THE Victorian Civil and Administrative Tribunal (VCAT) has upheld the State Government's decision to grant planning approval for a mixed commercial and residential development in Southbank.

The application was initially approved by Planning Minister Justin Madden in April this year but was appealed by Melbourne City Council, on grounds that it failed to meet the objectives and requirements of the Melbourne Planning Scheme.

The Council also objected to the development due to excessive building bulk, inadequate separation from other towers within the site and relative to future developments and potential for adverse wind effects.

The application, at 68 – 82 Southbank Boulevard, is for a 62-storey (226 metres) building containing dwellings, offices, a gym, café, a supermarket and shops. It was designed by architects Fender Katsalidis and will feature 532 apartments and six levels of office space.

In the decision, handed down last week, VCAT found that "the proposal for a 226 metre high mixed use building is consistent with State and Local Planning Policy Frameworks and that it does achieve the design objectives and built form outcomes set out in the DDO39."

Future Melbourne (Planning) Committee Chair, Councillor Peter Clarke said that while the council "is generally supportive of the architectural quality of the proposal, the height of the proposal of 226 meters is more than double the discretionary height limit."

He said Melbourne's draft Southbank Structure Plan would be presented at the Future Melbourne Committee on Tuesday, 7 September, recommending that buildings within the precinct remained within the discretionary height limit of 100 metres to protect the amenity of the area.

"Council will look to bolster height limits and bulk restrictions through our review of the Melbourne Planning Scheme," Cr Clarke said.