In order to complete a real estate development, the developer is required to obtain both planning permits and building permits. To a layman, these terms may seem interchangeable, and this isn’t helped by the fact that each State calls them different things anyway. But planning permits and building permits are different documents that come from a different authority at different stages of the project. So let’s explain the difference between a planning permit vs building permit.

What’s the difference?

The simplest way to think about the difference between planning permits and building permits is to understand what each one is trying to accomplish.

Planning permits are trying to ensure that someone doesn’t build something that negatively impacts the neighbourhood.

Building permits are trying to ensure that when something is built, it won’t collapse six months later.

What is a planning permit?

In the timeline of a development project, a developer needs to obtain planning permits first. Planning permits are a legal document from the local Council that allow for a particular site to be used or developed in a particular way.

Let’s say a developer has a piece of land and they want to knock down the existing building and build some townhouses in its place. The developer would have to submit plans to the Council showcasing what they want to build: how many townhouses, how they fit together on the site, where driveways and parking spaces will be, how tall the structure will be, does it block the sun, can you spy on the neighbours; things like that.

The Council will look at the plans, and after a few months of back-and-forth with the developer, make a decision about whether they will issue a planning permit or reject the submission.

What is a building permit?

It’s only after a planning permit has been received that the developer will start working on the documents required for the building permit. Whereas the planning permit is issued by the Council, the building permit is issued by a building surveyor. The building surveyor checks that the development meets the Building Code of Australia and any other requirements in the jurisdiction.

Before they issue a building permit, the surveyor checks the engineering drawings down to the smallest details. These drawings are made by multiple expert consultants, including a geotechnical engineer, a civil engineer, a structural engineer, a water supply authority, an electricity supply authority, a House Energy Rating Scheme assessor, and a Chief Fire Officer.

If the building surveyor is happy that the development meets all requirements, they will then issue a building permit, which signals that construction can start.

Now you understand what the difference is between a planning permit vs building permit, and why a developer must have both in order to start building. ∎

For more information about the property development process, make sure to download our Property Development Guide.