The Stage Government recently introduced opportunity for VicSmart application for 2nd dwelling in Residential Zones for Murrindindi and a couple of other Council areas, via Planning Amendment VC186 and introduction of Clause 51.06 into the Planning Scheme. This may in effect be a "pilot" study before being introduced more broadly across all Council's or removed if it's use is deemed not functional.
The 2nd dwelling needs to fit specific criteria and be retained on a lot containing the existing dwelling (non subdividable), and so in effect would work similar to that typical of a Granny Flat/Dependent Persons Unit but without restriction of requiring a dependent person to use the dwelling. May also be useful for enabling the permannet location of "tiny houses" on an urban residential site.
There may be other triggers that result in the VicSmart application not being suitable (Bushfire Management Overlay), resulting in the application needing a standard permit application process.