The application was to subdivide land at 115 Penshurst-Warrnambool Road into two lots - one 2.834 hectare block and one 1.518 hectare lot.

A report presented to councillors recommended voting against the proposal because it would affect productive agricultural land.

Cr Purcell asked when the council was expecting to receive a report on its proposed C70 planning scheme amendment, which will guide the use and development of agricultural land.

He was advised it was expected to be considered shortly.

This prompted Cr Purcell to say he would vote against the motion.

"I have a lot of sympathy for the applicant," Cr Purcell said.

"Considering we're so close to having the C70 passed I think we would be foolish not to support the officer's recommendation."

The motion was supported by Crs Daniel Meade, Damian Gleeson, Jordan Lockett and Jim Doukas.

Councillors were told the applicant had decided on the size of the two lots due to the odd shape of the allotment.

Cr Meade said he understood the reason behind the varying sizes of the two lots.

"It's been mentioned that the applicants have been waiting for some time and it's an opportunity to have another dwelling in the shire," he said.

"We know we have severe shortages of housing to attract workers to our shire.

"We have many people looking to move but we don't have enough houses and this is another opportunity to remedy that."

Cr Meade said he did not believe the development would have a negative impact.

"It certainly hasn't been productive land for some time," he said.

Cr Meade also made note there had been no objections to the proposal.

Cr Gleeson also spoke in support of the application.

"In light of the adjoining properties, to me it just makes sense," he said.

Cr Karen Foster, mayor Ian Smith and Cr Purcell voted against the application.

Cr Foster said she would have supported it if both lots were a minimum of two hectares.

The proposal includes a second dwelling on the smaller lot in the subdivision.

It would be a single storey three bedroom home.

Councillors were told at the meeting they could expect to receive a report on the proposed C70 planning amendment in a matter of months.

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