Fit-Out vs Change of Use: What Council Actually Considers a New Use

Understanding what councils classify as a "new use" is critical for any commercial tenant, developer or property owner navigating NSW planning rules.

In practical terms, a "new use" means a change in the activity or purpose for which a space is used, which may have different planning and compliance implications.

Making the wrong assumption can delay DA approval or trigger enforcement action.

Here is what councils actually look for when deciding whether your proposal is just a fit-out or a full change of use requiring a new development application.

Fit-Outs Are Internal, But Not Always Exempt

A commercial fit-out usually involves interior works like new flooring, partitions, lighting or signage.

These are common when leasing retail shops, offices or restaurants.

However, not all fit-outs are exempt from planning approval.

In NSW planning, councils consider whether the proposed works alter the building's

structural layout, impact fire safety or change how the building is accessed.

For example, converting an open-plan office into multiple consulting rooms may require a DA if it affects shared exits or accessible facilities.

A planning consultant can review your plans early and advise whether your fit-out is exempt or needs a development application.

Change of Use Is About Activity, Not Just Layout

Changing the use of a space means altering the type of activity being carried out.

Even if no physical work is done, council approval may still be needed.

For example, turning a retail shop into a medical centre is considered a new use under most Local Environmental Plans (LEPs).

Why? Because the traffic, noise and parking impacts are usually different.

The same applies when changing from a warehouse to a gym, or from a cafe to a take awayonly outlet.

NSW councils assess whether the new use aligns with zoning controls and local planning rules.

A planning consultant can provide clear planning advice to avoid costly delays.

Councils Rely on the Building Code and Zoning

NSW councils refer to the Building Code of Australia and land use tables in their LEPs to determine if a new use is permissible.

The existing use rights of a property also play a role.

If a premises was previously approved for office use, you may not need a new DA to lease it to another office tenant.

But if you're proposing something different, like a restaurant or clinic, the use class changes.

This could trigger a full DA approval process, including public notification and specialist reports.

Understanding these distinctions is critical for landlords and tenants.

Our town planning team regularly advises on use rights and zoning interpretations.

For instance, a common issue we encounter involves businesses assuming a beauty clinic can operate in a retail zone without approval, when in fact it may fall under a separate use category requiring a DA.

Real-World Examples Help Clarify

We recently worked with a client who leased a space previously used as a showroom.

They wanted to convert it into a small physiotherapy clinic with minimal interior works.

While the fit-out was minor, council required a DA because the use changed from retail to health consulting rooms.

In contrast, another client fitted out a sushi shop within an approved takeaway premises and was exempt under the NSW planning codes.

These cases show why early planning advice is essential.

When in Doubt, Ask Early

If you're unsure whether your project qualifies as a fit-out or a change of use, get expert advice early.

Town Planning Sydney specialises in navigating DA approval and council approval across NSW.

We combine planning advice with architectural drafting to streamline your development application.

Our planning consultants assess your site, review zoning and ensure your proposal aligns with all NSW planning controls.

This helps reduce delays, avoid enforcement issues and improve your chance of approval.