Rossi / Neeson investor warning

Queensland planning

Why Queensland Development Approvals Take Longer Than the Timeline Says

Code assessable, impact assessable, and the gap between the statutory clock and the real one. What drives approval delay and how to test a projection.

Almost every development feasibility rests on an assumed approval date. Understanding how that date is derived — and why it so often slips — is one of the more useful things an investor in a Queensland project can learn.

The framework

Development assessment in Queensland operates under the Planning Act 2016 and the Development Assessment Rules made under section 68 of that Act. Applications fall into categories that determine how they are assessed:

  • Accepted development — no application required, subject to meeting requirements
  • Code assessable — assessed against the assessment benchmarks in the planning scheme
  • Impact assessable — assessed against the whole planning scheme, requires public notification, and attracts appeal rights for submitters

The distinction between the last two is significant. Code assessable applications must be decided against defined criteria and cannot be refused on general discretionary grounds. Impact assessable applications go through public notification — 15 business days — and a submitter who objects gains a right of appeal against the decision.

A project described as code assessable is therefore being described as lower risk and faster. Whether it is code assessable depends on the planning scheme, the zone, and the specifics of what is proposed.

The statutory clock

The DA Rules set out a staged process with defined periods:

StagePeriod
Confirmation noticeFollowing a properly made application
Information requestGiven within the information request period
Applicant’s responseCommonly up to 3 months, extendable
Public notification (impact only)15 business days
Decision period35 business days, reduced by days used in the information request period
Decision noticeWithin 5 business days of the decision

Read quickly, that looks like a few months. In practice it rarely is, and the reason is visible in the table itself.

Where the time actually goes

The applicant’s own response time. The single largest variable is usually not the council. It is how long the applicant takes to answer an information request. That period commonly runs to three months and can be extended. A request that raises engineering, flooding, traffic or infrastructure issues requires new consultant work, and consultants have their own queues.

Agreed extensions. The decision period can be extended by agreement. Extensions are routine and are not a sign of anything going wrong, but each one moves the date.

Referral agencies. Applications triggering state referral — for state transport corridors, vegetation, infrastructure or environmental matters — add a separate assessment with its own timeframes.

Pre-lodgement. Time spent before the application is lodged does not appear in the statutory process at all, and can run for months.

Re-scoping. If assessment reveals the proposal will not be supported as lodged, the applicant may change it. A change can restart parts of the process.

Appeals. For impact assessable applications that attract submissions, an appeal to the Planning and Environment Court adds a further period measured in months to years.

The statutory clock measures the assessment manager’s time. The project’s clock measures everything.

What this means for a feasibility

For an investor, the practical consequences are these.

Test the assumption, not the number. Ask what assessment category the project falls into, who advised on that, when the advice was given, and whether the planning scheme has changed since. A town planning report is a professional opinion at a point in time.

Ask what happens if the category is wrong. If a project assumed to be code assessable turns out to require impact assessment, the timeline extends by the notification period plus the risk of submissions and appeal. Ask what that does to the feasibility.

Model the delay against the fee structure. This is the step that is almost always skipped. Take the approval date in the feasibility, add twelve months, and read the management fee clause again. If the fee entitlement is exhausted before approval issues, the project is consuming construction capital to pay for management, and the feasibility that persuaded you no longer describes the project you are in.

Ask about holding costs during delay. Rates, land tax, insurance, interest and consultants accrue throughout. A twelve-month delay on a project carrying meaningful holding costs is not a neutral event.

Reasonable questions to ask

  • What is the assessment category, and on what basis?
  • Who prepared the town planning advice, and when?
  • Have there been pre-lodgement discussions, and what came out of them?
  • Are any state referral triggers engaged?
  • What is the assumed approval date, and what is the downside case?
  • What happens to fees, holding costs and funding if approval takes a further twelve months?

None of these are hostile questions. They are the questions a competent developer will have already answered for themselves, and a promoter who cannot answer them has not done the work.

The general lesson

Approval delay is the most common and least dramatic way development capital is consumed. Nothing goes wrong in a way that makes a good story. The application simply takes longer than assumed, costs accrue against it, and one day the project is out of money without a sod having been turned.

Test the timeline before you invest, and read the fee terms as though the timeline will slip. It usually does.