State Government response to the recommendations of the
Reformed Zones Ministerial Advisory Committee Commercial
and Industrial Zones Report
May 2013
REFORMED ZONES MINISTERIAL ADVISORY COMMITTEE: GOVERNMENT RESPONSE MAY 2013
Minister’s foreword
I am pleased to release the Commercial and Industrial Zones Report from the Reformed Zones Ministerial Advisory Committee. I would like to thank and
commend Geoff Underwood, Liz Johnstone and Joanna Stanley for their hard work and dedication in reviewing the many submissions and making detailed
recommendations. They have performed their task with great professionalism and examined the issues comprehensively.
The report broadly supports the Government’s approach to reforming our commercial and industrial zones, including consolidating five existing Business
zones into a streamlined framework.
The Commercial 1 Zone will replace the existing Business 1, 2 and 5 Zones and is designed to create vibrant mixed use commercial centres for retail, office
business and residential growth. The Commercial 2 Zone will replace the existing Business 3 and 4 Zones with the purpose of developing areas for appropriate
office and industrial uses, bulky goods retailing and other commercial services.
The Industrial Zones will also be reformed to remove default restrictions on office space and allow limited commercial development in the Industrial 3 Zone.
The reforms will drive greater competition in the supermarket sector in greater Melbourne through allowing small scale supermarkets in the new Commercial
2 Zone and Industrial 3 Zone. It will be harder for a single retailer to monopolise a local area under these new zones and consumers will benefit from greater
price competition between supermarket operators.
The Coalition Government is serious about encouraging greater productivity, investment, and employment growth through our planning zone structure.
These zones will help to achieve that, as well as building a more prosperous and liveable Victoria.
The Hon Matthew Guy MLC
Minister for Planning
REFORMED ZONES MINISTERIAL ADVISORY COMMITTEE: GOVERNMENT RESPONSE MAY 2013
COMMITTEE RECOMMENDATION
RESPONSE
1
That the ability to apply floorspace caps through the use of
schedules should be available for use in the Commercial 1 Zone
for shop and office uses by rural and interface councils.
Agree
in
part
2
That in the central, inner and middle suburbs of Melbourne,
restrictions around retail and office floorspace be removed.
Agree
3
That mechanisms such as floorspace caps in Commercial and
Industrial Zones in rural and interface municipalities are
maintained to allow for net community benefit from investment
in centres. These caps should remain until such time as the
commercial hierarchy in these locations is well established.
That changes to the Commercial 1 Zone be incorporated in
clause 34.01-4 to allow net community benefits to be
considered and negotiated by council with an applicant on a
case by case basis through a planning application for buildings
and works (or via an adopted Development Contributions Plan).
Reduce restrictions on supermarkets and convenience shopping
in most commercial locations to encourage a wide range of
supermarket formats.
Agree
in
part
4
5
Not
agree
Agree
The ability for rural and regional councils to introduce schedules to
allow for floor space caps for shop and office in the Commercial 1
Zone is supported. Existing floorspace caps for shop and office in
regional and rural councils will undergo a neutral translation to the
new Commercial 1 Zone on 1 July 2013.
Floorspace caps in the Commercial 1 Zone will not be applied to any
metropolitan council. In metropolitan Growth Areas, floorspace caps
for new suburbs that exist for land in an Urban Growth Zone will
remain.
The Ministerial Direction on The Form and Content of Planning
Schemes will be amended to clarify that the Schedule to the
Commercial 1 Zone can only apply a shop or office floorspace cap in
a regional or rural planning scheme.
Floorspace caps in metropolitan Melbourne that sit in schedules to
planning zones and overlays (separate to Business Zone schedules)
will also be removed by DPCD, by 31 December 2013.
Existing floorspace caps for shop and office in regional and rural
councils will undergo a neutral translation to the new Commercial 1
Zone on 1 July 2013.
Metropolitan councils will have floorspace caps removed in
Commercial zones.
In Industrial zones, scheduled office floorspace caps will be retained.
A new section on ‘Net Community Benefit’ will not be introduced.
Issues of access, safety, streetscape and amenity can be adequately
considered through Decision Guidelines in Clause 34.01-8.
REFORMED ZONES MINISTERIAL ADVISORY COMMITTEE: GOVERNMENT RESPONSE MAY 2013
COMMITTEE RECOMMENDATION
RESPONSE
6
That the condition against supermarket in section 1 of the
Commercial 2 Zone be varied to specify the maximum size of a
supermarket as 1,500 square metres.
Agree
in
part
7
That the condition against supermarket in section 1 of the
Industrial 3 Zone be varied to specify the maximum size of a
supermarket as 1,500 square metres.
Agree
in
part
8
That the condition against supermarket in section 1 of the
Industrial 3 Zone be varied to specify that a supermarket must
adjoin or have access to a road in a Road Zone.
That a separate commercial zone called the Commercial 3 Zone
be used primarily for restricted retail premises, trade supplies
and associated uses, similar in purpose and function to the
existing Business 4 Zone.
Agree
9
10
11
Not
agree
That accommodation be limited to a residential hotel and motel Agree
in the Commercial 2 Zone, with all other forms of
accommodation prohibited so as to help encourage nonpermanent residential accommodation that supports
employment in desired areas.
That a two metre frontage condition be added against the as-of- Agree
right accommodation use in the Commercial 1 Zone, so as to
encourage an optimum mix of employment and residential uses.
A 1500sqm maximum requirement would constrain competitive
impacts on full line supermarkets. A maximum size of 1800sqm will
be specified in regional Victoria (subject to permit).
The as-of-right 1800sqm supermarket in the Commercial 2 Zone will
only be applied to metropolitan planning schemes.
A 1500sqm maximum requirement would constrain competitive
impacts on full line supermarkets. A maximum size of 1800sqm will
be specified.
The as-of-right 1800sqm supermarket in the Industrial 3 Zone will
only be applied to metropolitan planning schemes. A supermarket
will be prohibited on land zoned Industrial 3 in regional Victoria.
Existing Business 4 Zone land will be included in the Commercial 2
Zone.
The provisions of the Commercial 2 Zone, which seek to ‘develop
commercial areas for offices, appropriate manufacturing and
industries, bulky goods retailing, other retail uses, and associated
business and commercial services’ appropriately reflect the range of
uses through the previous Business 3 and Business 4 zones.
To introduce the proposed Commercial 3 Zone would reduce the
range of uses allowed on land currently zoned Business 4 Zone and
would leave the Commercial 3 Zone as more restrictive than the
Industrial 3 Zone for a range of uses.
This supports the intent of the Commercial 2 Zone.
REFORMED ZONES MINISTERIAL ADVISORY COMMITTEE: GOVERNMENT RESPONSE MAY 2013
COMMITTEE RECOMMENDATION
RESPONSE
That a Commercial 3 Zone be created focussed on restricted
retail premises and trade supplies with Business 4 Zone land
translated to this new zone.
That the varied purposes to the Commercial 1, Commercial 2,
Commercial 3 and Industrial 3 Zones be approved as proposed
by the Committee.
Not
agree
As per recommendation 9.
Agree
in
part
14
That the land uses proposed by the Committee for each of the
Commercial 1, 2 and 3 and Industrial 3 Zones be approved as
included in the varied zones.
Agree
in
part
With some changes, as detailed in Reformed Commercial and
Industrial Zones May 2013.
Minor changes reflect the decision to include both Business 3 and
Business 4 Zone land within the Commercial 2 Zone.
With some changes, as detailed in Reformed Commercial and
Industrial Zones - May 2013.
Minor changes reflect the decision to include both Business 3 and
Business 4 Zone land within the Commercial 2 Zone.
15
That floorspace caps for office be removed from the table of
uses to the Industrial 3 Zone, with the ability to specify a cap in
the schedule to the zone.
That the varied Commercial 1, Commercial 2, Commercial 3 and
Industrial 3 Zones as recommended by the Committee be
approved.
Agree
17
That the implementation process provide between 3 and 6
months for councils to prepare for the implementation of the
new zones following the announcement of the final form of the
Commercial and Industrial Zones.
Agree
in
part
18
That assistance through DPCD regional offices and/or the Flying
Squad be provided where required to assist councils with
implementation.
That a simple framework for monitoring and evaluating the
reformed zones be developed and continuously applied.
Agree
12
13
16
19
Agree
in
part
Agree
With some changes, as detailed in Reformed Commercial and
Industrial Zones - May 2013.
Minor changes reflect the decision to include both Business 3 and
Business 4 Zone land within the Commercial 2 Zone.
The Reformed Commercial and Industrial Zones - May 2013 will be
implemented in Planning Schemes by 1 July 2013.
Neutral translations of existing floorspace caps in regional and rural
planning schemes will be undertaken by DPCD for implementation
on 1 July 2013.
Floorspace caps in metropolitan Melbourne that sit in schedules to
planning zones and overlays (separate to Business Zone schedules)
will also be removed by DPCD, by 31 December 2013.
If regional and rural councils request that any shop or office
floorspace caps in their planning scheme be removed, DPCD will
provide assistance.