Finding the right premises is one of the biggest steps a growing business takes. The location looks good, the rent works and the landlord is keen to sign.
Then someone asks a simple question. Is your business actually allowed to operate there?
In Western Australia, the answer depends on planning rules, and getting it wrong can be costly. South Perth based Cornerstone Town Planning is a town planning consultancy that prepares and manages development applications for commercial, industrial, mixed-use and other projects across Perth and regional WA.
This article explains what “change of use” means, why it matters before you sign a lease, and the steps to take so your move goes smoothly.
What change of use means
Every property in WA sits within a zone under a local planning scheme. Each council has its own scheme, and it lists the land uses allowed in each zone.
A use is simply what the property is used for. Shop, office, restaurant, consulting rooms, warehouse, gym and light industry are all examples of land uses.
When a new business moves in and uses the space for something different from the approved use, that is a change of use. Turning an old office into a cafe is a change of use. So is turning a warehouse into a fitness studio or a shop into a medical clinic.
Why it matters before you sign
A lease is a legal commitment. If you sign before checking planning, you could end up paying rent on a space you can’t legally trade from.
Some uses are not permitted in a zone at all. Others need development approval from the council first. Approval can take time, and the council may set conditions about things like parking, opening hours, signage or noise.
If you open without the approval you need, the council can take compliance action. That can mean stopping work, fines or being told to close until the matter is sorted out.
How zoning tables work
Most local planning schemes in WA include a zoning table. It shows each land use against each zone, with a symbol that tells you how that use is treated.
The common symbols are:
- P means the use is permitted, as long as it meets the scheme’s requirements.
- D means the use is not permitted unless the council grants approval.
- A means the same as D, but the council must advertise the proposal before deciding.
- X means the use is not permitted in that zone.
Uses with a P are usually the easiest to set up. A D or A use means an application, and A uses can draw comments from neighbours. An X use generally can’t go ahead without a change to the scheme itself.
Each scheme has its own definitions too. A “shop” in one scheme may not cover the same activities as a “shop” in another, so read the definitions carefully.
Exemptions that may apply
The WA Government has made changes in recent years to cut red tape for small businesses. Under the state’s Planning and Development (Local Planning Schemes) Regulations 2015, some changes of use in certain zones no longer need development approval.
These exemptions generally apply in commercial, centre, mixed-use and light industrial type zones. They cover uses such as smaller shops, cafes and restaurants, and consulting rooms, but they come with conditions. Size limits, the location of the zone and whether the building is being altered can all make a difference.
Heritage-listed places often have different rules. Even when an exemption applies, you will still need to meet building, health and other approvals that sit outside the planning system.
Because the details are specific, it is wise to confirm in writing with the council, or get advice, before relying on an exemption.
Steps to take before you commit
A bit of homework at the start can save months of stress later.
Start by finding the zoning of the property. Most councils have an online mapping tool, or you can ask the planning department.
Next, check the zoning table and use definitions in the local planning scheme. Work out which use class best fits your business and how it is treated in that zone.
Ask the landlord or agent what the current approved use is. If they don’t know, the council may be able to search its records.
Then look at the practical side. Parking, deliveries, bin storage, signage, noise and opening hours can all come up in an application.
If approval is needed, try to make the lease conditional on getting it. Talk to your lawyer about wording that protects you if approval is refused or comes with conditions you can’t meet.
What goes into an application
A development application for a change of use usually includes a completed application form, the fee, plans of the site and building, and a written report.
The report explains what the business will do and how it meets the planning scheme and any relevant policies. It might cover staff numbers, customer numbers, operating hours, parking and how impacts on neighbours will be managed.
Larger or more complex proposals may need extra reports, such as traffic, acoustic or waste management studies. Some may go to a Development Assessment Panel rather than the council.
A clear, well-prepared application tends to move through assessment with fewer delays. Missing information is one of the most common reasons applications stall.
When to get help
Plenty of business owners handle simple change of use applications themselves. If the use is clearly permitted and the site has no issues, the process can be fairly straightforward.
Help from a town planner is worth thinking about when the use is discretionary, the site has heritage or parking issues, neighbours are likely to object or you are on a tight timeline. A planner can review the scheme, talk with the council before you lodge and prepare the application and supporting report.
If an application is refused, or approved with conditions that don’t work, there may be a right of review through the State Administrative Tribunal. Advice early on can help you avoid that point.
A simple checklist for your next move
Before you sign a lease on new business premises in WA, take these steps:
- Confirm the zoning of the property.
- Check how your use is treated in the local planning scheme.
- Find out whether an exemption applies, and get it confirmed.
- Ask about the current approved use.
- Make the lease conditional on approval if one is needed.
Doing this early gives you a clear picture of cost and timing. It also means you can open the doors knowing the business is set up on the right footing.