This analysis refutes the claim that Victorian local councils approve 98% of housing permits. Its findings show that metropolitan Melbourne councils approve on average less than three-quarters of permits for new dwellings. The analysis confirms that council planning processes and decisions are a significant bottleneck in housing delivery. It proposes that a move towards consistent, metropolitan-wide planning rules are critical. 

Key findings

• 'Missing Middle' projects (6 to 50 dwellings) have the lowest approval rates at just above 60% of dwellings being approved by councils.
• Permit rates are highest for projects with very few new dwellings or more than 50 dwellings.
• On average, 70% of new dwelling permits are approved across metropolitan Melbourne.
• 30% of dwelling permits rejected by councils eventually get approved at the Victorian Civil and Administrative Tribunal (VCAT).
• More than two-thirds of the permits rejected by four councils – Glen Eira, Bayside, Stonnington and Melbourne – are later approved at VCAT.
• Planning approval rates and timelines have not improved since 2015.