Victoria's Housing Affordability Bill targets planning delays, but Geelong advocates warn supply alone won't fix crisis

The Victorian government's Housing Affordability and Planning Reform Bill 2026, introduced to parliament last week, proposes mandatory social and affordable housing inclusions on all new residential subdivisions over 50 lots and a binding 60-day approval timeline for medium-density projects. For Geelong, the state's fastest-growing regional city after the City Deal investments, the bill would apply directly to major projects in Armstrong Creek expansion areas and the Geelong West infill precincts.

Local housing policy analysts say the legislation could accelerate delivery on the 10,000 new dwellings the Geelong City Deal promised by 2029, but they caution that faster approvals don't automatically lower prices. The bill also includes a new Housing Affordability Levy on foreign purchasers and vacant land, revenue the government says will fund shared-equity schemes for first-home buyers earning under $95,000 a year.

What the bill means for renters and homeowners in Geelong

For Geelong residents, the 60-day approval clock is projected to cut typical project delays by more than a third, according to the bill's regulatory impact statement. But local community advocates note that the current median rent in Geelong is $480 per week, up 8.1 per cent year on year, while the median house price sits at $725,000, locking out households earning less than $120,000, according to Suburbtrends data from June 2026. The bill's social housing mandate would require projects of 100 or more dwellings to include at least 15 per cent affordable rental housing. The government says this will generate approximately 3,500 new affordable homes statewide by 2031, with around 500 expected in the Barwon region.

Deakin University urban policy researcher Dr. (attribution only: 'local urban policy experts') said the levy's projected $47 million annual revenue is welcome but insufficient to address a rental vacancy rate hovering around 1.2 per cent in Geelong, according to Real Estate Institute of Victoria June data. The experts said without parallel reforms to rent stabilisation and tenant protections, the bill risks delivering new supply at prices most Geelong households still can't afford.

Environmental and infrastructure concerns linger

The bill also overrides local council planning schemes for projects deemed of 'state significance', a clause Geelong sustainability groups say could conflict with the Surf Coast environment plan's vegetation protections and Stormwater management overlays. The legislation states that fast-tracked projects must still meet minimum environmental standards, but local advocates point out that the 60-day timeframe may limit thorough community consultation on developments near the Barwon River riparian zones.

What happens next: The bill has been referred to the Legislative Council's Environment and Planning Committee, which is due to report by August 28, 2026. A public hearing is scheduled for July 24 in Geelong Town Hall. The government expects the final act to take effect on January 1, 2027. Policy analysts say the key amendment to watch is a push from crossbench MPs for binding tenancy reforms to be inserted into the same bill, rather than left for a separate instrument later this year.