Building on the scientific literature, this article first summarises the socio-environmental impacts of land-use change expected to occur in high amenity Australian peri-urban areas, involving in particular, the effects of land development on agriculture, biodiversity, landscape character, bushfire risk and social factors. Second, the current spatial planning framework and its distribution in seven municipalities in Victoria, Australia, is critically analysed, and records of approved planning permits are related to this framework to assess the challenges posed by peri-urban growth. We argue that the current planning framework supports a static approach which does not address foreseen challenges and lacks strategic power. Both the strategic framework and the development approval process lead to unanticipated, cumulative impacts and contestation. A more coordinated, less urban-centric approach to planning and the introduction of rural land-use plans would substantially address some of the issues encountered.