In April last year, we explored several key aspects of this landmark infrastructure initiative in our article, "Victorian Government announces plan to build 70,000 additional homes: Suburban Rail Loop East precincts to support growing population."

For those unfamiliar, SRL East is the first stage of the broader Suburban Rail Loop, currently being delivered between Cheltenham and Box Hill. It includes 26 kilometres of twin tunnels and six new underground stations. Comprehensive planning for the surrounding neighbourhoods aims to facilitate the development of approximately 70,000 new homes by the 2050s, positioned within easy reach of world-class public transport, essential services and employment hubs.

The 'structure plan areas' involved in the SRL East Project are Cheltenham, Clayton, Monash, Glen Waverley, Burwood and Box Hill, encompassing various municipalities within each area. Since the publication of our previous article, the project has seen significant progress. In particular, the precinct visions have been finalised following public consultation, the draft structure plans and draft amendments have now been released, and the authority has confirmed that public hearings will commence from 27 August 2025.

The SRL East Project is a major undertaking by the Victorian Government, and it is not possible to cover all elements within a single article. As such, while this article touches on the draft amendments, draft structure plans and the upcoming hearings, it focuses in particular on the mandatory maximum floor area ratio (FAR) proposed by the draft amendments, as well as the Suburban Rail Loop East Voluntary Public Benefit Uplift Framework (Uplift Framework).

To summarise, the draft structure plans set out the objectives and strategies for each structure plan area. The draft structure plans are underpinned by five themes: 

• Enriching Community

• Boosting the Economy

• Enhancing Place

• Better Connections

• Empowering Sustainability 

Whilst the draft structure plans outline the ambitious goals of the SRL East Project, the draft amendments provide the actual mechanism to introduce planning policies and controls which will guide the development of land within each of the structure plan area. These amendments give effect to section 4(1) of the Planning and Environment Act 1987.

Relevantly, the draft amendments propose to apply the precinct zone to the 'majority' of the structure plans areas. Notably, the precinct zone proposes to apply a mandatory maximum FAR.

A FAR is the ratio between the amount of above ground 'gross floor area' that can be developed on a particular site, relative to the area of that site. The FAR is defined in the proposed schedules to the precinct zone, as follows: 

For the purposes of this schedule, the floor area ratio is the gross floor area above ground of all buildings on a site, including all enclosed areas, services, lifts, car stackers and covered balconies, divided by the area of the site. Void associated with lifts, car stackers and similar services elements should be considered as multiple floors of the same height as adjacent floors or 3.0 metres if there is no adjacent floor.

For developers seeking to exceed the mandatory maximum FAR (where it applies to the land), they must satisfy the responsible authority that a public benefit can be established as provided for and calculated in accordance with the Uplift Framework. 

The Uplift Framework supports the implementation of the draft structure plans and identifies the following public benefits:

1. affordable housing;

2. public realm improvements;

3. open space; and 

4. strategic land uses.

​​​​FARs and uplift schemes have previously been implemented in other parts of Victoria, most notably in the Melbourne CBD and Fisherman's Bend. 

On one view, a FAR and uplift scheme can be seen as a blunt tool; operating as a 'one size fits all' approach. A FAR and uplift scheme can, in some cases, hinder optimal development opportunities and the realisation of the site's potential. This is particularly apposite with respect to sites that have unique characteristics such as land area, heritage buildings, environs and other geographical factors. 

On the other hand, for specific sites and areas, a FAR can enable positive outcomes, provided that the site can be developed feasibly and economically in accordance with that FAR. FARs also offer the additional benefit of enabling certainty of outcome for developers and community stakeholders. 

To summarise, we suggest that in order for a FAR to be effective, several factors must be realised, namely that:

• the base case FAR is appropriate and the development of the site can feasibly occur; and

• the proposed FAR provides an appropriate urban design and planning outcome, in particular in terms of scale and form; 

• the FAR achieves the expected housing demands for the area; and 

• if the uplift framework is to be applied, the government, community and developer all benefit from the application of the uplift framework. 

Fundamentally, we think that a considered approach should be taken when applying FARs over precincts or parts of a precinct, to ensure that the FAR responds appropriately to the characteristics of that precinct. In our view, it is important that FARs are not intended as a 'blanket approach' as this risks producing suboptimal planning outcomes.

Panel hearing 

The authority has announced that a directions hearing will be held on 22 July 2025 and that from 27 August 2025 onwards, public hearings will be held by the independent advisory committee. These hearings will give developers, council's and other affected persons the opportunity to provide submissions and evidence regarding the draft amendments and draft structure plans. 

If you are a land owner within one of the structure plan areas and would like to understand how the SRL East Project may affect your property or development opportunities, we encourage you to reach out to our Planning, Government, Infrastructure & Environment team for further advice and support.