Planning Permit vs Building Permit: What’s the Difference – and Do You Need Both?

If you're considering a renovation or home extension in Victoria, you've probably heard about planning permits and building permits. They often come up early in the process — but it's not always clear what each one involves, who issues them, or why they're required.

At Transcend Homes, we often guide clients through both stages. Understanding the distinction between the two can help you avoid delays, budget more accurately, and feel more in control of your project from day one.

Here’s what you need to know.

What is a Planning Permit?

A planning permit is a legal document issued by your local council that gives you permission to use or develop land in a particular way.

It’s assessed against local planning schemes, which set out what can and can’t be built in your area. These rules consider the broader community, streetscape, and environmental impacts — not just your individual property.

Planning permits are concerned with:

  • How your home fits into the neighbourhood

  • Whether your extension will impact neighbours (e.g. overlooking, shadowing)

  • Heritage protections

  • Zoning and overlays (e.g. bushfire zones, flood zones, vegetation protection)

  • Site coverage, building height, and boundary setbacks

Example:

If your property is covered by a heritage overlay, you may need council approval to extend the front of your house or make changes to materials or façade — even if it’s a relatively minor update.

Timeframe:

The planning permit process typically takes between 4 and 12 weeks, depending on complexity. If your application needs to be advertised to neighbours or receives objections, it can take longer.

Important to know:

  • You can’t start any building works until a planning permit is granted (if required).

  • Planning permits must be obtained before a building permit can be issued.

  • They typically last one to two years, depending on conditions set by council.

What is a Building Permit?

A building permit is a separate approval that confirms your proposed construction complies with the Building Code of Australia, local building regulations, and applicable standards for safety, energy efficiency, and structural integrity.

Unlike planning permits, which are about design and land use, building permits are technical. They focus on how the works will be carried out — not whether the design is appropriate for the area.

Building permits are issued by a registered building surveyor, either private or through council.

Building permits cover:

  • Structural design and engineering

  • Footings and foundations

  • Fire safety measures

  • Drainage and stormwater

  • Termite protection

  • Compliance with the energy rating

  • Construction details, materials and methods

  • Site fencing, signage, and inspections

Example:

If you’re building a second storey or knocking out a structural wall, your building permit will ensure the framing, load-bearing beams, and engineering are sound — and that work is inspected at key stages.

Timeframe:

Once all required documentation is ready, building permits are usually processed in 1 to 5 weeks. This includes review of architectural drawings, structural engineering, energy reports, and site-specific documents like soil tests.

Do I Need Both?

It depends on the type of work you’re doing.

You will always need a building permit for structural work like an extension or major renovation. But you may not need a planning permit if your project complies with all zoning and overlay requirements.

Common projects that usually only need a building permit:

  • Internal renovations (no change to external footprint or façade)

  • Rear extensions on properties with no overlays and compliant setbacks

  • Garage conversions

Projects likely to need both:

  • Works on properties in a heritage overlay

  • Second-storey additions near boundaries

  • Extensions that alter the street-facing façade

  • Builds on properties with environmental or zoning overlays

  • Dual occupancies or subdivision

If you’re unsure, Transcend Homes can help assess your site and advise early in the process — saving you from preparing unnecessary drawings or running into delays later on.

How We Help at Transcend Homes

Navigating permits is one of the most time-consuming — and often frustrating — parts of planning a home improvement project. We believe it shouldn't be.

At Transcend Homes, we:

  • Review your site early to identify any likely permit triggers

  • Liaise with local council and private building surveyors on your behalf

  • Work closely with designers and engineers to prepare compliant documentation

  • Manage the application process for planning and building permits

  • Help guide the timing so your project stays on track

Because we specialise in extensions and renovations in Geelong, Ballarat, and surrounding areas, we’re across the local regulations and know what to expect from different councils.

Final Thoughts

Permits might not be the most exciting part of your renovation, but they’re essential. Understanding the difference between a planning permit and a building permit – and getting the right advice early – can make all the difference in how smoothly your project runs.

If you’re thinking about renovating or extending your home and unsure what approvals you’ll need, we’re here to help.

Let’s chat about what’s possible for your home.

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