Development Approval (DA)
Development Approval (DA) is the planning consent granted by a local council or relevant authority that permits a proposed development to proceed. In Australian development finance, DA is a key prerequisite — most lenders will not approve a construction facility without an active, valid DA in place.
Why It Matters
Without DA, there is no confirmed right to build. Lenders treat DA as a de-risking milestone because it confirms the project is legally permissible and defines what can be built. For developers, having DA secured before approaching lenders significantly strengthens the finance application and can unlock better terms.
How It Works
- The developer lodges a DA application with the local council, including architectural plans, planning reports, and supporting documentation.
- Council assesses the application against planning controls and may request amendments or additional information.
- If approved, the DA specifies what can be built, any conditions, and the approval's expiry timeframe.
- With DA in hand, the developer can approach lenders for construction finance.
Common Use Cases
- Prerequisite for townhouse development finance applications
- Purchasing DA-approved development sites
- Assessing project feasibility and GRV before committing to a site
- Planning timeline for construction drawdown commencement
Related Switchboard Resources
- Townhouse Development Finance
- Site Acquisition
- Gross Realisation Value (GRV)
- Fixed-Price Building Contract
- Pre-Approval
For planning information specific to your council area, visit your local council's planning portal or planning.vic.gov.au.
Do I need DA before applying for development finance?
Most lenders require DA as a condition of approval. Some will issue indicative terms subject to DA, but formal approval and drawdown typically require DA to be in place.
How long does DA take?
Timeframes vary by council and project complexity. A straightforward townhouse DA might take 3–6 months; complex or contentious applications can take 12+ months. Pre-application meetings with council can help manage the timeline.
Can DA expire?
Yes — DA approvals have an expiry period (typically 2–5 years depending on the jurisdiction). If construction has not commenced before expiry, the approval lapses and a new application may be required.