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The Victorian Planning Changes Affecting Rural Development Projects
Significant changes to Victoria’s rural planning framework came into effect through Amendment VC322, gazetted on 2 November 2026 effective immediately with no transitional guidance. The amendment introduced stronger protections for agricultural land and new restrictions around the fragmentation of farming properties. For landowners, developers and project teams, these changes will impact future use and management of agricultural lands and may also have implications for projects that are already underway.
Published under Sonya Kilkenny, Victoria’s Planning Minister, the stated purpose of the amendment is to reduce further fragmentation of farming land, strengthen protections for productive agricultural areas and support ongoing agricultural use across the state.
What Does This Mean for Rural Projects?
While the changes originate within the planning system, their impact can extend well beyond planning permits alone.
Projects involving:
- Rural subdivisions and resubdivision
- Lot excisions
- Boundary realignments
- New dwellings in Farming Zones
- Rural development approvals
will now be assessed under a more restrictive policy framework than previously applied.
The amendment places greater emphasis on protecting agricultural land and limiting outcomes that may lead to further fragmentation of farming properties. In practical terms, this may affect project feasibility, supporting assessments, approval pathways and the information required to support an application.
Why It Matters
For many development projects, planning, surveying and engineering requirements are closely linked.
Changes to planning policy can influence subdivision design, access arrangements, servicing requirements, wastewater considerations and broader site development strategies. As a result, projects that appeared straightforward under the previous planning framework may now be unsupported.
The full impact of the amendment will become clearer as councils begin applying the new provisions to individual projects. However, landowners and development teams should not assume that applications already in progress will be unaffected. Our planning team has already received notice that some applications must be withdrawn, and we have had to update any advice on rural subdivision and land use options.
What Should You Do Next?
If you have a rural development project currently being planned, assessed or delivered, now is the time to review whether Amendment VC322 may affect your project.
Early advice can help identify potential risks, additional requirements and opportunities to address issues before they lead to delays or redesigns later in the approval process.
For those seeking a more detailed explanation of the planning changes themselves, including the key policy shifts and how they may be applied by councils, you can read our detailed analysis from the Kinscope planning team here
As councils, planners and industry professionals begin interpreting and applying the new provisions, staying informed and reviewing projects early will be one of the most effective ways to minimise uncertainty and support informed decision-making.
