Local councils make decisions about business permits that can significantly impact your operations—from refusing a footpath trading permit to imposing conditions on a food licence or denying a development application.

When you disagree with a council decision, you have legal rights to dispute it.

This guide explains the dispute resolution pathways available across Australia.

Common Council Decisions That Can Be Disputed

Business owners may dispute various council decisions including: refusal of a footpath trading permit; imposition of unreasonable conditions on a permit; refusal of a food business licence; cancellation or non-renewal of an existing licence; issuance of an improvement notice or prohibition order; fire safety orders requiring expensive upgrades; planning and development permit refusals; and zoning or land use determinations affecting your business [citation:3][citation:5][citation:9].

Step 1: Internal Council Review

Before escalating to external tribunals, request an internal review by the council. Most councils have formal review processes where a different officer or committee re-examines the decision.

To request an internal review: obtain the written decision notice (councils must provide reasons for their decisions); submit a written request for review within the specified timeframe (typically 14-28 days); clearly state which aspects of the decision you dispute; provide any additional evidence or arguments not considered originally; and request a meeting with the reviewing officer if appropriate.

Internal reviews are faster and less expensive than external appeals, may result in the council changing its decision without further action, and preserve relationships with council staff [citation:3].

Step 2: Alternative Dispute Resolution

If internal review does not resolve the dispute, consider alternative dispute resolution (ADR) options.

Many councils offer mediation services where a neutral third party helps both sides reach an agreement.

Mediation is typically less adversarial than formal proceedings, less expensive than tribunal hearings, and faster than waiting for a tribunal decision.

Both parties must agree to mediation, and any agreement reached is binding. Check with your council about available ADR services before proceeding to a formal appeal [citation:5].

Step 3: Appeal to the Civil and Administrative Tribunal

Most states have civil and administrative tribunals that hear disputes with government decisions.

These tribunals are designed to be more accessible and less formal than courts.

Each state has its own tribunal with jurisdiction over council decisions [citation:5].

Victoria - VCAT

The Victorian Civil and Administrative Tribunal (VCAT) hears disputes about council planning permits, building approvals, and some licensing decisions.

Application must be made within strict timeframes (often 28 days from the decision date).

VCAT can affirm the council's decision, vary conditions, or substitute its own decision.

Legal representation is permitted but not required. VCAT decisions are binding on both parties [citation:5].

NSW - NCAT

The NSW Civil and Administrative Tribunal (NCAT) handles disputes about council decisions including development approvals, building certificates, and some licensing matters.

Time limits for applications vary by matter type. NCAT can order councils to issue permits, vary conditions, or quash decisions [citation:9].

Queensland - QCAT

The Queensland Civil and Administrative Tribunal (QCAT) hears disputes about council decisions under various state acts.

Application timeframes depend on the specific legislation governing your matter.

Critical note: Each tribunal has strict application deadlines. Missing the deadline typically means losing your right to appeal. Check the specific timeframe for your matter immediately upon receiving an adverse decision. Timeframes range from 14 to 60 days depending on the decision type and jurisdiction.

Step 4: Judicial Review in Courts

If tribunal options are exhausted or unavailable, you may seek judicial review in a state Supreme Court or the Federal Court.

Judicial review is limited to errors of law—the court does not re-hear the facts but examines whether the decision-maker acted within their legal authority.

Grounds for judicial review include jurisdictional error (the council considered irrelevant matters or failed to consider relevant matters), procedural unfairness (you were not given an opportunity to be heard), and Wednesbury unreasonableness (a decision so unreasonable that no reasonable decision-maker could have made it).

Judicial review is significantly more expensive and time-consuming than tribunal appeals, and legal representation is essential.

Most business disputes are resolved at the tribunal level, with judicial review reserved for cases involving serious legal errors [citation:5].

Key Principles from Case Law

Recent cases illustrate important principles when disputing council decisions. In Courthouse Business Group Pty Ltd v Moreland CC [2014] VCAT 366, VCAT affirmed a council's decision to refuse a development permit where the proposal exceeded height limits in the relevant Design and Development Overlay.

The Tribunal emphasised that while planning schemes contain discretionary provisions, the vision expressed in the planning scheme must be given significant weight.

The lesson for business owners is that challenging a council decision requires showing that your proposal complies with—or can be justified under—the relevant planning instruments, not simply that you disagree with the outcome [citation:5].

Regarding retail leases and the Retail Leases Act, Lake Fyans Recreational Area Committee of Management Inc v Halski Pty Ltd & Anor [2025] VCC 1506 established that parties cannot contract out of the Retail Leases Act 2003 (Vic) by simply including clauses claiming exemption.

The court looks at the reality of obligations under the lease, not the wording.

Any clause attempting to exclude the Act is void under section 94. This principle applies broadly—council decisions cannot be circumvented by clever drafting or technical arguments if the substance of your application does not comply with regulations [citation:8].

Practical Tips for Disputing Council Decisions

  • Act quickly: Time limits for appeals are strict. Upon receiving an adverse decision, immediately note the appeal deadline in your calendar.
  • Document everything: Keep copies of all applications, correspondence with council, inspection reports, emails, and notes of phone conversations. A complete record is essential for any appeal.
  • Get legal advice early: Before filing any appeal, consult a solicitor specialising in local government or administrative law. They can advise on the strength of your case and the appropriate forum.
  • Consider costs: Tribunal appeals are less expensive than court proceedings but still incur costs for application fees, legal representation (if used), and potentially the other party's costs if you lose. Weigh these against the value of the permit or decision you are seeking.
  • Negotiate before litigating: Many disputes can be resolved through negotiation or mediation without formal proceedings. Councils often prefer to avoid litigation and may be willing to find a compromise if approached constructively.
  • Understand the standard of review: Tribunals and courts give deference to council decisions as the primary decision-maker. You bear the burden of proving the decision was wrong, not merely that you disagree with it [citation:5].