidate for South Eastern Metropolitan Region, Matthew Kirwan, said the amendment could allow the funds to be “stolen away” for marginal inner city seats.
“Without tight controls, this change is custom made to build an election war chest at the expense of forgotten working families on Melbourne’s urban fringe, including the south east,” he said.
At the time of writing, the planning amendment is still being considered before the upper house.
