VicSmart Subdivision in Victoria: 10 Business Day Planning Permits

Planning to subdivide your block or split two units onto separate titles in Victoria? You may be able to use VicSmart, a fast-track planning permit process that can cut Council assessment time from 60 days to 10 business days and reduce application fees by more than 80 per cent.

Since October 2025, Amendment VC288 has extended VicSmart to cover two-lot subdivisions and two dwellings on a lot. Twelve months on, councils and industry have got to grips with the new classes, and VicSmart is now a standard option AGS considers for eligible clients.

This guide explains what VicSmart is, which subdivisions qualify, and what goes into an application.

What is VicSmart?

 VicSmart is a streamlined planning permit process in Victoria for straightforward, low-impact applications. Eligible applications are assessed against a narrower set of requirements, with no public advertising, and Council has a much shorter statutory timeframe to make a decision.

How much faster and cheaper is VicSmart?

• Assessment time: VicSmart applications have a statutory assessment timeframe of 10 business days, compared with 60 days for a standard planning permit.
• No advertising: VicSmart applications are not advertised to neighbours, which avoids a common source of delay and objections.
• Lower fees: For a standard two-lot subdivision, the Council planning permit application fee is $1,537.00. A VicSmart subdivision application fee is $233.10 (2026–27 fees).

VicSmart doesn’t replace the standard planning permit process. Your project has to meet specific eligibility criteria. Where it does, VicSmart can save a lot of time and money.

Which subdivisions qualify for VicSmart?

 Subdividing two units under construction

If you have a planning permit to build two units, AGS can apply for a VicSmart permit to subdivide them onto two separate titles, provided that:

• the development has lawfully started. Councils generally accept poured concrete floor slabs as evidence of commencement, so once the slabs are down, we submit a photo as proof;
• the subdivision does not create a vacant lot. The permit must be for two units, and both must be under construction; and
• the planning permit is still current and has not expired.

 Subdividing a new unit from an existing house

If your planning permit allows a second dwelling on a lot with an existing house, AGS can apply for a VicSmart permit to subdivide into two lots. The same conditions apply as for two units under construction.

 Subdividing an existing multi-unit development

If you own an existing multi-unit development, AGS may be able to apply for a VicSmart permit to subdivide the units onto separate titles, provided that:

• each proposed lot contains an existing building or car parking space;
• the buildings or car parking spaces were lawfully constructed; and
• an Occupancy Permit or Certificate of Final Inspection was issued within the last five years.

 Two-lot subdivision of residential land

If you want to subdivide residential land into two lots, either keeping an existing house on one lot and creating a vacant lot or creating two vacant lots, AGS can apply for a VicSmart permit if:

• the land is in an eligible residential zone;
• the subdivision creates at least one vacant lot;
• the land does not contain native vegetation, if it is 0.4 hectares or larger;
• the land is not covered by an Environmental Audit Overlay or Neighbourhood Character Overlay;
• the land is not in a designated Bushfire Prone Area under section 192A of the Building Act 1993; and
• the land is connected to reticulated sewerage, if it is in the Township Zone.

 Boundary realignments between two lots

VicSmart can also be used to realign the boundary between two lots, provided the area of either lot is reduced by less than 15 per cent and the general direction of the common boundary doesn’t change.

What do you need for a VicSmart subdivision application?

The documents required depend on the type of application. For a two-lot residential subdivision, a VicSmart application generally includes:

• a Site and Context Analysis Plan;
• a Design Response Plan; and
• a Design Response Report.

Supporting reports from other consultants may also be needed, such as preliminary drainage advice or design from a civil engineer, or an arborist or ecologist report where vegetation has to be assessed.

The application still has to address the relevant requirements of the Planning Scheme. What VicSmart changes is the processing: Council can fast-track an eligible application, which is where the time and cost savings come from.