Change of Use Planning Permits in Victoria

Everything you need to know about changing the use of a property in Victoria. When you need a permit, the application process, costs, and common pitfalls.

What Is a Change of Use?

A change of use occurs when the way a property is used changes from one land use category to another under the planning scheme. In Victoria, land uses are defined by Clause 73.03 of the Victorian Planning Provisions (VPP), and each zone specifies which uses are permitted, require a permit, or are prohibited.

A change of use is not simply about what you call your business. It is about whether the planning definition of the use changes. For example, converting a clothes shop to a bookshop is not a change of use because both are “shop” under Clause 73.03. However, converting a clothes shop to a cafe is a change of use because a cafe is “food and drink premises”, a different use term.

Changes of use can range from straightforward (shop to shop) to complex (residential to commercial, industrial to entertainment). Understanding the planning definitions and your zone's use table is the essential first step.

When Do You Need a Permit for Change of Use?

Whether you need a planning permit depends on the zone use table classification of your proposed use. There are three scenarios:

No Permit

The new use is Section 1 in your zone

If the proposed use is listed in Section 1 of the zone table and meets all specified conditions, no planning permit is required for the use. You can commence the use as-of-right. However, any associated building works may still require a permit.

Permit Required

The new use is Section 2 in your zone

If the proposed use is listed in Section 2, you must apply for a planning permit before commencing the use. Council will assess the application on its merits.

Prohibited

The new use is Section 3 in your zone

If the proposed use is listed in Section 3, it is prohibited and cannot be approved. You would need to find a different property in an appropriate zone, or seek a planning scheme amendment (a lengthy and uncertain process).

Even if a use is Section 1 in the zone, overlays, particular provisions, or other controls may still trigger a permit requirement. Always check the complete set of planning controls, not just the zone.

The Role of Zone Use Tables (Section 1/2/3)

Every zone in the Victorian Planning Provisions contains a use table that divides all possible land uses into three sections. This table is the primary tool for determining whether a change of use requires a permit. The three sections are straightforward: Section 1 means no permit needed, Section 2 means permit required, and Section 3 means prohibited.

The zone schedule for each municipality can modify the standard use table by adding conditions, changing classifications, or specifying additional requirements. This means the same zone can have different use table outcomes in different council areas. Always check the schedule that applies to your property.

For a detailed explanation of Section 1, 2, and 3 classifications with an interactive zone lookup tool, see our Section 1, 2 & 3 Uses Guide.

Common Change of Use Scenarios

Retail shop→Cafe / Restaurant

One of the most common changes. Both may fall under Section 1 in commercial zones, but a cafe is 'food and drink premises' not 'shop'. Different car parking rates apply. Council will assess hours of operation, patron numbers, noise, waste, and amenity impacts. A liquor licence triggers Clause 52.27.

Office→Gym / Fitness centre

A gym is classified as 'leisure and recreation' under Clause 73.03. In commercial zones this is typically Section 2. Key considerations include car parking (higher rate than office), noise, hours of operation, and loading for equipment. May require acoustic assessment.

Residential dwelling→Commercial use

Most commercial uses are Section 3 (prohibited) in residential zones. If you are in a mixed-use area or your property is zoned C1Z/C2Z despite being used as a dwelling, a change of use may be possible. Check the zone first — if it is GRZ, NRZ, or RGZ, most commercial uses cannot be approved.

Warehouse→Office / Co-working space

In industrial zones, office use is often limited to 500 sqm as Section 1. Exceeding this requires a Section 2 permit. In IN3Z, larger offices are more readily supported. Car parking rates differ significantly between warehouse and office uses.

Shop→Medical centre

A medical centre has a specific definition under Clause 73.03. In C1Z it is typically Section 1 (as-of-right). Car parking requirements for medical centres are generally higher than for retail. Access and disability compliance must also be considered.

Industrial premises→Place of worship

A place of worship is Section 2 in most industrial and commercial zones. Key issues include car parking (high demand during services), traffic, noise, hours of use, and neighbourhood amenity. Council will assess the compatibility of the use with surrounding industrial operations.

The Application Process

If your change of use requires a planning permit, the application process follows these steps:

Determine the correct use term

Identify the correct land use term under Clause 73.03 for your proposed use. Check the nesting hierarchy in Clause 73.04. What you call your business may differ from the planning definition.

Check the zone use table

Look up your zone's use table to determine whether the proposed use is Section 1 (no permit), Section 2 (permit required), or Section 3 (prohibited). Check the zone schedule for your specific municipality as it may vary conditions.

Check overlays and particular provisions

Review any overlays on the property (Heritage Overlay, Environmental Audit Overlay, etc.) and relevant particular provisions such as car parking (Clause 52.06), licensed premises (Clause 52.27), and loading (Clause 52.07).

Prepare your application

Prepare a planning permit application including a written description of the proposed use, floor plans showing the layout, a car parking demand assessment, and any other supporting information required by the zone or overlays.

Lodge with council

Submit your application to the responsible authority (usually the local council) with the required fee. Council will check the application for completeness and may request further information before formally accepting it.

Advertising and notification

Council will determine the notice requirements. Most Section 2 use applications require notice to adjoining owners and occupiers. A sign may also be required on the site. Objectors have 14 days to respond.

Assessment and decision

Council assesses the application against the zone decision guidelines, relevant policies, and any objections received. Council may approve (with or without conditions), refuse, or request amendments to the application.

Typical Costs and Timeframes

The cost of a change of use application depends on the complexity and the council. Below are typical ranges:

Item	Typical Cost
Council application fee	$1,300 - $3,500+
Town planning consultant	$2,000 - $8,000+
Traffic / car parking assessment	$2,000 - $5,000
Acoustic assessment (if required)	$2,000 - $4,000
Waste management plan	$500 - $1,500

Timeframes: A straightforward change of use application typically takes 2-4 months from lodgement to decision. Complex applications (those attracting objections, requiring referrals, or needing additional information) can take 4-8 months. A VCAT appeal adds a further 3-6 months.

Statutory timeframe: Council has 60 statutory days to decide an application. If no decision is made within this period, the applicant can appeal to VCAT for a failure to determine.

Car Parking Considerations (Clause 52.06)

Car parking is one of the most significant considerations in any change of use application. Clause 52.06 of the VPP sets out the standard car parking rates for different uses. When the use changes, the parking requirement changes too.

Key Parking Rates (Clause 52.06)

•Office: 3.5 spaces per 100 sqm of net floor area
•Shop / Retail: 4 spaces per 100 sqm of leasable floor area
•Food and drink premises: 3.5 spaces per 100 sqm of leasable floor area
•Medical centre: 5 spaces per practitioner
•Place of worship: 0.3 spaces per seat
•Gymnasium: 5.5 spaces per 100 sqm of net floor area

If the new use requires more parking than the existing use, you must either provide the additional spaces on-site or apply for a parking reduction. A Parking Overlay may also apply, modifying the standard rates for your area.

Council will consider factors including proximity to public transport, existing on-street parking availability, the potential for shared parking arrangements, and any empirical data on actual parking demand. A traffic and parking assessment prepared by a qualified traffic engineer is usually required for significant changes.

Common Pitfalls and How to Avoid Them

Using the wrong land use term

The most common mistake is assuming your everyday description of a business matches the planning definition. Always check Clause 73.03 and the nesting hierarchy in Clause 73.04. A “yoga studio” is not a “studio” — it is “leisure and recreation” under the planning scheme.

Not checking the zone schedule

The standard zone provision is only the starting point. The zone schedule for your municipality may add conditions, change classifications, or prohibit uses that would otherwise be permitted. Always check the full schedule, not just the standard provision.

Ignoring car parking requirements

Many change of use applications fail because the new use requires more car parking than can be provided on-site. Address this early in the process. A traffic assessment demonstrating adequate parking will strengthen your application significantly.

Starting the use before obtaining a permit

Operating without a required permit is an offence. Council can issue enforcement notices, and you may be required to cease operating and restore the premises to their previous condition. Retrospective applications are possible but are assessed less favourably.

Not considering amenity impacts

Even if a use is permissible, council will assess its amenity impacts on surrounding properties. Noise, hours of operation, delivery vehicles, waste management, and patron behaviour are all relevant. Proactively addressing these in your application reduces the risk of objections and refusal.

Overlooking the Environmental Audit Overlay

If your property has an Environmental Audit Overlay (EAO) and the new use is a sensitive use (such as a childcare centre or residential), an environmental audit or preliminary risk screen assessment is required before the use can commence. This can add significant cost and time to the process.

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Frequently Asked Questions

Do I need a planning permit to change from one shop to another shop?

Generally no, if both uses fall within the same land use term (e.g., both are 'shop' under Clause 73.03) and the use is Section 1 in the zone, no new permit is required. However, if the new shop type triggers different car parking rates, liquor licensing requirements, or different conditions in the zone schedule, a permit may still be needed.

How long does a change of use permit take?

A straightforward change of use application typically takes 2-4 months from lodgement to decision. This includes the statutory advertising period (usually 14 days), time for objections, and council assessment. Complex applications or those that attract objections can take longer. VCAT appeals add 3-6 months.

Can I start operating before the permit is issued?

No. Operating a use that requires a planning permit without one is an offence under Section 126 of the Planning and Environment Act 1987. Penalties apply, and council can issue enforcement orders requiring you to cease the use. Always obtain your permit before commencing the new use.

What if the previous tenant had a permit for a similar use?

Planning permits generally run with the land, not the person. If a valid permit exists for the use you propose, you can typically rely on it. However, check the permit conditions carefully — some permits are personal, have expiry dates, or include conditions that may not suit your operation. Also confirm the use was not abandoned (generally 2 years of non-use).

Do I need to provide more car parking for a change of use?

Clause 52.06 requires car parking based on the specific use. If your new use has a higher car parking rate than the existing use, you must provide additional spaces or seek a reduction (waiver). Council will consider factors like public transport access, existing on-street parking, and shared use potential. A traffic assessment may be required.

What about existing use rights?

If a use was lawfully established before planning controls changed to prohibit it, the use may have existing use rights under Section 6A of the Planning and Environment Act 1987. These rights allow the existing use to continue but do not extend to new or different uses. Existing use rights are complex and should be assessed by a planning professional.