Subdivision contractors in NSW

A residential subdivision refers to the splitting of one plot into several parcels of land for habituation purposes. A residence is then constructed on each separate lot.

Residential subdivisions take many forms, from small communities with just a handful of homes to expansive estates with hundreds of houses.

Your project will be considered an industrial subdivision if the land is zoned for applications such as manufacturing, warehousing, storage, distribution of goods or services, shipping and transport, business administration, research and development, commercial machinery repair and maintenance, utilities provision, mining and waste management.

The chief types of residential and industrial subdivisions are Torrens title, strata title and community title.

Torrens title subdivision

The most common type of subdivision, a Torrens title subdivision splits an existing plot of land into numerous allotments. When a site is subdivided as Torrens title, each resulting lot is owned solely by its buyer, typically as freehold land.

If you wish to develop a torrens title subdivision, then you must submit a DA for Council approval.

Strata title subdivision

Strata title subdivision is a popular choice for apartment buildings and industrial developments that will be used by multiple business owners. This title allows individual ownership of each separate portion of land within the overall site, as well as an undivided share to common areas (such as gardens and carparks) that are managed by the owners’ corporation and funded by the owners through strata fees.

A strata subdivision can be classified as complying developments in certain cases. If your subdivision is not considered complying development, then you must submit a DA for Council approval.

Community title subdivision

Community title schemes take features from both the Torrens title and strata title approaches. Lots are privately owned, but accompanied by shared common areas such as roads, walkways and gardens. As a result, residents directly manage and fund maintenance activities that would otherwise be handled by the local Council. Every community title subdivision must have a Community, Neighbourhood and/or Precinct plan in place.

Before you create a community title subdivision, you must lodge a DA with your local Council.

In Australia, the minimum land size or plot size for subdivision differs depending on the local Council. However, as a general rule of thumb, most plots exceeding 700 sqm are eligible.

To confirm the regulations surrounding plot size and subdivision in your area, please contact your local Council.

Council approval is required for the majority of industrial and residential subdivision developments. This is typically applied for via a Development Application (DA).

The subdivision process in NSW will vary according to the distinct circumstance of your project. However, the general steps are as follows:

1. Subdivision plan

Confirm with your local Council that it is possible to subdivide your land given zoning restrictions. Next, engage a land surveyor and town planner to perform a survey of the land and prepare a plan of subdivision that satisfies all criteria.

2. Development Application

If necessary, submit a Development Application (DA) to your local Council and pay the required fees upon approval. Often, development consent is subject to certain conditions being met. You must finalise your subdivision plan after Council confirms that you have satisfied these conditions.

As of 1 July 2021, DAs must be lodged via the NSW Planning Portal.

3. Subdivision Works Certificate

Apply for a Subdivision Works Certificate (SWC), depending on the conditions within the notice of consent provided by Council upon approval of your DA. For example, you may be required to complete civil works, road works, water works or inter-allotment drainage.

Importantly, these activities can only commence once a SWC has been issued. Council will then inspect the finished work to ensure adherence to the endorsed SWC plan.

From 1 July 2021, you must lodge your SWC application through the NSW Planning Portal.

4. Subdivision Certificate

Once your subdivision is complete, apply for a Subdivision Certificate. This certifies that your subdivision plan has been actioned in compliance with the development consent or Complying Development Certificate (CDC). It also permits the subdivision plan to be registered with NSW Land Registry Services.

After 1 July 2021, all SC applications must be lodged on the NSW Planning Portal.

Registration

Submit the approved subdivision plan, administration sheet and 88b Instrument (if necessary) to NSW Land Registry Services for registration. Once reviewed, new titles will be issued for your subdivision.

For personalised advice and assistance with this process, please do not hesitate to contact our experienced subdivision contractors in NSW.

A Subdivision Works Certificate (SWC) confirms that subdivision work will be completed in line with development consent and in compliance with Council regulations. It functions in the same way as a construction certificate but for subdivision works, such as roadworks, earthworks and sewerage works, in relation to conditions of development consent.

You must obtain a SWC before commencing any subdivision works associated with a development consent for subdivision. SWCs may be issued by your local Council or a private certifier on the Building Professionals Board’s Register. Depending on your Local Government Area, it is possible to apply for a Subdivision Works Certificate online via the NSW Planning Portal.

It takes approximately eights weeks on average to secure subdivision approval. However, this estimate varies significantly according to the proposed development and the local Council reviewing your DA.

Additionally, the Council may approve your subdivision development subject to certain conditions. Such conditions often concern access, the provision of water supply and power. Therefore, the nature and extent of work required to meet these conditions may affect the approvals timeframe.

In NSW, it generally takes between one and five business days to register a subdivision once the application has been submitted. The NSW Land Registry Services aims to either register, requisition, refer or reject 70% of applications within two business days and 100% within 5 business days.

From the development application to project completion, a standard subdivision tends to take approximately one year in NSW. However, the duration of your project depends on a myriad of factors, such as the scope and complexity of works required, as well as the nature of any conditions to be met for Council approval.

To receive a tailored estimate for your project timeline, please contact our subdivision contractors today. We are committed to ensuring your subdivision development is completed within schedule.

No. Subdivision expenses are not tax deductible in Australia, as they are considered to be part of the property’s building cost base. Therefore, it is not possible to claim a deduction against resulting rental income.

While the subdivision itself is not liable for taxation, it is subject to capital gains tax (CGT) in the event of any future sale. Following subdivision, each parcel of land is considered a separate asset for CGT purposes. Importantly, the date you acquired the subdivided plots is viewed as the same date that you obtained the initial land.