Neighbours will no longer be able to object to subdivisions, standalone home builds and townhouse developments following a major planning system overhaul.
Victorian Planning Minister Sonya Kilkenny introduced a bill to parliament on Tuesday to shake-up the state's planning scheme, updating the current legislation made almost 40 years ago.
All development projects, regardless of their scale, currently follow the same procedural process that takes 140 days on average.
That process can blow out to as much as 300 days, if stalled by an objection.
Key reforms include faster timelines for simpler projects, with single homes approved in 10 days, townhouses and low-rise developments in 30 days and complex developments in 60 days.
It splits developments into three "streams" based on the size and complexity of the application.
The ability for anyone to object to standalone homes, duplexes, smaller townhouses and other low-rise developments will be removed completely, as long as the project meets planning requirements.
For more complex developments such as apartments, directly impacted neighbours will be notified and given 60 days to object.
"If you are a neighbour, then you will get notice and have the right to object," Ms Kilkenny told reporters on Tuesday.
"But if you are someone who lives on the other side of the city, that doesn't live anywhere near the development, you'll not have that right.
"Too many homes are getting blocked by people who don't live anywhere near these homes."
The definition of a neighbour for third-party appeals will be set out in yet-to-be-drafted regulations separate to the legislation.
Ms Kilkenny said the changes would bring Victoria's planning approvals appeal process into line with the rest of the nation.
Opposition Leader Brad Battin said he had a "serious problem" with the government taking away a community's rights to have a say and accused it of failing the "transparency test".
"It's vital that when we're voting on legislation around planning that we see the regulations and how it's going to operate and who it's going to impact," he said.
More than seven million people live in Victoria but the Australian Bureau of Statistics forecasts the population to rise to 11.5 million by 2055.
The Victorian government estimates another 2.24 million homes will be needed across Melbourne and the regions to cater for the population boom, and set a target in the 2023 Housing Statement to build 800,000 homes over the next decade.
All states and territories have agreed to the National Housing Accord, a country-wide target to build one million new and well-located homes over five years from mid-2024.
In January, the Property Council said Australia was already 15,000 homes behind target.
The State of the Housing System Report forecast Victoria could be the only state that comes anywhere near meeting its goal.
