Do You Need a Planning Permit to Renovate in Melbourne? A 2026 Guide

Permits are where good renovations quietly go wrong — not because they’re hard, but because homeowners don’t know which approval they need, get the order wrong, or find out about an overlay after the design is locked in. The word “permit” gets used to mean several different things, and mixing them up costs time and money.

We’re a registered Melbourne building group (Alcon Building Group), extending and renovating across Melbourne’s east and south-east for over 35 years — which means we deal with councils, surveyors and overlays constantly. Here’s the plain-English version of what you actually need in 2026, in what order, and what it costs.

Second-storey extension under construction in Port Melbourne — Alcon Building Group

Planning permit vs building permit — they’re not the same thing

This is the single most important distinction, and getting it wrong is the most common cause of delay:

A building permit is about how you build — structural adequacy, safety, compliance with the National Construction Code. It’s issued by a registered building surveyor (private or council-appointed), not the council. Most structural renovation work needs one.
A planning permit is about whether you’re allowed to build what you’re proposing on that land — it’s assessed by your local council against the planning scheme, and considers things like overlays, setbacks, neighbourhood character and impact on neighbours.

Many renovations need a building permit only. Some need both. And crucially: if you need both, the planning permit must come first — you can’t get the building permit until planning approval is granted. Starting the building-permit process before checking whether planning approval is required is the classic Melbourne renovation trap.

When do you NOT need a planning permit?

Good news first — a lot of renovation work doesn’t need planning approval at all. Generally, you won’t need a planning permit for:

Internal renovations — kitchens, bathrooms, reconfiguring internal space, removing internal (even load-bearing) walls. These are a building-permit matter, not planning.
Like-for-like work that doesn’t change the building’s external footprint or appearance.
Most cosmetic work — painting, flooring, fixtures.

Note that “no planning permit” doesn’t mean “no approval at all” — structural work, new wet areas and most work over $10,000 still needs a building permit and the relevant trade compliance certificates (your VBA-registered plumber and electrician issue those).

When DO you need a planning permit?

You’ll typically need a planning permit when the work affects things the council cares about:

Your property is in an overlay — most commonly a Heritage Overlay or Neighbourhood Character Overlay. In overlay areas, even external changes at the rear can trigger a permit. This is common through Camberwell, Hawthorn, Kew, Malvern and pockets right across the older eastern suburbs.
You’re changing the building’s footprint — extensions, second storeys, and additions that alter the external envelope.
You’re encroaching on setbacks — building closer to a boundary than the scheme allows, or casting additional overshadowing on a neighbour’s secluded private open space.
You’re increasing dwellings on the block — converting one home into multiple, or adding a second dwelling (a granny flat, in some zones).
Vegetation or environmental overlays — relevant in the leafy outer-east and the Dandenongs, where tree controls and bushfire (BAL) requirements can apply.

A 2026 note worth knowing: Victoria simplified the approval pathway for many small second dwellings (self-contained units under 60m²) — the permit path is easier than it used to be, though overlays still apply. If a granny flat is on your mind, it’s worth checking where your block sits under the current rules.

How long does it take?

This is where planning and building permits differ most, and where you plan your timeline around:

Building permit: typically 10–15 business days to issue once documentation is complete.
Planning permit: the statutory clock is 60 days, but in practice most applications run 8–16 weeks — and complex ones (heritage, neighbour objections, or a VCAT appeal) can stretch to 6–12 months.

The planning permit timeline is the one that governs your whole project, because everything downstream waits on it. Build your start date around planning, not building.

What does it cost in 2026?

Council planning application fees are set by the state government under the Planning and Environment (Fees) Regulations and are the same across every Victorian council. They’re indexed each 1 July. For the 2026–27 financial year, the fees for a single-dwelling renovation or extension, based on your estimated cost of works, are:

$10,000–$100,000 of works: $734.00
$100,000–$500,000 of works: $1,502.50 (where most renovations and extensions land)
$500,000–$1,000,000 of works: $1,623.40

These are council application fees only — GST doesn’t apply to them. Beyond the permit fee itself, budget for the documentation the application needs:

Architectural / planning drawings — required for the application; part of your design fee.
Reports where triggered — heritage, arborist, land survey, or a bushfire (BAL) assessment in fire-prone areas.
Building permit levy (VBA) — $500 – $3,000, scaled to construction cost, on top of the surveyor’s fee.
Building surveyor’s fee — for issuing and inspecting the building permit.

The process, step by step

Check for overlays first — before you fall in love with a design. A quick look at the planning scheme (or a call to the council’s duty planner) tells you whether you’re in permit territory and saves you designing something that can’t be approved.
Design to the constraints — a good designer works within your overlay and setback reality from the start.
Lodge the planning application (if needed) — plans, a written description, and the fee. Council assesses it against the scheme.
Public notification — neighbours may be notified and can object; the planner weighs objections.
Decision — permit granted (often with conditions), or refused. If refused, you can appeal to VCAT.
Then the building permit — once planning is sorted, your building surveyor issues the building permit and sets the mandatory inspection stages (footings, frame, completion).

Where Alcon fits in

We’re not a planning consultancy, but after 35 years we know the pathway cold, and we work with the designers, surveyors and consultants who get applications through. Where we add value is stopping you from making the expensive early mistakes — designing something an overlay won’t allow, getting the permit order wrong, or under-budgeting the approval stage. If you’re at the “can I even do this?” stage, an honest early conversation saves you months.

If you’re planning a renovation or extension anywhere across Melbourne’s east and south-east and you’re not sure what approvals you need, get in touch — we’ll give you a straight read before you spend money on a design.

Properties inside a heritage overlay face a longer and more involved permit path than the standard process above — see our guide to renovating a heritage home in Melbourne for how heritage controls affect approvals.

Request a consultation → or call us on 1300 425 266.

See a completed project on a constrained site: our Fitzroy extension and full renovation, delivered within the access and heritage limits of an inner-Melbourne block.