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  • Writer's pictureSwarup Dutta

Subdivision- process and costs in Victoria

Updated: Apr 11, 2020

Subdivide into two lots
Two lot subdivision

The Process.

There are several stages involved with the Subdivision. They are summarised as follows:

· Apply for a planning approval for subdivision. When the permit is granted it will contain conditions which must be satisfied.

· Council also certifies the plan of subdivision, which legally approves the subdivision under the Subdivision Act 1988

· Thereafter the Applicant must meet the Permit conditions (eg installing the required services like sewer, power etc or building crossover if required under the Permit). On completion Statement of Compliance is issued.

· A registered surveyor draws up the subdivision plan which is certified by Council.

Your conveyancer or representative can then lodge the certified Plan of Subdivision and Compliance Certificate with Land Victoria, which allows new titles to be issued for each lot created under the subdivision.

When can you sell the new lot?

Technically you can sell the new lot(s) after they are registered with Land Victoria which issues the titles to each new lot created.

However, if you are not prepared to do those essential works required by the Planning Permit condition ( eg installing sewer, water, telecoms , connecting to storm water discharge point and other services to new lots, creating driveways or crossovers) a purchaser who maybe a builder could be interested in purchasing the backyard prior to each lot being registered with Land Vic and negotiate a price with you where the builder carries out the works required by the Conditions of the Permit and obtains the Certificate Of Compliance. You can then register the lots.

Or you could enter into a Section 173 Agreement with your council promising to do those essential works in future. This promise would be registered on your title so a prospective buyer will be aware of the condition.

Subdivision Costs.

There are a number of items to consider.

The following are some of those costs you must budget for.

All of them might not apply to your subdivision.

These costs are approximate and could increase at any time.

· Approximate contribution fees payable directly to Council. Usually applies to more than 2 lot subdivision and varies from council to council. It can be 5% of the land cost and more.

· All costs and fees shown on this website are approximate and to be verified by the land owner.

First stage: Council ( fees applicable at 2017, are approximate and to be verified)

$1278 - Council (subdivision approval fee)

$700 - Drainage plan checking and supervision fees ( by council)

$ 650 - Sewerage contribution (if you have commenced building this has already been paid)

$ 650 - Water supply contribution (if you have commenced building this has already been paid)

$3400 - Per Power pit – serves up to 6 units. May need more depending on configuration of development (if you have commenced building this has probably already been paid)

$3500 varies - Drainage contribution (applies in some Councils where no on site detention is required)

$ 600 - Telecommunications (NBN) report (to be provided by an authorised and accredited Telstra contractor)

$2000 - Sec. 173 agreement (required if titles are required prior to completion of development)

$5,000 - Bond per lot for any incomplete works

$TBC - Land Surveyors fees for Re establishment survey and drawing up the Plan of Subdivision

$2500 - Crossover widening or reinstatement approx.

$8000 - Onsite detention

$18000 - New driveway ( depends on length of the driveway)

Second stage: Land Registry

$ 944.80 - Land Registry registration fee

$ 800 - Solicitor/Conveyancer

$ 400 - Bank endorsement fee (if mortgaged).

$600 TBC - Land surveyor fee per lot to be pegged


Land Purchase Price

Stamp Duty

Finance Application Fee

Conveyancing cost

Pre Purchase Reports

Council Application fee

Council Contribution Fee

Marketing costs

Agents Fee

Legal fees

Interest rate

Holding cost for Land

Interest on Construction loan

Tax if applicable on Profit


Land Survey

Soil Test


Structural Engineer

Civil Stormwater Engineer



Landscape Designer

Construction documentation

Other Reports

Project Management fee

Subdivision cost

Council Application fee

Council Contribution Fee

Electricity fee

Drainage fee


Build Cost




Letterbox etc

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