For developers operating nationally, the question ‘has the development approval commenced?’ cannot be answered by applying a single national rule.
Victoria, New South Wales and Queensland apply their own statutory language, lapsing frameworks and practical thresholds. A works programme that satisfies one State’s test may fall short in another - particularly if you have not sequenced conditions and ancillary approvals to meet the local requirements.
Why it matters | Key risk | Commercial impact |
Approvals and consents do not last indefinitely. Each jurisdiction imposes a time limit within which development must begin. | If commencement is not established before the relevant lapsing or currency date, valuable development rights can be lost. | Commencement affects project programming, site acquisition risk, finance, contractual milestones and due diligence. |
Same commercial problem, different statutory tests
Regardless of the State you are operating in, the commercial problem remains the same: developers need to preserve approvals by ensuring that appropriate activities occur before the relevant expiry date. The statutory expression of that issue differs across States.
Victoria focuses on whether development has started (s 68, Planning and Environment Act 1987 (VIC)), New South Wales asks whether work has been physically commenced (s 4.53, Environmental Planning and Assessment Act 1979 (NSW)) and Queensland asks whether, for a material change of use, the first change of use has happened, for reconfiguring a lot, the plan is given to council and for other development, it has been substantially started (s 85, Planning Act 2016 (QLD)).
Those differences matter when programming works, negotiating sunset or condition precedent dates and assessing whether an approval can safely be relied on.
State-by-state snapshot
State | Commencement language | What usually matters | Watch point |
Victoria | ‘start’ | Physical works on site are typically the strongest evidence. For certain subdivision-related permits, certification of the plan may deem commencement (s 68(3A)). Default lapsing period is 3 years if no time specified in the permit. | The Act does not precisely define ‘start’. Permit conditions may prevent commencement until satisfied, as per the decision in Dahlenburg v Hindmarsh SC (Red Dot) [2022] VCAT 669. For amendments to existing permits, the timeframe for starting the additional development may be shorter than for new permits. |
New South Wales | ‘physically commenced’ | Building, engineering or construction work must be physically commenced on the land and relate to the approved development (s 4.53(4)). Default lapsing period is five years from the date consent operates (s 4.53(1)). The three-part test is: | Per the decision in Fabemu (No 2) Pty Ltd v Kiama Municipal Council [2023] NSWLEC 79, geotechnical and survey work may qualify as ‘engineering work’ carried out on the land for the purpose of physical commencement, satisfying the three-part test under section 4.53(4) of the Environmental Planning & Assessment Act 1979 (NSW). |
Queensland | MCU – ‘use has happened’ ROL – ‘plan has been given’ Other – ‘substantially started’ | Under the Planning Act 2016 (Qld), a development approval lapses at the end of its currency period unless commenced in the manner required by s 85. For a material change of use, the first change of use must happen within the currency period. To reconfigure a lot, the plan must be given to the local government within the currency period and for any other development, the development must be substantially started within the currency period. | Currency periods differ by development type. They are generally six years for material change of use, four years for a ROL and two years for other development (s 85). Extension applications must be made to the assessment manager before lapsing (ss 86-87), with decisions required within 20 business days. |
What counts as ‘commencement’ in practice?
Across the States, tangible, approval-linked physical activity on the land will generally be more persuasive than administrative or commercial steps. Examples that are usually stronger include excavation, piling, footings, foundations, drainage or stormwater works, roads, service infrastructure and in New South Wales, geotechnical boreholes or survey set-out where those works are properly connected to the approved development (Fabemu (No 2) Pty Ltd v Kiama Municipal Council [2023] NSWLEC 79).
The more difficult category is preparatory activity. Demolition, vegetation removal, site fencing, temporary works and service disconnections may assist in some circumstances, but they are more likely to require a careful assessment of the approval, the conditions and the relationship between the works and the approved development. Purely administrative steps, such as appointing consultants, signing contracts, obtaining finance or ordering materials, should not be treated as a safe substitute for works on the land.
Under Section 85 of the Queensland Planning Act 2016, what counts as ‘commencement’ depends entirely on the specific type of development approval you hold. In practice, if you do not hit the specific milestone before the default or stated currency period ends, the development approval lapses.
What counts as commencement and therefore prevents a development approval from lapsing, depends on the type of approval:
Practical steps for national developers
- Build a State-specific commencement check into acquisition and project programming due diligence
- Identify the lapsing or currency date at the outset and diarise internal decision points well before that date
- Review conditions precedent, endorsed plans, subdivision requirements and ancillary approvals before relying on works. Note that in Victoria, an extension of time application may be made before expiry or within six months afterwards (s 69)
- Keep contemporaneous evidence of works, including dates, photographs, contractor records, survey material and invoices
- Avoid assuming that a commencement strategy accepted in one State will be sufficient in another.
Key takeaway
For a national project pipeline, commencement should be treated as a jurisdiction-specific legal and project management issue. The safest approach is to align the works programme, evidence strategy and condition compliance plan with the statutory test in the relevant State.
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Published
25 August 2026This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.