Dealing with Construction Permits in
Australia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
AUD 976,000
- City: Sydney
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
The local council determines if a development application is required
Most environmental and planning law in Australia varies from one Australian State to another. In Sydney, in the state of New South Wales, development will generally be assessed under one of three regimes in the Environmental Planning and Assessment Act 1979 (Planning Act). Part 3A, Part 4, or Part 5 State regional and local planning instruments (and certain Ministerial orders) made under that Act will determine which regime applies.
The warehouse to be constructed by BuildCo is most likely to fall under Part 4 and most likely require development consent from the relevant local council. Part 3A applies to major infrastructure and other projects of State or regional significance. Part 5 is usually applicable in infrastructure projects and linear developments that range over more than one local government area. Part 3A and Part 5 set out their own development approval procedures, which are complex; advice should be retained about developments that may fall within these parts. The Planning Act also provides that, for certain types of development, the concurrence of an authority other than the consent authority must be obtained. The conditions for approval of development assessed under Part 4 or Part 3A may also require the developer to obtain further certificates or approvals. These will add cost and time.
The council's local environment plan (LEP) usually identifies whether development consent is required. The LEP categorizes development as requiring consent, not requiring consent, or prohibited. In most cases, the zoning of the site determines the types of development permitted on the land. Note that the construction of a warehouse is a type of development that almost always requires consent. If the development requires development consent, the local council will usually be the consent authority. However, in some cases, another authority (such as a State minister) may be the consent authority.
Agency: Local Council
|
1 day
|
no charge
|
| 2 |
Developer lodges development application with consent authority
The development application, to be filed with the consent authority, must include the following items:
- Site analysis.
- Environmental impact assessment.
- Fire safety audit.
- Other prescribed matters.
The consent authority reviews the environmental impact assessment for this proposed work and considers the following:
- Relevant planning controls.
- Likely environmental impacts.
- Suitability of the site for development.
- Submissions received.
- Other prescribed matters.
- The public interest.
If the assessment is satisfactory, the consent authority will grant BuildCo development consent, which may be subject to conditions. In some cases, the consent authority’s decision may be subject to appeal. For instance, the applicant may appeal to the Land and Environment Court if the consent authority refuses consent or does not determine the development application within 40 days, or if the applicant is dissatisfied with the conditions imposed on the consent. The appeal is a merits appeal, and the court determines the development application as if it were the consent authority. The court has the power to grant consent and impose such conditions as it sees fit.
The application fees are set on a sliding scale, depending on the estimated development cost. The fee for a Development Application is governed under the Environmental Planning and Assessment Regulation 2000.
For a development with an estimated cost of $976,000, a Development Application would cost AUD 2525.64, which is calculated as:
Base Fee = AUD 1,745 + additional AUD 1.64 per AUD 1000 (or part thereof) by which the estimated cost exceeds AUD 500,000
Agency: Local Council
|
90 days
|
AUD 2,526
|
| 3 |
Appoint the Principal Certifying Authority and apply for a Construction Certificate with the Principal Certifying Authority
Before the start of any site work, the developer must appoint a principal certifying authority (PCA) and apply to the PCA for a construction certificate. The PCA can be either the consent authority or a private sector accredited certifier. BuildCo must confirm with the PCA what work will be done, the fee, and any other requirements. The developer must notify the consent authority 2 days before work begins. Standard fees apply for appointing the local council as the PCA. Accredited certifiers can set their own fees.
A construction certificate provides independent certification that work on approved development, if completed according to specified plans and specifications provided with the application for the certificate will comply with the requirements of the Environmental Planning and Assessment Regulation 2000. The regulation sets out PCA requirements that must be satisfied before the construction certificate is issued. These requirements include that the development will comply with the development consent conditions, that payment of the long service levy has occurred, that the fire protection and structural capacity of the development will be adequate, that the development will comply with the Building Code of Australia, that the development will comply with certificate requirements for BASIX (or the Building Sustainability Index), and that the developer has consulted with the appropriate public authorities on the provision of utility services. The PCA is to give notice of its determination to the consent authority within 2 days of the date of determination.
Each local council has its own fee schedule. Assuming that a developer applies for a certificate to build a new warehouse estimated at more than AUD 1 million (generally, the top of the range in the council schedule of fees), the fees vary by council.
This fee depends on the value of the project (e.g. fee schedule from the Hills Shire Council):
-- Base fee: AUD 491.70
-- Every AUD 1,000 over AUD 250,000: AUD 0.60
Hills Shire Council total AUD 927.3
Before the fee for this same council where 903.50
Agency: Principal Certifying Authority (PCA)
|
7 days
|
AUD 927
|
| 4 |
The Principal Certifying Authority inspects the construction for footings/ structure
Work begins according to any conditions specified in the development consent and the construction certificate. The PCA will set the inspection schedule. In many instances, the PCA may audit the construction either by carrying out specified inspections or by relying upon certification from other accredited certifiers (council officers) or professionals. However, it is likely that the PCA will be required to conduct some inspections at critical stages of construction.
During its inspections (or review of others' inspections), the PCA will evaluate aspects such as footings or structural; timber framing; site drainage; termite control; fire safety measures; wet areas; lighting and ventilation; rating of sound transmission class; and stair construction and balustrades.
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 5 |
The Principal Certifying Authority inspects the construction for timber framing
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 6 |
The Principal Certifying Authority inspects the construction for site drainage
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 7 |
The Principal Certifying Authority inspects the construction for fire safety measures
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 8 |
The Principal Certifying Authority inspects the construction for wet areas
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 9 |
The Principal Certifying Authority inspects the construction for lighting/ ventilation
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 10 |
The Principal Certifying Authority inspects the construction for sound transmission class rating
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 11 |
The Principal Certifying Authority inspects the construction for stair construction and balustrades
Agency: Principal Certifying Authority (PCA)
|
1 day
|
AUD 96
|
| 12 |
Request and receive connection to water/ sewage services with Sydney Water
To receive a connection to water and sewage services, BuildCo first selects a water-servicing coordinator. The coordinator requests a Section 73 Compliance Certificate (for water and sewerage infrastructure) from Sydney Water on BuildCo’s behalf. Sydney Water issues a notice of requirements to the coordinator within 10 days of application receipt (or longer if the development is complex). The notice specifies charges to be paid and the project to be built. If construction is required, certification will depend on the time required for the project to be built and taken over by Sydney Water. BuildCo pays the fees, builds the project, and receives the certificate.
Fee schedule for water and sewage connection:
- Water (including works): Up to AUD 1215.00.
- Sewage (assuming that infrastructure exists): AUD 132.00.
Agency: Sydney Water
|
10 days
|
AUD 1,347
|
| * 13 |
Request and receive connection to telephone
BuildCo contacts the preferred carrier (e.g., Telstra business services division). If a new connection is required, the carrier will ensure that the required preparatory work is completed by BuildCo or its own staff. Once preparatory work is complete, a new connection can be installed within 5 working days.
Agency: Telstra
|
5 days
|
AUD 300
|
| 14 |
Request and obtain the Occupation Certificate from the Principal Certifying Authority
After construction is completed satisfactorily, BuildCo provides the PCA a fire safety certificate. Subsequently, the PCA may issue an occupancy certificate. This certificate certifies that the premises are fit for occupancy and for other uses subject to the development consent. Occupation certificates may be interim or final, and may relate to all or only part of a building.
Agency: Principal Certifying Authority (PCA)
|
30 days
|
AUD 80
|
| 15 |
Compliance check by the authority
The authority that has approved the development may monitor the finished development to ensure compliance with laws and local planning policies. If the development does not comply with the development consent, the applicant can be fined (with a penalty notice), ordered to make changes to the development, or taken to the Land and Environment Court of New South Wales. The court may issue orders to remedy or restrain breaches of the development consent (e.g., orders to carry out works, cease certain uses of the premises, or remove the development). In addition, breaches of planning laws may be criminal offences. New South Wales planning legislation allows any person to bring an action to remedy or restrain a breach of development consent. Thus, in theory, any person may commence proceedings to enforce compliance with the law (a) if a relevant approval (such as a development consent or construction certificate) has not been obtained where required; or (b) if there has been non-compliance with the conditions of a relevant approval.
Agency: Local Council
|
1 day
|
no charge
|
* Takes place simultaneously with another procedure.