It was created on 1 January 2015 by the government of Premier Daniel Andrews when the number of government departments was reduced from 9 to 7, and assumed responsibility for ministerial portfolios previously spread across 5 departments.
The department was established after the 2014 Victorian state election by the new Labor government, using the powers of the Premier of Victoria and the Governor-in-council under the Public Administration Act 2004 and the Administrative Arrangements Act 1983.
[2] Its establishment was part of a reorganisation of the Victorian public sector which combined the functions of 9 departments into 7, following a similar process after the 2010 election which reduced the number of departments from 11 to 9.
[4] An inquiry into the changes was launched by the Legal and Social Issues Committee of the Victorian Legislative Council in 2015.
The inquiry was told that the new, larger department was better able to collaborate and promote "liveability" through its functions.