Victoria Planning Amendment VC271 Explained: What Rural Landowners and Developers Need to Know

What Is Planning Amendment VC271?

On 6 February 2026, the Minister for Planning approved Amendment VC271 to the Victoria Planning Provisions (VPP), with the amendment taking effect immediately upon publication in the Victorian Government Gazette.

This amendment affects 60 planning schemes across Victoria — making it one of the broader state-wide amendments in recent years. If you own or are developing land zoned Farming Zone (Clause 35.07) or Rural Activity Zone (Clause 35.08), this update is directly relevant to you.

What Does VC271 Change?

Amendment VC271 introduces a new exemption from the minimum subdivision lot size requirements in both the Farming Zone and the Rural Activity Zone.

Specifically, the exemption applies where subdivision is required for a utility installation to transmit, distribute or store electricity.

In plain terms: if a parcel of rural land in Victoria needs to be subdivided to accommodate electricity infrastructure — such as transmission lines, distribution substations, or energy storage facilities like batteries — that subdivision is now exempt from the minimum lot size rules that would otherwise apply under those zones.

Why Does This Matter?

Supporting Victoria's Renewable Energy Transition

Victoria has ambitious renewable energy targets, and the rollout of wind farms, solar farms, and grid-scale battery storage across regional Victoria is accelerating. A consistent barrier to this infrastructure has been the planning system's minimum lot size requirements in rural zones, which were not designed with modern energy infrastructure in mind.

VC271 directly addresses that gap. By creating a tailored exemption, the state government is removing a technical planning obstacle that previously required time-consuming and costly permit or subdivision applications for what are essentially utility purposes.

Implications for Farming Zone and Rural Activity Zone Land

Under the current framework:

- The Farming Zone is designed to protect productive agricultural land and generally applies large minimum lot sizes to prevent fragmentation.

- The Rural Activity Zone also nominates minimum lot sizes through its schedule, reflecting the mix of farming and non-farming uses the zone supports.

Both zones now carry an express carve-out: if you are creating a lot for a utility installation that transmits, distributes or stores electricity, the minimum lot size does not apply.

-Who Should Pay Attention to VC271?

- Rural and regional landowners considering hosting electricity infrastructure (e.g. easement lots for transmission lines, battery storage facilities, substations)

- Renewable energy developers — including solar, wind, and battery storage proponents — operating on Farming Zone or Rural Activity Zone land

- Councils in regional Victoria administering the 60 affected planning schemes

- Subdividers and conveyancers working with rural titles that may intersect with energy projects

Does VC271 Remove the Need for a Planning Permit?

Not necessarily. The exemption introduced by VC271 specifically relates to **minimum lot size requirements for subdivision**. It does not automatically remove the need for:

- A planning permit for **use** of land for a utility installation (where one is required under the zone)

- A planning permit for **buildings and works** associated with energy infrastructure

- Any overlay requirements (e.g. Vegetation Protection Overlays, Environmental Significance Overlays, or Bushfire Management Overlays) that may apply to the land

A proper assessment of your specific site and project is essential. Every parcel of land is different, and the overlay controls, zone schedules, and policy context all interact with each other.

How We Can Help

At Equinox, we specialise in navigating Victoria's complex planning system on behalf of landowners, developers, and infrastructure proponents.

Whether you're:

- A landowner approached by an energy company wanting to use part of your rural property

- A developer planning a renewable energy facility requiring lot creation

We can provide tailored planning advice, prepare and manage permit and subdivision applications, and help you understand exactly what approvals are — and aren't — required under the updated provisions.

Contact us today for an obligation-free conversation about your project.