Industry Update – 22 Sept 2025

Welcome to the September Edition of KLM Spatial’s Industry Updates.

Unlocking Strategic Sites Expression of Interest

For those who own, manage or otherwise have an interest in surplus land (people like us), on 17 September 2025 the State Government announced the opening of an expressions of interest process to unlock suitable surplus sites for rezoning through the new Unlocking Strategic Sites pathway.

The new pathway is a key initiative of the Victorian Economic Growth Statement, which aims to strengthen Victoria’s economy through job creation, enhanced investment opportunities and a focus on priority sectors. The hope for this program is to accelerate the delivery of land for homes and jobs whilst increasing investor confidence in Victoria.

The program, an extension of the Government’s much vaunted Development Facilitation Program, will identify opportunities for the repurposing and redevelopment of land, including but not limited to former industrial or institutional sites, as well as golf courses, racing tracks and surplus university-owned land.

A set of guidelines have been established to guide decision making against the following eligibility criteria.

  1. Location and scale
  2. Complexity
  3. Delivery confidence

The Minister and DTP (under delegation from the Minister) reserves the discretion to make the final, non-appealable decision regarding the eligibility of sites and/or exercise the Ministerial powers of intervention pursuant to section 20(4) of the Planning and Environment Act, 1987. At any stage during the site identification and selection process, DTP can determine that a site is no longer a priority for the Victorian Government. In such cases, consideration of the site in question may be

deferred and/or redirected to other established planning pathways.

Consultation ends 19 November 2025 with consideration and assessment of Expressions of Interest undertaken during December. Successful applicants will be notified in January/February 2026.

First climate risk assessment finds 1.5m Australians at risk from sea level rise by 2050, ABC


First climate risk assessment finds 1.5m Australians at risk from sea level rise by 2050 – ABC News


This article discusses Australia’s first national climate risk assessment, which highlights the severe threats posed by rising sea levels and climate change to the country. According to the report, 1.5 million Australians are at risk from sea level rise by 2050 if climate change continues unchecked. The assessment predicts sea levels will rise by 0.14 meters under 1.5°C warming, but by 0.54 meters under a 3°C scenario, with Queensland being home to 18 of the 20 most-exposed regions.

Additionally, nearly 600,000 people are at risk from sea-level rise by 2030. The report was released just ahead of the Australian government’s decision on its emissions target for 2035 and coincides with a United Nations meeting where countries will update their climate commitments

Climate Change Minister Chris Bowen stressed the importance of recognizing the risks and acting to reduce emissions, stating that the cost of inaction will always outweigh the cost of action. The assessment also notes that even with immediate emissions reductions, Australia will still face the impacts of climate change, including more frequent and severe heatwaves, with death tolls rising dramatically in cities like Sydney and Melbourne. The report highlights the potential for $40 billion in disaster recovery costs by 2050, a $611 billion loss in property value, and severe risks to biodiversity, including the destruction of coral
reefs and eucalypt forests. Up to 70% of species could face extinction under a 3°C warming scenario.

In response to the report, the government has released an adaptation plan, focusing on protecting vulnerable populations, ensuring climate resilience in infrastructure, and implementing adaptation measures across various sectors. An “action agenda” will be developed in collaboration with the states by the end of 2026 to identify priority areas for adaptation.

The VPA, PSPs and feedback

East of Aberline Precinct Structure Plan | Engage Victoria
Ballarat North | Engage Victoria

The Victorian Planning Authority is seeking feedback on two precinct structure plans for the regional cities of Warrnambool and Ballarat. Together, the projects will create over 10,000 new homes and 1,600 new jobs in regional Victoria.

Public consultation opened on 19 September and closes on 20 October 2025. Submissions will be reviewed until 30 November 2025 with a Directions Hearing and Planning Panel slated for February and March 2026 respectively.

Celebrating Beveridge with a beverage

The first stage of the Beveridge Intermodal Precinct (the ‘BIP’) has received the stamp of approval from Mitchell Shire Council.

The Beveridge Intermodal Precinct will be a nationally significant and Australia’s largest freight hub linking Melbourne with Sydney, Brisbane and Perth through the inland rail network.

On 5 August 2025, the Minister for Planning Sonya Kilkenny approved the Beveridge North West Precinct Structure Plan paving the way for 15,000 new homes.

And last year, the State and Federal Governments both announced funding to support the delivery of the Camerons Lane interchange at Beveridge to ensure there is a direct and efficient connection from the Hume Freeway to the Beveridge Intermodal Precinct.

Strategically located on the Inland Rail route, the 1,100-hectare Beveridge Intermodal Precinct with 600 hectares of developable land, will have the ability to offer the efficiency of double-stacked container services for 1.8-kilometre-long freight trains to Perth via Parkes, and to Brisbane on completion of Inland Rail.

The project is intended to be delivered in stages with the first to be operational in 2026. This first stage involves the construction and operation of a permanent rail connection to the existing Melbourne Albury-Sydney rail freight corridor and a basic terminal with no warehousing. A second stage of the project, due for operation in 2028/2029, is proposed as a full-service terminal with co-located warehousing and significant road upgrades.

State Government Goes Out On a Limb


Protecting and enhancing our tree canopy for a greener Victoria

In case you felt the new Clause 54, Clause 55, Clause 57, Activity Centre Policies and Housing Targets weren’t enough to keep you busy, a new statewide tree removal permit requirement has just dropped into Victorian Planning Schemes.

On 15 September 2025, Amendment VC289 introduced clause 52.37 (Canopy Trees) into all planning schemes. The clause requires a planning permit to remove, destroy or lop a canopy tree in specific circumstances. Importantly, this requirement applies to all residential zones except the Low Density Residential Zone and applies irrespective of whether a vegetation-related overlay exists over the land.

The new clause supports Action 12 of Plan for Victoria and state planning policies which seek to protect and enhance canopy tree cover in urban areas to reduce the impacts of urban heat on human health and wellbeing.

The rules to protect and enhance canopy trees on residential land are designed to balance canopy tree protection and minimize impacts on housing yield, recognizing government policy including Victoria’s Housing Statement although the implications will
take time to be properly understood.

The critical shift with this new planning provision is for ‘any’ tree above 5 metres in height, with a trunk circumference of more than 0.5 metres measured at 1.4 metres above ground level and with a canopy diameter of at least 4 metres within 6 metres of a front boundary or 4.5 metres from a rear boundary (good luck arborists) triggering the need for a planning permit.

Some applications will be eligible for a VicSmart assessment pathway which requires Councils to deliver decisions within 10 business days. Where an application is not eligible for the VicSmart process, notice of the application is not required and Council’s decision cannot be reviewed by the Victorian Civil and Administrative Tribunal.

India negotiating deal to create 1 million homes in Australia, approaches UAE for financial help

India is in “deep negotiations” to create 1 million homes in Australia and has reached out to the UAE for financial help on the same, Union Minister Piyush Goyal has said.

Goyal, who handles the Commerce and Industry portfolio, pegged this as a $500 billion opportunity.

“I am in deep negotiation with my counterpart in Australia to create 1 million homes. 1 million homes. Anybody wants to do the maths? A million homes in Australia would be at least $500 billion opportunity,”

Goyal said while speaking here over the weekend. He did not elaborate on details of the project, like the location in Australia, the exact spending by Canberra on it, or India’s role in the project.

Goyal said New Delhi is proposing to allow Indian workers to go to Australia, get trained on the necessary skill sets required to build homes as per local standards and create the housing.

Having pegged construction of 1 million homes as a $500 billion opportunity, Goyal said he has reached out to
the UAE – a significant investor in Indian real estate – to help on the financial front.

In remarks made during a meeting with a visiting trade delegation from the UAE, led by Trade Minister Thani bin
Ahmed Al Zeyoudi, Goyal said he has also put forth a proposal for partnership to the Gulf nation.

“I talked to Thani to see if we can do a partnership to help us fund this massive opportunity,” the Union Minister said.

Goyal said countries around the world are looking up to India for tie-ups and added that we need to seize such opportunities. “It’s for us to grasp these openings. If we miss out, we will have only ourselves to blame,” Goyal said, addressing the event organised by domestic industry grouping CII.

IBAC Operation Sandon Update

  • In 2023, the IBAC released its report into the key findings of Operation Sandon which investigated serious corruption conduct in relation to planning and property development decisions at the City of Casey.
  • Since then, the State Government provided a report in response to these findings which instigated a number of reforms and changes including, but not limited to;
  • Changes to the requirements on how lobbyists can engage with Politicians and their advisors
  • Full disclosure of all political donations for any party
  • Greater transparency in State Government decisions
  • For those following along, it was assumed that was end. However, some parties involved that were at the centre of the investigation, are now facing criminal charges.
  • A former City of Casey councillor has been charged with five offences including one count of receiving secret commissions and two counts each of misconduct in public office and misuse of position. A consultant involved in the property development industry has been charged with giving secret commissions.
  • Both accused are expected to appear before Melbourne Magistrates’ Court on 25 September 2025.
  • Watch this space to see what is next in this saga…..

Kingston Council

  • Another suite of Councillors have been put on notice until early 2026 and Monitors now appointed, this time at Kingston Council.
  • The Monitors have been introduced to Council to assist in ‘overseeing’ how council was making decisions and its open and transparency in decision making.

Kingston have had a number of issues recently with;

  • A Councillor needing to be stood down as she faced external legal matters
  • Poor training/induction processes of Councillors which meant they weren’t fully aware of all of their responsibilities and public disclosures required (ie. conflicts of interest)

Hazelwood Rehabilitation Project

The Hazelwood open-cut mine in the Latrobe Valley is currently undergoing rehabilitation following its closure in March
2017. The mine, which was one of Victoria’s largest open cut coal mines and power stations, is now being transformed
into a pit lake as part of a $439 million rehabilitation program. This process involves significant environmental considerations and is subject to regulatory oversight from the Department of Transport and Planning and Minister for Planning via an Environmental Effects Statement (EES) process.

ENGIE Hazelwood is progressing a comprehensive planning and consultation process on the Declared Mine
Rehabilitation Project (DMRP) following direction from the Minister for Planning in February 2022 that an EES would be required for the Rehabilitation Project. The public consultation process was commenced initially in May 2024 and on 1
July this year a further 60 days of formal consultation commenced with an extension given until Friday 12 September
2025. The draft DMRP is available here: www.hazelwoodrehabilitation.com.au

The DMRP applies only to land and activities within the Hazelwood Mine Mining Licence (MIN5004) area where the main
features of the defined area include the open cut mine and associated batters, overburden and ash dumps (both in and
out of the pit), topsoil, overburden and clay stockpile areas, mine services including potable water, firefighting water
and power, plant including mine offices and conveyors and mobile equipment and surface water infrastructure
including the Morwell River and Morwell Main Drain. There is also biodiversity offset areas within the mine licence area. The former power station and associated Hazelwood Cooling Pond are excluded from the mine licence area and therefore outside the scope of the DMRP. The removal or rehabilitation of these separate assets are assessed and given oversight via other regulatory pathways and therefore also aren’t captured by the EES.

Ultimately, the DMRP involves the following rehabilitation activities:

  • Filling of the mine void to a final operating level of up to RL +45m AHD (i.e. will go above and can go slightly below this level during periods of variation).
  • The use of extracted groundwater consistent with licensing; surface water under an agreed commercial agreement; rainfall; MMD flows; and limited flood skimming from Morwell River available pursuant to approvals separate to this DMRP.
  • Final reprofiling and coal capping works on the upper mine batters (i.e. above the surface of the future mine lake)
    to ensure geotechnically stable landforms with adequate stabilising vegetation and drainage to manage identified
    risks and provide for future safe public access to the lake.
  • Re-establishment of Eel Hole Creek (section within MIN5004), including construction of low flow and high flow channels that manage the interface with Morwell River and Eel Hole Creek.
  • Whilst rehabilitation of EPA licenced facilities does not form part of the DMRP scope, it is assumed that implementation will occur as required by the EPA licence.
  • Decommissioning remaining redundant infrastructure such as roads, car parks, buildings, fire suppression system above RL +45m and the section of saline water outlet pipeline (SWOP) on MIN5004.
  • Construction and operation of infrastructure necessary to maintain lake depth and water quality following
    completion of fill including the Morwell River interconnection based on the outcome objectives of the HRP ESS.

The march of the cities…

The top 50 largest ci

ties and towns in Australia (2025 update) | ID

Earlier this year demographics group ID published their annual article Top 50 Cities in Australia by Population. Here’s the Top 25! But where’s Warragul? Check it out at the link!

 

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