The announcement has been welcomed by the VFF, which it says will enable farmers to better manage livestock, improve productivity and aid in managing livestock health.
Virtual fencing uses GPS systems and wireless technologies to remotely map and control livestock grazing behaviour without the use of fixed fences.
Victorian manufacturers can now apply to Agriculture Victoria for their virtual fencing technology to be approved, with the first products expected to be approved in early February 2026. The approval conditions will include requirements for record keeping and reporting.
Farmers adopting this technology, which uses collars with GPS and wireless technology to control livestock without physical fences, will need to comply with certain requirements — using approved technologies, completing manufacturer training, maintaining a physical boundary fence or barrier and ensuring collars are checked regularly.
VFF president Brett Hosking said the long-awaited decision was set to transform farm management, animal welfare and industry sustainability in one of Australia’s largest livestock sectors.
“This is a huge step forward that will deliver real, on-farm productivity and welfare benefits for dairy and livestock farmers across Victoria,” he said.
“We’ve been working hard to get to this decision from the very beginning. Victoria’s livestock and dairy sector is poised to see productivity gains in excess of tens of millions of dollars and is now ready to step into the future.
“This announcement is the culmination of years of behind the scenes work and we thank Minister for Agriculture Ros Spence for backing this technology and working with us to get it done.”
United Dairyfarmers of Victoria president Bernie Free said the green-lighting of the technology would help ensure Victoria’s dairy industry had certainty it needed to innovate and remain globally competitive.
“Virtual fencing technology is an absolute game-changer for Victorian dairy farmers. It allows farmers to rotate pastures more efficiently, protect environmentally sensitive areas, improve animal health outcomes and provides a safer work environment,” he said.
“Victoria is already Australia’s dairy industry powerhouse. This move is set to reinforce that mantle and set the platform for the potential of huge growth in our local sector.”
Ms Spence announced the new regulations under the Prevention of Cruelty to Animals Act 1986, giving farmers access to virtual fencing and herding technology.
The new regulations were developed following engagement with industry, manufacturers, researchers and animal welfare groups on virtual fencing to better understand the impacts of this technology on animal welfare.
A demonstration of virtual fencing technology took place at Agriculture Victoria’s Ellinbank SmartFarm in Gippsland between July 2024 and May 2025 — giving farmers a better understanding close to home.
Dairy cattle were fitted with solar-powered smart collars that use audio, vibration and electronic cues to contain animals within a virtual fence and guide them to areas of the farm via a mobile phone app. The system also allowed farm staff to monitor the cows’ location, health and reproductive status.
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