When creating a vacant lot through the realignment of common boundary for a VicSmart application, by meeting the standards of C8, you will meet the objective. That is, you do not need to state that you are meeting the objective.
If you are interested, the Victorian State government objective for this Clause is listed below:
The objective of Clause 56.02 Standard C8 is to provide lots with areas and dimensions that enable the appropriate siting and construction of a dwelling, solar access, private open space, vehicle access and parking, water management, easements and the retention of significant vegetation and site features.
Derived from Planning Schemes Online –Victoria Planning Provisions by the State of Victoria