Permit needed to remove canopy trees

In September 2025, the Victorian Government introduced significant changes to protect and enhance urban tree canopy cover through Amendment VC289 to the Victoria Planning Provisions. This amendment inserted Clause 52.37 (Canopy trees) into all Victorian planning schemes, effective from 15 September 2025.

The changes require a planning permit to remove, destroy, or lop a canopy tree on land in most residential zones (excluding the Low Density Residential Zone). A canopy tree is defined as one exceeding 5 metres in height, with a trunk circumference greater than 0.5 metres (measured 1.4 metres above ground) and a canopy diameter of at least 4 metres. Special provisions apply to boundary canopy trees near front (up to 6 metres) or rear (up to 4.5 metres) setbacks.

The primary purpose of Clause 52.37 is to maximise retention of existing canopy trees—especially on sites without proposed development—while balancing this with housing needs. For developments, it mandates minimum canopy cover outcomes: approximately 10% on sites up to 1,000 m² and 20% on larger sites at tree maturity, often through protection of existing trees or replacement planting.

These reforms support Action 12 of Plan for Victoria and related state policies (e.g., Clauses 12.06-1S Urban forests and 13.01-3S Urban heat), aiming to combat urban heat, improve health and wellbeing, and promote greener, cooler residential areas amid population growth.

What Recent Activity Centre Zone Changes Mean

Victoria’s evolving approach to Activity Centres is reshaping how growth, housing and investment are directed across metropolitan Melbourne. Recent reforms introduce clearer height frameworks, streamlined assessment pathways and new tools—such as the Housing Choice and Transport Zone and Built Form Overlay—to accelerate well‑located housing supply while providing greater certainty for developers and councils.  

For proponents, the implications are significant. Defined core and catchment areas now set transparent expectations around scale, density and built form, reducing negotiation risk and supporting faster decision‑making. Height ranges in key centres—some exceeding 10 storeys—signal a stronger policy mandate for intensification in well‑serviced locations. 

For councils, the reforms reinforce Activity Centres as the primary focus for accommodating long‑term housing targets. For landowners and developers, they create a more predictable environment to test feasibility, pursue rezonings, and bring forward mixed‑use and residential projects aligned with state housing objectives.

Impact of the Middle East hostilities

The recent escalation in the Middle East is reverberating through global markets, and while Australia is geographically distant, we are not immune to its economic effects.

In the near term, rising oil prices are likely to push up inflation, prompting the RBA to keep interest rates higher for longer. This may reduce borrowing capacity and soften buyer sentiment, particularly in outer-suburban areas.

However, Melbourne’s housing market remains underpinned by strong fundamentals: a growing population, tight rental markets, and a persistent housing shortfall. These factors continue to support property values, even amid global uncertainty.

We recommend buyers and investors remain focused on long-term fundamentals and work closely with finance professionals to navigate the current interest rate environment.

Please reach out if you’d like to discuss how this may affect your property plans.