Planning Amendment VC322 was introduced by the Planning Minister on 2/11/2026, without Consultation of the Rural Council's, rural communities or private industry consultants like surveyors and Town Planners.
The Amendment has removed the "Smaller Lot" boundary realignment subdivision provision within the rural zones, meaning many boundary realignments in order to be considered would need to satisfy the rural zone minimum lot size.
Many rural lots have been created with areas that are less than the current rural zoning subdivision size, as many of these lots were created by the original Crown Grant or by provisions that enabled smaller subdivision lots to be cretaed, and long before the current planning scheme systems and methology were implemented.
Boundary Realignments occur for many reasons with some of these being:
- exchange of land between neighbouring lot owners
- realignment of lot boundaries to accord with existing fencing/occupation
- to resolve access encroachments on neighbouring properties
- to ensolve building encroachments
- to relaign the historical lot boundaries to better accord with the site conditions or existing land use of the land.
- to Realign Boundaries for improved farm management or for improved capital value to enble additional financing of farm improvements.
VC322 has now resulted in many logical, non-complicated re-subdivision / boundary realignment planning applications becoming potentially PROHIBITED overnight. Any applications currently under planning permit consideration that are non-compliant with the minimum lot size of the zone, may now not be able to be decided and determined by Council Planning Satff, even if the Council Planners are supportive of the proposed re-subdivision.
These elements of the VC322 subdivision rule changes are considered detrimental to farm owners and the rural communities in which they live. The previous provision that required planning permit approval, was an approrpaite mechanism to safeguard against any potential significant negative outcomes. the current "prohibition approach" as implemented in VC322 means the system that was regularly used to "resolve issues" may now not be available as a useful planning tool.
VC322 has created significant planning scheme problems, in an area of the planning scheme where few or minimal issues existed. This is an idealogical "Own Goal" by the State Government, as whilst also complicating issues for the rural areas, as it also will result in a downturn of Transfer of Land Stamp Duty revenue for the portions of land being exchanged in these Not in Common Ownership (NICO) Subdivisions between neighbouring rural land Owners. Without these rural re-subdivisions / boundary realignments being supported & registered at the Titles Office, there is no Stamp Duty collected!
Yarra Ranges has special provisions, so VC322 hasn't replaced these special provisions. Please call our office wif you are considering a boundary realignment / boundary re-subdivision between your existing adjoining parcels or with a neighbouring land-owner.
Other rural Council's like Murrindindi, will need to determine the impacts of VC322 and their interpretation of the amended rules, particluarly in the situation where lots smaller than the zone minimum subdivision size may result.
VC322 also removed the VicSmart Fastrack planning permit provisions that were available for rural 2 Lot subdivisions. This is a backward step in plannign, and this part fo the amendment now means that the costs of planning application and the time for determination of a decision have now both increased.
Thomas & George P/L are Licensed Surveyors with extensive rural survey and rural subdivision experience. Please contact our Lilydale or Alexandra Office (by appointment) should you have a rural survey project needing consultancy expertise.
Posted: 9 Nov 2026