Reformed commercial and industrial zones for Victoria Presentation by Paul Buxton, Statutory Systems, Department of Planning and Community Development 24 May 2013

Aims of reformed commercial and industrial zones Reformed commercial zones aim to: provide greater flexibility and growth opportunities for Victoria’s commercial and business centres, responding to changing retail, commercial and housing markets by allowing for a wider range of uses that will support more mixed use employment. Reformed industrial zones aim to: support business investment and industry by responding to new and emerging trends regarding the mix of industry, office and some forms of limited retail, and provide greater incentive for business investment. A commercial and industrial zones reform package has now been announced to ensure that the right planning tools are in place to achieve the desired strategic outcomes. 2

Snapshot Provides greater flexibility and growth opportunities for commercial and business centres. 3

The Commercial 1 Zone will: combine the existing Business 1, Business 2 and Business 5 Zones remove permit requirements for: –all Accommodation (other than a Corrective institution) –all retail uses (except for Adult sex bookshop) –Exhibition centre –remove the conditions for Education centre and Office The new Commercial 1 Zone broadens the range of activities that land can be used for without the need for a planning permit and generally removes floor area restrictions. Building and works and subdivisions will continue to require a permit. All floor space caps for shop and office will be removed for Melbourne metropolitan Councils but rural Councils will have existing schedules to the Business 1 and 2 zones migrated to a new Commercial 1 Zone schedule Commercial 1 Zone: Key features 4

The Commercial 2 Zone will: combine the existing Business 3 Zone and Business 4 Zone Not require a permit requirement for use for a Cinema, Cinema-based entertainment facility, Food and drink premises, Office, Restricted retail premises and Trade supplies remove the maximum floor area restriction for an Office prohibit accommodation (other than caretakers house, motel and residential hotel) allow use for a small-scale supermarket (<1800m 2 ) and associated shops (<500m 2 ) without a permit in the Melbourne metropolitan area but require a permit for these uses in rural municipalities Larger supermarkets and stand alone shops require a permit in the Melbourne metropolitan area and larger supermarkets are prohibited in rural municipalities Building and works and subdivisions will continue to require a permit Provide more opportunities for office and employment use including commercial businesses, restricted retail premises, trade supplies and some limited retailing activities Floor area restrictions for office and retail uses will be removed to create new opportunities for office and retail growth Commercial 2 Zone: Key features 5

Supermarkets and shops allowing a supermarket and shops in the Commercial 1 Zone without a permit allowing a small scale supermarket of up to 1800 square metres in the Commercial 2 Zone without a permit in all metropolitan planning schemes. Supermarkets greater than 1800 square metres in these areas require a permit requiring a permit for a small scale supermarket of 1800 square metres in the Commercial 2 Zone in rural areas to ensure the protection of established centres in regional towns requiring that supermarkets and associated shops adjoin or have access to a main road in the Commercial 2 Zone Offices, accommodation and floor space caps removing restrictions on floor space caps in most instances in commercial zones in metropolitan Melbourne and in rural Victoria for the Commercial 2 Zone allowing floor space caps to be specified in rural and regional Victoria in the schedule to the Commercial 1 Zone Allowing all accommodation as of right subject to meeting a 2 metre frontage condition (otherwise the use is permit required) in the Commercial 1 Zone prohibiting all accommodation (other than caretaker’s house, residential motel and hotel) in the Commercial 2 Zone. Commercial zones: specific features 6

Snapshot Supports business investment by providing more flexibility for office and some retail uses. 7

removes the default floor space area restriction of 500 square metres for an office in the Industrial 1 Zone, Industrial 2 Zone and Industrial 3 Zone, with the ability to specify locally set floor area caps Continue to prohibit a supermarket or shop of any size in the Industrial 1 and 2 Zones allow a small scale supermarket of up to 1800 square metres with associated shops totalling 500 square metres, and allow convenience shops in the Industrial 3 Zone in metropolitan Melbourne to create commercial opportunities and competition A permit for building and works and subdivisions will still be required. Industrial 1, 2 and 3 Zones: Key features 8

Supermarkets and shops Continues to prohibit a supermarket and shop in the Industrial 1 and 2 Zones allowing limited forms of retail in the Industrial 3 Zone no longer require a permit for a convenience shop in the Industrial 3 Zone allowing a small scale supermarket up to 1800 square metres in the Industrial 3 Zone without a permit in all metropolitan planning schemes require that supermarkets and associated shops adjoin or have access to a main road in the Industrial 3 Zone in all metropolitan planning schemes. prohibits a supermarket and shop in the Industrial 3 Zone in rural areas to ensure the protection of established centres in regional towns retaining all existing office floor space caps specified in a schedule to an industrial zone. Accommodation Continues to prohibit all accommodation use (other than caretakers house) in all industrial zones Industrial zones: specific features 9

Existing business zones will be converted to one of the new commercial zones and existing industrial zones will be amended The Ministerial Direction on the Form and Content of Planning Schemes will be amended On 1 July 2013, the existing five Business Zones will be deleted from the VPP and individual planning schemes through a VC Amendment with existing schedules deleted from individual planning schemes. On 1 July 2013, the new commercial zones will be inserted into the VPP and individual planning schemes through a VC Amendment with new schedules from the Business 1 and 2 zones amalgamated and inserted into individual rural planning schemes. Consultation will occur with rural councils on the content of that schedule to resolve any inconsistencies On 1 July 2013, the amended Industrial 1, Industrial 2 and Industrial 3 Zones will be incorporated into the VPP and individual planning schemes through a VC Amendment with existing or new schedules updated and inserted or amended into individual planning schemes. Overlays (such as IPOs, DPOs, etc) which include floor space provisions will be amended to delete those provisions throughout 2013 in consultation with local government (excepting for the Urban Growth Zone where floor space provisions remain) Implementation of commercial and industrial zones 10

Consultation and Advisory Committee The proposed Reformed Zones were made available for public comment in mid July 2012 for 10 weeks until 28 September Over 2000 submissions were received and summarised by the Department, with 446 submissions specifically to the commercial zones and 341 submissions specifically to the industrial zones All submissions were provided to, and considered by, the Advisory Committee. The Committee provided their Report to the Minister for Planning in late February The Committee broadly endorsed the Government’s approach to the reformed zones with 19 recommendations. Government supported 8 recommendations in full, 8 recommendations in part and didn’t accept 3 recommendations as detailed in a Government response. 11

For the reformed commercial and industrial zones, details of the: - Advisory Committee’s Report and recommendations - Government’s response to the Committee’s Report - final reformed commercial and industrial zones, 28 February 2013, and - fact sheet: reformed commercial zones - an update May fact sheet: reformed industrial zones - an update May 2013 can be viewed at: The report on the Residential Zones was provided to the Minister in mid December 2012 and was released with new zones in early March The report on the Rural Zones was provided to the Minister in late February 2013 and is currently being considered. For any further Departmental queries please contact Paul Buxton on , Rodney Wee on or Eric Lo Bianco on or Advisory Committee Report & Further Information 12