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Do I need a planning
permit for an extension
in Melbourne?

Often not for a single-storey rear addition. Almost always for a second storey in a heritage overlay. The distinction matters because a planning permit adds months and thousands to a project, and most people find out about it after they have paid for drawings.

Two different permits, two different bodies

This trips up nearly everyone, so it is worth being precise. A planning permit is issued by your council and is about land use — overlays, setbacks, overshadowing, neighbourhood character. A building permit is issued by a registered building surveyor you appoint privately, and is about whether the thing you are building complies with the Building Code.

You may need one, both, or in rare cases neither. Every project needs a building permit. Only some need a planning permit, and that is the one that costs you time.

What usually triggers a planning permit

A heritage overlay

The most common trigger in inner Melbourne. Once an overlay applies, even modest external work generally needs planning approval, and the assessment looks at form, materials and visibility from the street.

Building near or on a boundary

Wall-on-boundary length and height limits vary. Exceeding them puts you into a planning application, often with neighbour consent required first.

Overshadowing and overlooking

Second storeys attract scrutiny here. Windows overlooking a neighbour's private open space, or new shadow cast on it, are among the most common reasons a design gets sent back.

Other overlays

Special building overlay for flood risk, significant landscape, environmental significance and bushfire management overlays all trigger assessment independent of heritage.

What it costs and how long it takes

ItemNotesTypical
Planning application feeScaled to the cost of works; set by regulation, not by the council$1.2k – $4k+
Planning drawings and reportsOften more detailed than the drawings you would otherwise need$4k – $15k
Building permit and surveyorEvery project, whether or not planning applies$2.5k – $6k
Time added by planningLonger with objections or a heritage assessment3 – 9 months

Fees and durations vary by council and by project. Confirm with your council before budgeting.

Why this matters to your budget

The money is not really the issue — a few thousand dollars on a project of several hundred thousand is noise. The issue is time. A planning pathway with a heritage assessment and a round of objections can add six to nine months before construction starts, during which you are still paying a mortgage on a house you may need to move out of.

Find out which pathway you are on before you commission a full design. A short conversation with your council's planning counter, or a title search showing your overlays, costs nothing and reshapes the whole program.

Your project, not an average

Know the cost before the approval

An indicative range takes two minutes, and it tells you whether the project is worth taking through planning at all.

Common questions

Can I extend without a planning permit in Melbourne?

Often yes for a single-storey rear addition on a site with no overlay, provided you stay within setback, site coverage and boundary rules. You will still need a building permit from a registered building surveyor. A heritage overlay usually removes that option.

How do I find out if my property has a heritage overlay?

Your council planning maps show overlays by address, and a title search or planning property report will list them. Do this before briefing a designer, because the overlay shapes what is worth designing.

How long does a planning permit take in Melbourne?

Commonly three to nine months depending on the council, the complexity, whether a heritage assessment is required, and whether neighbours object. Building permits are considerably faster once planning is resolved.

What is the difference between a planning permit and a building permit?

A planning permit is issued by the council and concerns land use, overlays, setbacks and neighbourhood impact. A building permit is issued by a registered building surveyor you appoint and concerns compliance with the Building Code. Most projects need a building permit; only some need a planning permit.

Related

When you are ready to build

AE Index is not a building company. When a project is ready to be priced properly, we pass it to a builder from our verified network — who will walk the site, inspect what is under the floor, and put a fixed price in writing. We are paid a fee by them on work that proceeds, and you are under no obligation to use them.

  • Current domestic builder registration, confirmed with the Victorian Building Authority
  • Domestic building insurance current and sighted
  • Two completed projects contacted directly — not supplied testimonials
  • Fixed-price contracts with a written variations policy
  • Re-checked annually, and removed from the network on any lapse

Last updated 28 July 2026

AE Index publishes indicative cost data for Melbourne residential renovation. Estimates are budget-setting figures, not quotes, and assume a standard site with no undisclosed structural, drainage or contamination issues. Square-metre rates are drawn from the Archicentre Australia CostGuide 2026, an independently published Australian cost guide, and are GST inclusive. Site adjustments are AE Index's own and are labelled wherever they appear. AE Index refers projects to a builder from its verified network and receives a fee on work that proceeds.