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Eltham Activity Centre Zoning Rules and Permit Exemptions

Residents in the Eltham Major Activity Centre and nearby residential zones face changes in how 2-to-8 storey proposals are assessed under current planning exemptions.

By Eltham Policy Desk · Published 25 July 2026

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. Melbourne Weather News is part of The Daily Network and follows our reasonable editorial care.

Planning permit exemptions under VC267 and VC280 now apply to buildings between 2 and 8 storeys in residential zones and the Eltham Major Activity Centre. These exemptions remove the right for objectors to appeal to VCAT when projects meet the stated criteria. The Eltham Major Activity Centre operates under Activity Centre Zone Schedule 1, with Amendment C143 directing higher-density mixed-use outcomes in areas such as Precinct 3.

Current zoning framework and recent changes

Eltham's zoning falls under the Nillumbik Planning Scheme established by the Planning and Environment Act 1987. Most surrounding countryside remains in the Green Wedge Zone, which limits subdivision and intensive development. Amendment C126nill recently rezoned the eastern ends of Bridge Street and John Street from Neighbourhood Residential Zone to Public Park and Recreation Zone, increasing local parkland. The Eltham Gateway area along Main Road is covered by Design and Development Overlay Schedule 1, which sets design guidelines for offices and medium-density housing.

These rules determine where new buildings can be proposed and how quickly applications move through assessment. The exemptions shorten certain review steps for qualifying projects in the Activity Centre and residential zones, while the Green Wedge Zone continues to constrain growth outside the designated centre.

What the rules mean for residents

Households near the Activity Centre or along streets covered by the new parkland zoning may encounter development applications that proceed without a VCAT hearing if they satisfy the exemption conditions. Properties in the Gateway area must still comply with the overlay's design requirements for mixed-use character. Residents outside the centre but within the Green Wedge Zone face ongoing restrictions on subdivision and intensive uses.

The combination of zone schedules, overlays and exemptions shapes where medium-density housing and offices can locate. Projects meeting the 2-to-8 storey criteria in the Activity Centre or residential zones follow a streamlined path, while parkland expansions on Bridge Street and John Street remove those sites from future residential zoning.

Further applications will be assessed against the existing Nillumbik Planning Scheme provisions. The government has indicated that Amendment C143 will support transport-oriented development in Precinct 3, with outcomes determined case by case under the current exemptions and overlays.

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