Melbourne Mayors Gain More Zoning Power Than Sydney, Brisbane Under New Act

The Local Government (Planning and Governance) Amendment Act 2026 shifts final zoning decisions for medium-density projects back to elected mayors in Victorian councils while state governments in New South Wales and Queensland retain override powers for similar developments.

The reforms arrive as Melbourne councils prepare 2026-27 budgets that must meet state housing targets set under the Housing Statement. Local government analysts note the timing coincides with completion stages of the West Gate Tunnel and ongoing Metro Tunnel works, both of which cross multiple council boundaries.

How Melbourne rules differ from other capitals

Under the Victorian changes, mayors in the City of Melbourne and surrounding municipalities can approve or reject density increases above 30 dwellings per hectare without automatic ministerial call-in. In contrast, the New South Wales Environmental Planning and Assessment Act gives the Greater Sydney Commission final sign-off on equivalent projects, and Queensland's Planning Act 2016 allows the state coordinator-general to intervene in Brisbane council decisions.

For Melbourne residents this means planning applications lodged near stations such as Arden or Anzac could receive council determinations within 60 days rather than waiting for state panels. Households in growth corridors such as Wyndham or Casey therefore deal directly with their local mayor on issues including setback distances and parking ratios.

The 2025-26 Victorian budget papers record $47 million allocated to council planning teams to implement the new Act. Productivity Commission data from 2024 showed Victorian local governments already processed 18 percent more residential applications per capita than New South Wales councils in the preceding year.

Next steps for councils and residents

Councils must adopt updated planning schemes by December 2026. Residents can review draft schemes at public meetings scheduled by each municipality from August onward. The government says the policy will reduce duplicate assessments between state and local bodies.