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Liberals and Nationals to audit Latrobe Valley coal overlays to unlock land for housing and industrial development

The Liberals and Nationals will audit Latrobe Valley coal overlays to identify outdated restrictions, potentially unlocking land for housing and industrial development while retaining protections where mine safety and ground stability remain at risk.

By news@gippsland - 23rd October 2026 - Back to News

The Liberals and Nationals in government will look to unlock land for housing and industrial developments by auditing all remaining coal overlays in the Latrobe Valley. The independent, evidence-based audit will identify any redundant or excessive overlays that can be removed via a planning scheme amendment process, and retain those where mine safety or ground stability are at risk.

The Liberals and Nationals plan to review Latrobe Valley coal overlays, removing outdated restrictions to unlock land for housing and industry while retaining safeguards where mining safety and ground stability remain concerns

Reviewing coal overlays

The process will prioritise amendments to unlock land for housing and economic development, consistent with earthworks studies already commissioned by Latrobe City Council. The overlays were introduced more than 40 years ago to protect future coal resources when it was envisaged the region would be home to dozens of power stations, with only four eventuating.

The Nationals’ Member for Morwell, Martin Cameron, said the review was long overdue and a critical step in attracting investment back to the Latrobe Valley. "Our brown coal has powered Victoria for more than a century, but the overlays in place now are nearly 50 years old and some of them are no longer relevant. This review is about assessing which land can be sensibly rezoned and used for housing and industrial development, both of which are desperately needed in the Latrobe Valley."

"The Liberals and Nationals in government will balance the need to maintain access to our coal reserves with the need to unlock land where coal can’t be mined so we can get on with growing our economy. Some of the planning overlays are obsolete and prevent construction of the Traralgon bypass, locking up land in Morwell and Hazelwood North, and wasting land that could be used for housing," Mr Cameron said.

Unlocking Traralgon housing

The South East Traralgon Precinct (SETP), an area of 187 hectares on the edge of town, has been identified as a residential growth zone where up to 2000 homes will be built. The southern boundary of the SETP is covered by coal overlays that prohibit development within two kilometres of the Loy Yang mine.

Deputy Leader of the Opposition and Shadow Minister for Planning and Housing, David Southwick, said only The Liberals and Nationals are committed to enabling growth in the regions and driving growth back to the Valley. "If the review deems it’s appropriate, we plan to change that buffer to one kilometre to enable the construction of 2000 shovel-ready homes," Mr Southwick said.

Unlocking regional development

Mr Southwick added, "Right now, millions of dollars’ worth of development is sitting idle in the Latrobe Valley because of outdated planning overlays. We want every Victorian to have the best opportunity to own their own home, and we want new industries to invest, but that can’t happen if projects can’t get off the ground."

"Only the Liberals and Nationals team has a plan to deliver more homes, streamline planning processes, and revive the Victorian economy. Part of this plan is to review outdated planning overlays that will deliver more housing," Mr Southwick said.

Pictures from Martin Cameron MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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• Productivity Commission backs Peri Urban Councils' call for infrastructure before housing targets across Victoria
  The Productivity Commission has backed Peri Urban Councils Victoria's call to link housing targets with funded infrastructure, supporting development, coordinated planning and financing for 85,450 new homes across five Victorian growth councils.
• Have your say on the Planning Scheme Amendment C161egip - Lakes Entrance Northern Growth Area (Revised) to unlock growth until 21 September 2026
  East Gippsland Shire Council is simplifying planning controls in Lakes Entrance Northern Growth Area, aiming to unlock housing growth, reduce red tape and support development over the next 30-plus years.
• Darren Chester says Labor's national firearms buyback unfairly targets law-abiding regional firearm owners instead of addressing crime and security
  Nationals representatives Gemma Rendell, Darren Chester and Bridget McKenzie joined East Gippsland firearm owners in Bairnsdale, opposing Labor's buyback and further restrictions while supporting lawful firearm use in regional communities.
• Darren Chester demands urgent Labor investment to fix dangerous Princes Highway and Gippsland arterial roads
  Darren Chester urged Labor governments to urgently fund Gippsland roads, citing dangerous conditions, poor maintenance and reduced investment while highlighting previous Coalition funding for highway and arterial road upgrades.
• Wellington Shire Council secures $2M for road safety improvements across five Gippsland towns before mid-2027
  Wellington Shire Council has secured $2 million for road safety upgrades across Maffra, Stratford, Sale, Wurruk and Heyfield, with works beginning before Christmas and completion expected by mid-2027.
• Wellington Shire Council updates flood mapping to improve safety, planning, climate resilience and development decisions across the municipality
  Wellington Shire Council is updating flood mapping and planning controls, incorporating climate impacts, to improve safety, guide development and manage flood risks. Public submissions close 2 November 2026.
• Darren Chester blames Labor-Greens timber shutdown as Maryvale Mill job losses hit Gippsland workers and families
  Federal MP Darren Chester says 84 more Maryvale Mill job losses stem from Labor-Greens forestry policies, urging state and federal governments to fund an economic transition plan for the Latrobe Valley.
• Matthew Canavan welcomes Commonwealth Bank branch extension, calls for stronger government action to protect regional banking services
  Nationals leader Matt Canavan welcomed Commonwealth Bank’s decision to keep 281 regional branches open until 2030, while urging the Government to protect banking access and rebuild services lost elsewhere.
• Melina Bath calls on Labor to protect locally raised foreshore funds and community priorities across Eastern Victoria
  Nationals MP Melina Bath has urged Labor to guarantee $500,000 raised by San Remo residents remains dedicated to local foreshore projects following committee merger concerns.
• Melina Bath accuses Labor of failing to curb illicit tobacco crime and escalating violence across regional Victoria
  The Nationals have criticised Labor over ongoing illicit tobacco crime, citing alleged abductions, violence, intimidation and suspected illegal stores, while questioning Victoria’s tobacco licensing scheme effectiveness.
• Martin Cameron slams fresh Bank Street traffic light delays as environmental studies push project back again
  The Nationals have criticised the Victorian government after environmental studies and cultural heritage approvals were blamed for fresh delays to long-promised traffic lights at Traralgon Bank Street intersection, despite years of funding.
• Silcocks Hill Road in Toora reduced to single lane for four to six weeks during landslip repairs
  Silcocks Hill Road in Toora will operate under single-lane conditions for four to six weeks from August 17 while landslip remediation works are completed, with motorists urged to allow extra travel time.
• Moe Town Hall seeks resident organisation to activate historic venue through regular community arts programs until 30 September 2026
  Latrobe City Council has opened expressions of interest for an organisation to establish an ongoing residency at Moe Town Hall, delivering regular arts, cultural and community activities while keeping the venue accessible.
• Live and Loud at GPAC brings AFL Grand Final action, family fun and entertainment to Traralgon on 26 September 2026
  Latrobe City Council will host Live and Loud at GPAC on September 26, featuring family activities, entertainment, a ticketed musical-acrobat performance and free live screening of the 2026 AFL Grand Final.
• Moe Inline Hockey Championships secure five-year council funding, expected to boost $15M into local economy through visitor spending
  Latrobe City Council will provide $100,000 over five years to support Moe’s Australian Inline Hockey Club Championships, expected to generate $15 million locally through visitor spending and accommodation.
• New Bairnsdale worker accommodation nears completion, boosting healthcare workforce capacity across East Gippsland communities
  Bairnsdale new 28-apartment healthcare worker accommodation is nearing completion, providing affordable housing for up to 32 staff and strengthening regional health services while supporting local jobs and investment.
• Paynesville Council seeks $4M for intersection upgrades to unlock 1,400 new homes
  Paynesville's $4 million intersection upgrade proposal aims to improve road safety, ease congestion and unlock around 1,400 new homes in the town's growth area.
• Victorian government funding to help Drouin West Timber and Truss expand production, create jobs and boost housing supply
  Victorian government funding will help Drouin West Timber and Truss expand production with robotics, create six jobs, boost housing construction capacity and strengthen Gippsland's local building supply chain.
• Labor invests $120,000 to modernise Traralgon Library with new study pods and improved community spaces
  Harriet Shing joined Latrobe City Mayor Cr Gibson and councillors to announce a $120,000 library upgrade, jointly funded by government and council