Spacez insight · March 2026 · 7 min read

Building Permit for Commercial Fitout Melbourne | What You Need to Know

When does a Melbourne commercial fitout need a building permit? Understand common triggers, exemptions and the building surveyor’s role.

Do I Need a Building Permit for a Commercial Fitout in Melbourne?

It's one of the most common questions we get from businesses planning a fitout: "Do I need a building permit?" The honest answer is: usually yes, but it depends on what you're doing.

Getting this wrong has real consequences. Proceeding without a required permit creates liability for the business owner, can make it difficult to get insurance, and may require demolition and rectification if the work is discovered by a council or building surveyor. In a commercial lease context, it can also expose you to claims from your landlord.

Here's a plain-English guide to Melbourne commercial fitout permits — what's required, what's not, and how the process works.

The Two Types of Approval You May Need

Commercial fitouts in Melbourne can require two different types of approval, and it's important to understand the difference:

1. Building Permit — issued under the Building Act 1993 (Victoria)

• Focuses on construction safety, structural integrity, fire safety, and compliance with the National Construction Code (NCC)
• Administered by a private building surveyor (not the council)
• Most commercial fitouts require a building permit

2. Planning Permit — issued by your local council

• Focuses on land use, change of use, heritage impacts, and neighbourhood amenity
• Required only in specific circumstances (change of use, heritage buildings, certain zones)
• Takes longer than a building permit (weeks to months vs days to weeks)

Many fitouts need a building permit but not a planning permit. Some need both. A small number need neither.

When Is a Building Permit Required for a Commercial Fitout?

Under the Building Act 1993 and the NCC, a building permit is required for commercial fitout work that involves any of the following:

Structural work

• New partition walls (even non-load-bearing in many cases)
• Mezzanine floors — always require a building permit
• Removing or modifying existing structural elements

Services modifications

• Electrical work beyond minor general work (adding circuits, upgrading switchboard)
• Modifications to fire services (moving sprinkler heads, adding smoke detectors to new areas)
• New or modified hydraulic work (bathrooms, kitchen plumbing)
• HVAC system installation or major modifications

Change of occupancy classification

• If you're changing the use of a space in a way that changes its NCC classification (e.g., creating an office within an industrial building, converting a storeroom to an office, or opening a restaurant in a space not previously used for food service)

New or extended wet areas

• Bathrooms, showers, commercial kitchens, or any new wet area construction

External works

• Shopfront modifications, awnings, external signage structures in some cases

When Is a Building Permit NOT Required?

Minor works that don't trigger any of the above categories are generally exempt. This includes:

• Painting and surface finishes (no structural, services, or use change)
• Replacing like-for-like floor finishes (carpet replacement, vinyl replacement)
• Installing freestanding furniture and workstations
• Replacing light fittings in existing positions (single-phase, standard circuits)
• Replacing plumbing fixtures in existing positions
• Minor, non-structural partition alterations in some cases (seek advice)

Important: "Not needing a permit" is not the same as "not needing council approval." Your landlord's building management may have their own approval process for any works — check your lease.

When Do You Need a Planning Permit?

A planning permit from your local council is required in circumstances that go beyond construction safety — it's about land use and neighbourhood impact.

Change of use

If you're operating a different type of business in the space than what it was previously approved for, a planning permit for change of use may be required. Examples:

• Converting a retail tenancy to a restaurant or bar
• Opening a gym or childcare centre in a commercial tenancy
• Creating office use within an industrial zone

Heritage buildings and overlays

Properties in heritage overlay areas (much of Melbourne's inner city and inner suburbs) may require planning permits for works that would otherwise be exempt — particularly external works, changes to shopfronts, and works in listed buildings.

Liquor licence

New bars and restaurants in Melbourne typically need a planning permit as part of the liquor licensing process, particularly in locations near residential areas.

Outdoor dining and advertising

Permits are often required for outdoor dining areas and illuminated signage.

How Long Do Commercial Fitout Permits Take in Melbourne?

Building permits

Most straightforward commercial fitout building permits in Victoria take 2–4 weeks from submission of complete documentation. Complex projects or those requiring specialist input (fire engineer, structural engineer) take longer.

Working with an experienced building surveyor — which your fitout company should coordinate — can reduce delays significantly.

Planning permits

Planning permits vary enormously:

• Simple change of use in a non-contested zone: 4–8 weeks
• Restaurant or bar in inner Melbourne near residential: 2–5 months
• Heritage impacts or complex applications: 3–9+ months

The planning permit process is the single most common cause of fitout project delays in Melbourne. If a planning permit is required, it must be obtained before applying for a building permit in most cases.

Who Is Responsible for Getting the Permits?

In a commercial fitout context, the building permit is typically the responsibility of the builder (your fitout company). At Spacez, we manage the building permit application as part of the fitout project:

• We engage a private building surveyor
• We provide all required documentation (drawings, specifications, engineer certificates)
• We receive the permit and proceed with construction
• We obtain an occupancy permit or certificate of final inspection at project completion

The planning permit, if required, is typically the responsibility of the landowner or tenant, not the builder. We can prepare the documentation required for a planning permit application and liaise with your planning consultant or council.

What Happens If You Don't Get a Required Permit?

This is important: proceeding without a building permit where one is required is illegal under Victorian law and creates real risk:

For the business owner:

• Personal liability for non-compliant works
• Difficulty obtaining building insurance
• Potential requirement to demolish and rectify works at your own cost
• Complications at end of lease (make-good obligations become complex)

For the fitout company:

• Exposure to prosecution under the Building Act
• Professional liability

In practice:

Council building surveyors and private building surveyors can issue stop work orders and enforcement notices at any time. In Melbourne's commercial property market, compliance is increasingly scrutinised — particularly at lease end, change of ownership, or following complaints.

If you're inheriting a fitout done without permits, we can advise on regularisation pathways.

Do I Need Landlord Approval as Well?

Building permits are separate from landlord approval. Most commercial leases require tenants to obtain landlord consent before making any alterations to the premises. This typically involves:

1. Submitting design documentation to the building manager or landlord's representative
2. Obtaining written approval (sometimes called "Works Approval" or "Licence to Alter")
3. Meeting any conditions set by the landlord (approved contractors, insurance requirements, make-good obligations)

At Spacez, we prepare all landlord submission documentation and manage the approval process. Landlord approval typically takes 1–4 weeks for straightforward fitouts.

Practical Timeline: Approvals in a Melbourne Commercial Fitout

Here's how approvals typically fit into a fitout project timeline:

For projects requiring a planning permit, add the planning permit process before the above sequence — this can add 2–6+ months to the overall timeline. Engage a planning consultant early.

Frequently Asked Questions

Can my fitout company apply for the building permit on my behalf?

Yes. In Victoria, the owner of the building or the builder can apply for a building permit. Spacez manages the building permit application as part of every fitout project — you don't need to handle this yourself.

How much does a building permit cost for a commercial fitout in Melbourne?

Building permit fees in Victoria are calculated based on the value of the works. For a $500,000 fitout, expect building permit fees of approximately $1,500–$3,000. Private building surveyor fees are separate and typically $2,000–$6,000 for standard fitouts.

Does a shop fitout need a building permit?

Almost always yes, if it involves new partitions, electrical work, or changes to services. Purely cosmetic works (painting, shelving, flooring replacement) may not require a permit — but confirm with your fitout company before assuming.

What's the difference between a building permit and a certificate of occupancy?

A building permit authorises construction. A certificate of occupancy (or certificate of final inspection) is issued after construction is complete, confirming the works comply with the permit. In Victoria, your building surveyor will conduct a final inspection and issue this certificate. You need it before occupying the space.

Can I use my space while the fitout is being built without a certificate of occupancy?

You can continue to use adjoining areas or the existing portion of the space. The new fitout areas should not be occupied until a certificate of final inspection is issued.

Talk to Spacez About Your Fitout Approvals

Understanding what approvals your fitout needs — and managing the process — is a core part of what Spacez does. We'll tell you upfront what's required for your specific project, prepare all required documentation, and manage the process so it doesn't delay your opening date.

Request a Free Fitout Consultation →

Spacez | Commercial Fitout Melbourne | Building Permits & Approvals Managed