The Victorian Government has announced sweeping reforms to the state’s existing business and industrial zones, with State Planning Minister Matthew Guy saying that the changes will drive productivity and employment growth.

Mr Guy said that the reforms will allow for land to be redeveloped for its highest and best use.

“These reforms untangle the complex web of business zones in Victoria, replacing them with a common sense approach to our commercial areas,” Mr Guy said.

“Five existing business zones will be consolidated into two commercial zones – one will provide for diverse mixed uses including retail, office and residential, while the other will be a flexible employment-only zone.

The reforms form part of the State Government’s response to the Ministerial Advisory Committee into Reformed Commercial and Industrial Zones.

“These reforms will encourage greater employment growth in the suburbs, reducing commuting pressures over time, and contributing to the objective of a 20-minute city, one of the key priorities for the Coalition Government’s Metropolitan Planning Strategy.”

The Commercial Zone 1 replaces the existing Business 1, 2 and 5 Zones and is designed to create vibrant mixed use commercial centres for retail, office business and higher density residential growth. It will unlock 870 hectares of land in greater Melbourne for growth in retail, office and residential development. In regional Victoria, 500 hectares will be unlocked by the reform.

The Commercial Zone 2 replaces the existing Business 3 and 4 Zones with the purpose of developing areas for appropriate office and industrial uses, bulk goods retailing and other commercial services. The Zone will provide increased commercial employment opportunities, including new office space on 3,400 hectares of land in greater Melbourne, and 1,400 hectares across regional Victoria.