Welcome to the April edition of KLM Spatial’s Industry Updates.
In this issue, we delve into the latest developments shaping our industry, including the Suburban Rail Loop Structure Plans and Draft Planning Scheme Amendments, the City of Casey’s most recent planning updates, and the VPA’s newly released Guidance Note on Infrastructure Coordination and Development Staging.
Suburban Rail Loop: Planning, Costs & What It Means for Melbourne’s Growth
The Suburban Rail Loop (SRL) — one of Victoria’s most ambitious infrastructure projects — continues to evolve, with key planning documents now open for public comment. Draft structure plans and proposed planning scheme amendments for the SRL precincts of Cheltenham, Clayton, Monash, Glen Waverley, Burwood, and Box Hill are currently on exhibition, with submissions closing on 22 April 2025.
At KLM Spatial, we’re closely monitoring this process, as the SRL will significantly influence land use, transport connectivity, and development potential across Melbourne’s middle-ring suburbs.
SRL East: A Multi-Billion-Dollar Investment
The first stage, SRL East, is forecast to cost around $36 billion, although some estimates suggest this may rise beyond $50 billion. The section is planned for completion by 2035, connecting key employment, health, and education hubs with fast, high-capacity rail.
Future Extensions and Funding Uncertainty
The proposed northern extension — incorporating new stations at Doncaster, Heidelberg, Bundoora, Reservoir, Fawkner, Broadmeadows, and Melbourne Airport — brings the total project estimate to approximately $200 billion, with full completion expected by 2053.
Funding is proposed to come from a combination of state and federal government contributions, along with developer contributions and value capture mechanisms. However, with a subdued outlook for apartment construction in Melbourne, questions remain around the reliability of developer-driven funding streams.
Calls for Caution from Infrastructure Australia
A recent report from Infrastructure Australia has advised the Victorian Government to prepare “exit strategies” in the event that the proposed funding framework cannot be secured. This recommendation reflects growing concerns about the long-term financial viability of the project.
While the Albanese Government has committed $2 billion, Opposition Leader Peter Dutton has publicly stated his intention to withdraw that support if elected — further complicating the funding picture.
What This Means for Planning and Development
As the SRL reshapes Melbourne’s urban landscape, it presents both opportunities and challenges for planners, developers, and landowners. Strategic rezoning, increased density, and infrastructure uplift will open new possibilities — but also demand careful navigation of evolving planning controls.
At KLM Spatial, we’re committed to helping our clients stay ahead of these changes. Whether you’re looking to understand development potential in a key SRL precinct or prepare a submission on the draft plans, our team is here to assist.
City of casey's annual developer forum discussion summary
Casey Developer Forum 2025: Key Takeaways for Planning & Development
On 19 March 2025, members of the KLM Spatial team joined a strong contingent of industry stakeholders at Casey’s Annual Developer Forum, held at Bunjil Place in Narre Warren. The forum provided valuable insights into the municipality’s priorities, key infrastructure projects, and broader planning issues that will shape the south-east growth corridor in the years to come.
Leadership Insights: Governance, Advocacy & Investment
Mayor Stefan Koomen, opened the forum with a focus on good governance and transparency, reinforcing Council’s commitment to accountable leadership during a period of rapid urban growth.
CEO Glen Patterson spoke to the city’s ongoing advocacy and funding achievements, highlighting both wins and ongoing challenges, including:
$42 million secured for the Thompsons Road and Clyde Road intersection and rail extension
Rollout of 5G mobile infrastructure to support technology-led growth
More funding in Early Learning Centres and the Alexander Boulevard Community Hub
Broader concerns about State Government financial constraints, especially around Growth Areas Infrastructure Contribution (GAIC) funds
Discussion of recent GAIC administrative changes, opening the door for more flexible engagement with state agencies
Introduction of the “4-b” Fire Services Levy system, set to cost $12 million in Casey alone
Planning Pipeline & Policy Issues
James Collins, Director of City Planning and Infrastructure, presented data and updates on planning and development activity across the municipality. While recent figures show an uptick in lot delivery and road construction, the broader five-year trend remains flat, indicating that longer-term momentum is still building.
Additional updates included:
Casey is on track to exceed its housing target under the Plan for Victoria (PfV) and align with the Infrastructure Victoria Draft Strategy
A Council ambition to increase urban canopy cover to 30% (currently at 11%)
Several planning and policy issues under active review:
Planning and Environment Act (PE Act) reforms
The structure and application of GAIC and ICPs (Infrastructure Contributions Plans)
Emerging standards for the townhouse code
The ongoing two-lot dwelling exemption, which continues to create uncertainty in low-density areas
Implications for Developers & Landowners
The forum reinforced that while infrastructure investment in Casey is progressing, developers must remain alert to policy shifts, funding challenges, and compliance reforms. The evolving planning landscape will require careful navigation in both greenfield and infill development contexts.
At KLM Spatial, we closely monitor municipal priorities and state-level planning changes that impact our clients. Whether you’re planning a subdivision, managing permit processes, or seeking clarity around development contributions, our team is ready to assist.
VPA GUIDANCE NOTE: INFRATRUCTURE COORDINATION AND DEVELOPMENT STAGING
Coordinated Infrastructure Planning: Key Insights from the VPA’s Latest Guidance
The Victorian Planning Authority (VPA) has recently released an updated Guidance Note on Infrastructure Coordination and Development Staging (February 2025), as part of its Practitioner’s Toolbox. This document offers important direction for planning authorities, responsible authorities, developers, and stakeholders involved in the preparation and implementation of Precinct Structure Plans (PSPs).
At KLM Spatial, we welcome the clarity this guidance provides around sequencing infrastructure delivery with land development — a key consideration in ensuring well-serviced, liveable communities.
The Role of the Infrastructure and Development Staging Plan (IDSP)
A central focus of the guidance is the preparation of an Infrastructure and Development Staging Plan (IDSP), which aims to align infrastructure rollout with projected growth across new communities. The IDSP forms a critical part of the PSP, providing a framework for how local and state infrastructure is to be delivered in a logical, efficient, and scalable way.
The VPA outlines that the IDSP should:
Be based on a clear and consistent methodology
Identify and manage the stages of growth within a precinct
Ensure infrastructure delivery is cost-effective and well-timed
Incorporate practical, real-world examples to assist with implementation
The intent is to support informed decision-making during PSP preparation, with IDSPs typically drafted following the completion of all technical studies, often prior to public consultation.
Foundational Principles for Staged Development
The guidance is underpinned by several key principles, including:
A minimum level of infrastructure must be available to support early-stage development
Future infrastructure corridors must be protected from being compromised by premature development
A viable scale of development is required to justify infrastructure investment
Planning approvals serve as the key mechanism to facilitate timely infrastructure delivery
These principles reflect the importance of balancing early land activation with long-term infrastructure outcomes — a challenge familiar to many of our clients operating in growth areas.
Flexibility Around Development Timing
While the VPA continues to discourage out-of-sequence development, the guidance acknowledges that there may be circumstances where this can occur. Flexibility is possible where agreements are reached between the developer and the relevant infrastructure authority, particularly where infrastructure commitments can still be met in a logical and coordinated manner.
How KLM Spatial Can Assist
With our deep experience in greenfield planning, infrastructure coordination, and land development intelligence, KLM Spatial is well-placed to assist developers in aligning their projects with evolving planning frameworks such as PSP 2.0 and the IDSP process.
Whether you’re preparing a submission, engaging with authorities, or reviewing infrastructure delivery obligations, our team can support you through every stage of the planning process.
Guidance Note: Infrastructure Coordination: Infrastructure and Development Staging
