Townhouse and low-rise code
The Townhouse and Low-Rise Code is a new state-wide planning control for residential developments of up to 3 storeys. It replaces existing local planning rules with a single, standardised code applied across Victoria.
Like the Mid-Rise Code, it introduces a “deemed-to-comply” pathway: if a proposal meets a set of numerical standards, councils must approve it.
A shift to automatic approvals
This reform fundamentally changes how planning decisions are made.
If a development complies with the code:
- A planning permit must be issued
- Council discretion is effectively removed
- Community objections carry little weight
- There is no right to appeal the decision at VCAT
If a proposal does not meet one of the standards, only that specific element can be contested — not the development as a whole.
In cases where other planning controls apply (such as heritage or environmental overlays), those requirements still trigger a permit and limited appeal rights — but only in relation to those specific controls.
Reduced setbacks and increased impacts
The Code introduces smaller setbacks, allowing buildings to be constructed closer to boundaries:
- Front setbacks reduced from 9 metres to 6 metres
- Side and rear setbacks reduced from 6 metres to 3 metres
These changes increase:
- Overlooking into neighbouring properties
- Overshadowing of adjoining homes and private spaces
- The overall sense of bulk in residential streets
They also reduce space for meaningful landscaping, including canopy trees that contribute to cooling and neighbourhood character.
Less green space, fewer trees
The Code significantly weakens requirements for vegetation and open space:
- Tree canopy requirements reduced to 10% (or 20% on large lots)
- Private open space reduced to 25 square metres
This raises concerns about a return to heavily built-up sites with minimal greenery — often referred to as “moonscaping” — where vegetation is replaced by hard surfaces and building footprint.
The cumulative effect across suburbs could be a substantial loss of tree cover, with implications for urban heat, biodiversity, and liveability.
Standardised — and lowered — sustainability standards
Sustainability and energy efficiency requirements are now standardised across all councils.
While consistency may sound positive, in practice it means that stronger local standards previously applied in some areas have been overridden and reduced to a lower common denominator.
This limits the ability of councils to respond to local environmental challenges or to push for higher-performing buildings.
Design by numbers
The Code includes minimum standards for:
- Apartment mix (1-, 2- and 3-bedroom dwellings)
- Sunlight access
- Storage
- Room sizes and ventilation
However, these are fixed, generic benchmarks applied across all developments and locations.
Combined with the deemed-to-comply system, this creates a “design by numbers” approach — where meeting minimum metrics is enough to secure approval, regardless of how well a development responds to its context.
What this means for Melbourne
The Townhouse and Low-Rise Code is not just a technical update — it represents a shift towards faster, more standardised development at the expense of local input and design quality.
By lowering key planning standards, removing council discretion, and limiting community rights, it prioritises speed and development yield over privacy, greenery, and neighbourhood character.
The likely outcome is an increase in lower-scale developments delivered under weaker rules — with cumulative impacts that will reshape suburban streets across Melbourne.