Residential developers building next to existing live music venues will have to foot the bill for sound-proofing under new planning changes to be introduced by the Victorian Government.

The "agent of change" principle, which will also apply to new music venues, will put the responsibility of noise mitigation on the new development, not the existing businesses and residents nearby.

Planning Minister Matthew Guy said once the new regulations are in place, established pubs and clubs will not be forced to close due to noise complaints from new neighbours.

"Should an apartment block or others move next door to an existing music venue, it is then incumbent upon those people to ensure they have adequate noise and soundproofing requirements in place for themselves, rather than putting that onus upon the live music venue," Mr Guy said.

Currently, if venues receive noise complaints it is their responsibility to upgrade the quality of sound-proofing, even if they were there first.

He said the reverse would also apply to new live music venues opening their doors near existing residential areas.

"We believe that's the straight forward, fair and common sense way to deal with the issue," he said.

Music to the ears of live venues

Patrick Donovan, the CEO of Music Victoria, welcomed the announcement, calling it a "really good move forward".

"Apartments have been going up at rate of knots and there's a number of venues that have been under threat," Mr Donovan told 774 ABC Melbourne.

"The best example is Cherry Bar down AC/DC Lane, where 101 Flinders St apartments has just gone up behind.

"One minute the venue is in compliance and has never had a complaint ... and with this apartment moving very close, suddenly it's out of compliance."

The bar was forced to turn to crowd-funding to raise money to upgrade its sound-proofing at the venue in order to comply with existing laws.

The owner of Cherry Bar, James Young, said the changes would see Melbourne remain the music capital of the world.

"It's a fantastic initiative because it makes Victoria a pace-setter. I can't think of another state in Australia, or city in the world, that has this kind of protection," Mr Young said.

"It will genuinely help and support live music venues.

"It's a bit late for Cherry Bar, but I'll take a bit of credit for bringing this issue to the boil.

"As frustrating as the councils and government have been in moving like a glacier, it's time for me to turn around and say I'm impressed.

"It's long overdue and really important protection to the music industry, which is a creative and social and economic industry."

Mr Young said he would take a look at the finer details of the principle, to see what, if any, challenges could be mounted by residential developers.

"It represents a huge shake up for developers and their responsibility. They're very powerful and wealthy organisations and I have no doubt they'll be looking at the changes closely," he said.

Best protection in Australia, Minister says

According to the Planning Minister, the changes mean Victoria will have the strongest level of protection for live music venues in Australia.

"We are doing absolutely everything we can as a government to ensure live music is vibrant and a strong part of Melbourne's cultural scene," Mr Guy said.

Planning Minister Matthew Guy said venues like the Tote would be protected under the changes. ( ABC News )

"We will [also] provide financial support for some of those smaller venues who need to accommodate existing provisions that also exist within planning schemes at a local council level as well.

"It's really about who was there first. So in the case of the Tote - that pub has been there for a long period of time - so if somebody is going to build near them they will have to adhere to the agent of change principle themselves, not the live music venue."

Mr Young was also supportive of the fact the same principle would apply to new venues.

"If I want to open a venue and plonk it right next to your house, I accept the responsibility is mine to contain the noise," Mr Young said.

"I think that's only fair. We just wanted that to apply to developers as well."

Mr Donovan said Music Victoria planned to follow up with the Government over the definition of a live music venue.

"We want live music to be live music in rehearsal studios, tap dancing studios and the like, to be protected as well because without actually being able to rehearse you don't actually get to get up on stage and show your chops."

Mr Guy said the Napthine Government would hold discussions with Music Victoria and other stakeholders about the issue.