The 236m, 71-storey tower will feature 586 apartments, increasing the number of completed or approved vertical homes in the neighbourhood to 2,945.
The tower will also feature communal meeting rooms, a pool, a spa, function rooms, and lounges, as well as bars for residents and guests.
Victoria Minister for Planning Matthew Guy said that The Falls tower will be situated between the approved 276m Queensbridge Tower and the currently under construction 255m Prima Pearl Tower.
"Southbank is becoming a true vertical community, with hundreds more Melburnians expected to call The Falls home, in a precinct that has seen huge population growth over the last twenty years," Guy said.
The ground floor of the tower will feature retail space to add a community aspect and contribute to the vitality of the Southbank area.
The Victorian Government is planning to expand the Melbourne central business district fivefold with the next generation of tall buildings at Docklands and Fisherman’s Bend.
Southbank already features the 297.3m Eureka Tower on a 52,724ft² site designed by Fender Katasalidis Architects and is one of only three buildings in Melbourne set to remain taller than The Falls once it is completed.