'A political statement': North East mayors criticise Victorian housing targets

Premier Jacinta Allan and Planning Minister Sonya Kilkenny, on Sunday, June 16, announced their proposed housing targets for local government areas, which they say could lead to the construction of 2.5 million new homes across the state by 2051.

Under the draft targets, the number of homes in Wodonga will increase from 18,900 in 2023 to 33,300 in 2051 - a rise of 76 per cent.

Wangaratta Council is tasked with accommodating 5700 new homes by 2051, while Alpine Shire will need to provide space for 1700 new dwellings.

To accomplish these ambitious targets, councils are being urged to unlock space for more homes by proposing changes to local planning rules.

Alpine Shire mayor John Forsyth criticised the targets as "a political statement that means nothing".

"Firstly, the planning rules are set by the state," he said.

"In order to get things rezoned, it has to go through the state. Changes to the planning schedule sit with the minister. Councils can put them in, but it can take 18 months before anything actually happens.

"So it's fine to say, put it onto councils, they can change it. We can't just change it with local laws. It's a planning scheme. In order to get the changes to the planning scheme, it takes a fair bit of work from a council point of view, and then it has to go through the state government, and then it gets ratified by the minister."

Mr Forsyth said the council was "sitting comfortable" with the number of potential residential blocks for future housing.

However, he said it was ultimately up to referral agencies such as the CFA and the water authority to determine if a home could be built in a particular location.

"If CFA and the water authority says no, then it theoretically can't happen," he said.

"We're lacking in services at the moment, and the water authority is madly trying to catch up with just what we have got on the books. If they can't supply the service, people can't build the stuff."

The housing targets were discussed at the Wodonga Council meeting on Monday, June 17.

Councillor Libby Hall contrasted the push to build 14,400 new homes with the state's unwillingness to bankroll a new Border hospital to support a growing population.

"Ironically here we are as a council advocating for a new single-site hospital ... that ... will significantly increase beds and the health service for our region going forward, but we are being largely overlooked and ignored," Cr Hall said.

"How can you even look at even increasing our population without the desperately needed infrastructure that needs to go with a population of such increase?"

Leon Schultz, Wodonga Council's director of infrastructure and growth, said the council had not been briefed on the "implications or assistance packages" which might be available from the state government.

"During the period 2013-2014 to 2023-2024, 3872 new rateable dwellings were constructed at an average of approximately 350 dwellings per year. The recent announcement will see the requirement of 550 new dwellings being built and occupied each year (an increase of approximately 55 per cent)," he said.

"Increased housing carries implications that extend beyond the provision of the physical dwellings and substantial support will be needed to provide the infrastructure required to adequately service a growth area, including water, sewerage, electricity and other recreational and community-based amenities.

"Wodonga Council is in a relatively strong position in that it has adequate zoned residential land, which includes the Leneva Baranduda growth area, where approximately 20km2 of residential land could see in the order of 15,000 new dwellings constructed over time. At this time, it is not foreseen that changes to the local planning scheme are necessary."

Wangaratta mayor Dean Rees said his council had "hundreds of acres that have already been rezoned", and enough supply for the next 15 to 20 years.

However, he called for more incentives for developers to build houses.

"People have stopped building houses now because it's too expensive," he said.

"There's stamp duty, there's land tax, all those things on housing are just too expensive now. That's the reason why there's developments approved everywhere in Wangaratta, in Melbourne, but they're just not building it because the cost to build it is too exorbitant.

"That's the reason why housing is at such a shortage."

Indigo Council was contacted for comment after the government announcement.