Every new lot in Victoria starts life as a line on a plan, and the rules that turn that line into a separate title sit in one statute: the Subdivision Act 1988. Much of what is written about it is statute text and council forms. This guide is the plain-English version for developers, builders and project managers, covering what the Act controls, the order things happen in, who signs off along the way, and how to check for recent changes.
It is general information, not legal advice. For anything specific to a site, talk to your licensed surveyor, planner or lawyer.
What the Subdivision Act 1988 governs, and what it does not
The Subdivision Act 1988 sets the procedure for subdividing land in Victoria. It covers:
- certification of the plan of subdivision by council
- referral of the plan to referral authorities
- the statement of compliance
- registration of the plan, which creates the new titles
What the Act does not do is decide whether a subdivision is allowed. That question belongs to the planning system under the Planning and Environment Act 1987, through the planning permit. In practice, the permit sets the conditions, and the Subdivision Act process is how those conditions are checked off before titles issue.
The same split applies to section 173 agreements. They often appear as permit conditions on subdivisions, but they are made under the Planning and Environment Act, not the Subdivision Act.
The key steps, in order
Most subdivisions in Victoria move through the same sequence:
- Planning permit. The permit allowing the subdivision sets the framework and the conditions for final approval.
- Plan of subdivision. A licensed land surveyor prepares the plan, showing lots, areas and any easements. It must be consistent with the permit.
- Certification. Council certifies the plan under the Subdivision Act.
- Referral authority requirements. Each referral authority confirms to council that its conditions have been met.
- Works and other conditions. Civil works, agreements and any other permit conditions are completed.
- Statement of compliance. Council issues it once the requirements are satisfied.
- Registration. The plan and statement of compliance are lodged with Land Use Victoria, which creates the new titles.
Most of this now runs through SPEAR (Surveying and Planning through Electronic Applications and Referrals), the Victorian Government’s online system. Licensed surveyors use it to lodge certification and statement of compliance applications, councils use it to certify plans and issue statements, and referral authorities use it to respond to referrals.
Who the players are
- Council. As responsible authority, council issues the planning permit, certifies the plan and issues the statement of compliance.
- Referral authorities. Typically the water corporation and other servicing authorities, plus the road authority where a road is affected. Each sets requirements and confirms when they are met.
- The licensed land surveyor. Prepares and signs the plan, and usually manages the SPEAR applications.
- The developer. Holds the permit, funds and delivers the works, and meets the conditions.
- Land Use Victoria. Registers the plan and issues the new titles.
- The civil contractor. Builds the conditioned works that sit between certification and the statement of compliance.
The developer’s obligations that bite during civil construction
The stretch between certification and the statement of compliance is where the civil works happen. Council will not issue a statement of compliance until the permit conditions and referral authority requirements are satisfied, and many of those are physical works.
Depending on the permit, conditions can include:
- roads, kerb and channel, and drainage built to council’s standards
- water and sewer connections to the servicing authority’s requirements
- power and telecommunications infrastructure
- landscaping and public open space works
- a section 173 agreement, where the permit requires one
Council can also require public open space as part of a subdivision, under section 18 of the Act.
The practical point is simple. A statement of compliance waits on the slowest condition. If a drainage design is still with the authority, or a set of as-constructed drawings has not been signed off, the titles wait too. Our subdivisions page covers the works VK Civil delivers, and the September subdivision mistakes post covers the early decisions that hold projects up.
What changed in 2026
The Subdivision Act 1988 is amended from time to time, so the version you read matters. On legislation.vic.gov.au, the Act was updated twice in 2026: one version took effect on 1 July 2026, and the current version took effect on 9 September 2026.
Before relying on any section of the Act, check the authorised version in force on legislation.vic.gov.au and its amendment notes. If a project could be affected by a recent change, ask your lawyer how it applies before lodging anything.
Where the Act touches civil costs
The Act itself does not set prices, but it shapes what gets built and when. The cost of a subdivision’s civil works is driven by:
- the permit conditions council attaches
- each referral authority’s requirements for water, sewer, drainage, power and roads
- council’s engineering standards for roads and drainage
- the time it takes to get designs approved and works signed off before the statement of compliance
A land development contractor Melbourne developers can rely on will price these drivers early, before the permit conditions are locked in. Our civil works page sets out the full range of services.
Five checks before lodging anything
- Title search. Check the title for covenants, easements, caveats and mortgages. Registered interests must consent before a plan can be registered.
- Planning permit status. Confirm the permit is current and read every condition, including any that must be met before certification.
- Authority requirements. Find out early what each referral authority will ask for, and how long their approvals take.
- Surveyor engagement. Bring a licensed land surveyor in at the start. They prepare the plan and usually run the SPEAR applications.
- SPEAR readiness. Confirm with your surveyor that the certification and statement of compliance applications can run through SPEAR with your council.
Subdivision Act 1988 FAQs
What is the Subdivision Act 1988?
It is the Victorian law that sets the procedure for subdividing land: certifying the plan, referring it to authorities, issuing the statement of compliance and registering the plan to create new titles. Whether a subdivision is allowed is decided under the Planning and Environment Act 1987.
Does the Subdivision Act apply to a 2-lot subdivision?
Yes. A two-lot subdivision still needs a plan prepared by a licensed land surveyor, certified by council, with a statement of compliance before Land Use Victoria will register it and issue the new titles.
Who issues the statement of compliance?
Council issues it, once the permit conditions and referral authority requirements are met. Land Use Victoria will not register a plan of subdivision without one.
What changed in the 2026 amendments?
The Act was updated twice in 2026. One version took effect on 1 July 2026, and the current version took effect on 9 September 2026. For what each update changed, check the authorised version and its notes on legislation.vic.gov.au, or ask your lawyer.
Talk to us before the permit conditions are set
The earlier a civil contractor sees the conditions, the fewer surprises there are on the way to a statement of compliance. If you are planning a subdivision in Victoria, contact the VK Civil team to talk through the works.