Planning vs Building Permits: Do not confuse permission to use land with permission to build
A common beginner mistake is to hear the word “approval” and assume every approval does the same job.
In reality, a property development can need more than one kind of permission. One pathway may deal with whether the land can be used or developed in a certain way. Another may deal with whether the building work complies with construction requirements.
The approval name is not the strategy
The Victorian Building Authority explains that a project may require a planning permit, a building permit, or both. It describes planning permits as permission to develop or use land in a particular way, while building permits certify that proposed building work complies with building regulations.
Queensland uses its own development assessment system, with categories such as accepted and assessable development. NSW uses development applications, complying development pathways and construction certificates in different circumstances. The names change, but the due-diligence discipline does not.
Questions to ask before you rely on an approval assumption
- What jurisdiction and council area is the property in?
- What exact development or use are we testing?
- Is the proposal accepted, exempt, code-assessable, impact-assessable or subject to a local permit pathway?
- Does the planning approval need to be obtained before building approval?
- What documents, reports and neighbour or referral processes may be required?
- What conditions could change cost, timing or design?
A practical scenario
A buyer wants to add a second dwelling behind an existing house. A builder says the block has room and can price the construction. That may be useful, but it is not the same as confirming that the planning scheme allows the proposed use, access, parking, private open space, overlooking, stormwater and title outcome.
The better sequence is to test planning permission, service constraints and likely conditions before treating the building price as the full answer.
TPC deal lens: split the approval risk
In the feasibility, separate planning risk from building risk. Planning risk asks whether the proposal can be approved on the land. Building risk asks whether the approved design can be documented, built, inspected and occupied at the expected cost and quality.
When those risks are mixed together, investors often buy on a false sense of certainty.
Key Takeaway
Approval names matter because they point to different decision-makers, documents, risks and costs. Before buying, identify every approval pathway the deal depends on and get the right adviser to test each one.
Your Turn
Which approval assumption in your current deal is still just a verbal comfort rather than written, source-backed evidence?
Sources and boundaries
Sources checked 16 September 2026.
- Victorian Building Authority — Planning and building permits Used for: Victoria guidance explains that projects may require a planning permit, a building permit or both; planning permits allow development or land use in a particular way, while building permits certify compliance with building regulations. (Checked 16 September 2026)
- Planning Victoria — Guidance for applying for a planning permit Used for: Most Victorian planning permit applications are made to local council, with some made to the Minister for Planning. (Checked 16 September 2026)
- Queensland Government — What is development assessment? Used for: Queensland development assessment categorises proposals and local governments usually assess development applications through local planning schemes. (Checked 16 September 2026)
This article is general education, not personalised planning, legal, financial, tax, privacy, safety or building advice. Requirements and outcomes vary by jurisdiction, site, contract, structure and circumstances. Check current information with the relevant authority and appropriately qualified advisers.
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Frequently asked questions
Is a planning permit the same as a building permit?
No. Names vary by jurisdiction, but land-use or planning permission and construction/building approval perform different jobs and may both be required.
Which approval comes first?
Often the planning pathway must be resolved before building approval, but the sequence depends on the jurisdiction, proposal and approval type.
Can a builder confirm planning approval?
A builder can identify construction issues, but planning permission should be checked with the relevant council, planner or approval authority.
Why does this matter before buying?
Because a site may be physically buildable but not permitted for the intended use, or permitted in principle but still expensive or difficult to document for construction approval.
Can I price a project after only one permit is checked?
Be careful. A project may need both land-use planning approval and building approval, plus engineering, service and occupation steps. Price the sequence, not just the first approval name you hear.
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