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Victoria's Commercial Land Use Zoning

Productivity reform case study


At its 11 October 2019 meeting, the Council on Federal Financial Relations agreed that the Productivity Commission would prepare case studies on productivity reform within Australia to encourage knowledge sharing.

The purpose of these case studies is to inform and to diffuse knowledge and practices across governments, and identify reform opportunities. They are not intended to be an accountability mechanism or a benchmarking exercise that judges the performance of jurisdictions.

The first case study is on Victoria's commercial land use zones, which comprise:

  • the broad Commercial 1 and 2 zones, which were introduced in 2013 (with the merging of the previous five business zones) to provide greater flexibility and growth opportunities for commercial and business centres
  • the Commercial 3 Zone, which is a mixed-use employment zone introduced in October 2018 to facilitate the establishment and growth of creative industries, small-scale manufacturers and start-up businesses.

The case study will also touch on Victoria's industrial zones, which were amended in 2013 to provide more flexibility for office and some retail uses.

Objectives of the study

The case study will explore the implementation and impacts of changes to Victoria’s commercial zones over the past decade.

Expected release date

Mid 2020


Paul Loke 03 9653 2316