Clause 54 Planning Changes
From 8 September 2025, important updates to Victoria’s planning system came into effect through Amendment VC282, changing the way single dwellings and small second dwellings on lots under 300m² are assessed. These changes reshape Clause 54 of the planning scheme, replacing the previous VicSmart pathway, adding new sustainability and amenity standards, and aligning the provisions more closely with Clause 55 (townhouses and low-rise apartments).
If you are considering a new home, extension, or a second small dwelling on a lot under 300m², these updates will directly affect your project.
Homeowner’s Guide
What homeowners need to know about Clause 54
If your block is under 300m² and you’re planning a new home, extension, or a small second dwelling, recent planning changes may affect you:
Front setbacks reduced – homes can now sit closer to the street (6m or 4m in most cases, down from 9m).
Tree planting is mandatory – you’ll need 1–3 canopy trees depending on lot size.
Privacy rules relaxed for bedrooms – overlooking controls now only apply to living areas.
Solar protection introduced – your design must protect neighbours’ solar panels and provide a solar-ready roof for your own system.
Faster permit pathway – if your design meets all the standards, it may qualify for the 10-day VicSmart process.
The catch? If your site has an overlay (such as a Neighbourhood Character Overlay), stricter rules may still apply.
Summary of Clause 54 Updates
1. Key Structural Changes
Clause 59 deleted – VicSmart (aka fast-tracking) applications now assessed directly under Clause 54.
Deemed-to-comply framework – if a standard is met, the objective is satisfied and councils cannot apply additional guidelines or policies.
Transitional arrangements – applications lodged before 8 Sept 2025 remain under the old rules.
2. Neighbourhood Character (54.02)
Street setbacks (A2-1): Reduced – standard setback is now 6m (or 4m on most streets) instead of 9m.
Building height (A2-2): 9m (10m if sloping site).
Side and rear setbacks (A2-3): Clarified formulas.
Walls on boundaries (A2-4): Height and length limits retained, clarified.
Site coverage (A2-5): Capped at 60–70% depending on zone.
Tree canopy (A2-6): 1–3 canopy trees required depending on lot size, with soil and maturity standards.
Front fences (A2-7): Maximum 1.5m in most streets, 2m in Transport Zone 2.
Small second dwelling setbacks (A2-8): Must sit behind main dwelling frontage.
3. Liveability (54.03)
New requirements for street integration, private open space, solar access, and daylight to new windows.
Small second dwellings must have safe, independent pedestrian access.
4. External Amenity (54.04)
Daylight to existing windows: clarified measurement using 55°/35° arc method.
North-facing windows: setback formula updated.
Overshadowing of secluded private open space: must retain >50% or 25m² for 5 hours (9–3, equinox). If already below, no further loss allowed.
Overlooking: bedrooms no longer defined as “habitable rooms” for privacy purposes.
5. Sustainability (54.05 - New Section)
Permeability: at least 20% of site must remain pervious.
Solar panels protected: new setback formula prevents overshadowing of adjoining solar systems.
Rooftop solar-ready area: each new dwelling must provide an unshaded, usable roof plane suitable for solar installation. Complex roof forms may not comply.
Solar protection: new north-facing windows must include shading to block summer sun while admitting winter sunlight.
6. VicSmart Process
10-day VicSmart (aka fast-tracking) assessment applies where all Clause 54 standards are met.
No third-party notice or appeal rights if deemed-to-comply standards are satisfied.
Clause 59 deleted and integrated into Clause 54.
What This Means in Practice
For architects and designers, the changes mean:
More certainty – clear formulas reduce interpretation disputes. And a new guide with updated diagrams like the one here to help remove ambiguity or misunderstandings.
Tree canopy and solar readiness – must now be designed into even small projects.
Amenity rules clarified – fewer grey areas but less flexibility.
Setbacks reduced – the shift from 9m to 6m front setbacks increases design potential for small lots.
Overlays still apply – particularly Neighbourhood Character Overlays and Heritage Overlays, which can and will override many of these new standards.
Conclusion
Clause 54 is now more consistent, more sustainability-focused, and more aligned with broader housing standards in Victoria. For anyone designing or planning a home on a small lot, these updates bring both opportunities and new requirements. The clearer rules should reduce disputes with councils, but early planning advice is essential where overlays or additional provisions apply.
Disclaimer
This summary is provided for general information only and is not a substitute for professional planning or legal advice. The application of Clause 54 will vary depending on site-specific conditions, overlays, and local planning policies. Always seek tailored advice from a registered architect, planner, or your local council before making project decisions.
This map shows just how much of greater Melbourne is covered by heritage overlays. While heritage has an important role, blanket overlays can limit opportunities for medium-density housing in well-connected inner suburbs – exactly where we need more mid-sized, well-designed homes. (Source: VicPlan)
The Case for the Missing Middle
What we truly need are mid-sized, well-designed homes in connected neighbourhoods. Not tiny shoebox apartments. Not oversized four-bedroom homes on the fringe. Something in between.
Mid-sized homes are:
Efficient: Easier to maintain, heat, and cool.
Flexible: Designed to evolve with households across different life stages.
Connected: Located near schools, transport, parks, and shops — making life less car-dependent and more community-focused.
And yet, these homes are in short supply.
Part of the reason is policy. Much of Melbourne’s inner and middle-ring suburbs are restricted by blanket heritage overlays and zoning that prevents gentle infill or medium-density development. As the map below shows, huge portions of the city are effectively frozen in time - even in areas well-serviced by infrastructure.
Retrofitting and reconfiguring existing homes is particularly powerful in inner and middle-ring suburbs already well-serviced by public transport and infrastructure. These areas offer the strongest opportunity for sustainable density — without waiting for new estates to catch up on roads, schools, and services.
FAQs About Clause 54
Do these changes apply to every home in Victoria?
No. Clause 54 mainly applies to single dwellings and small second dwellings on lots under 300m² in certain residential zones (General Residential Zone, Neighbourhood Residential Zone, Residential Growth Zone, Mixed Use Zone, Housing Choice and Transport Zone, and Township Zone).
What if my lot is bigger than 300m²?
For larger blocks, most residential standards are assessed as part of the building permit process, not Clause 54. However, overlays or local schedules may still trigger planning permits.
I already lodged a permit before 8 September 2025 – what happens now?
Applications submitted before the changes continue under the old Clause 54 rules. The same applies if you’re amending an existing permit that was lodged earlier.
What about overlays like Neighbourhood Character or Heritage?
Overlays still apply. They can override or add to Clause 54 standards, which means stricter setbacks, design controls, or material requirements may continue to apply.
Does Clause 54 affect solar panels or energy efficiency?
Yes. The new standards protect neighbours’ solar panels from overshadowing and require all new dwellings to provide a usable, unshaded roof area for future solar.
Will the new VicSmart pathway help me?
If your design meets all Clause 54 standards, your application may be eligible for VicSmart – a streamlined 10-day permit process with no third-party objections.
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