“Existing” ground level – what it is and how it is determined

Mark Evans • March 7, 2024

Most land in NSW is subject to controls which limit the height of buildings in a neighbourhood. The height control is usually expressed as the height of a building (in metres) above “existing” ground level. But, determining “existing” ground level can be difficult, for example where the site has been heavily excavated, built upon or is irregular in form. This article considers the definition of existing ground level in NSW planning law and cases in the NSW Land and Environment Court.

Usually, the height of building control takes the form of clause 4.3 in most local environmental plans:


“4.3(2) The height of a building on any land is not to exceed the maximum height shown for the land on the Height of Buildings Map.”


The Height of Buildings Map will (usually) prescribe a maximum height, for example 8.5 metres or 12 metres. The “height of a building” is defined in the Standard Instrument as:


building height (or height of building) means—


(a) in relation to the height of a building in metres—the vertical distance from ground level (existing) to the highest point of the building, or


(b) in relation to the RL of a building—the vertical distance from the Australian Height Datum to the highest point of the building,


including plant and lift overruns, but excluding communication devices, antennae, satellite dishes, masts, flagpoles, chimneys, flues and the like”.


(our emphasis)


Accordingly, the highest point of a building (excluding lift overruns etc) must not be higher than the specified height (eg 8.5m) above the existing ground level. 


Existing ground level is defined in the Standard Instrument as: 


ground level (existing) means the existing level of a site at any point.”


Determining the ground level (existing) can be challenging where excavation has occurred on the site, where the site contains irregularities or where an existing building occupies the entire site.


These challenges and how they have been dealt with in the NSW Land and Environment Court (Court) are illustrated in the cases below.


Land that has been excavated or built upon


Bettar v Council of the City of Sydney [2014] NSWLEC 1070 (Bettar)


Facts 


Consent was sought for a four and five storey residential flat building. An existing building occupied the entire site such that there was no longer any “ground” on the site from which “ground level (existing)” could be measured.


Council submitted that the ground level (existing) should be the ground floor of the existing building.


The Applicant submitted that the ground level (existing) ought to be extrapolated from the footpath and surrounding levels on neighbouring sites, rather than the ground floor of the building.


Decision


The Court held that once the existing building was demolished it would be impossible to determine the natural ground level and the former building on the site could no longer be discernible or relevant as a starting point for measuring the height of any new building. It would be conceivable that surrounding properties (each with existing buildings already built upon them) could end up with a variety of different height limits arising under the same development standard.


Further, the Commissioner held that Council’s approach would result in an absurd height plane which would relate only to an existing building and have no relationship to the context of the site and its surrounds. 


Adopting the Applicant’s suggested approach of extrapolating from the footpath and surrounding sites, the Commissioner held (at [47]): 


“the level of the footpath at the boundary bears topography that includes the site, and remains relevant once the existing building is demolished.”


Accordingly, the approach proposed by the Applicant was considered a pragmatic method to determine ground level (existing) and has since become informally known as the “extrapolation method”.


Key Takeaways


  • Where an existing building occupies the entire site, it may be acceptable to extrapolate ground level (existing) from the level of the footpath at the boundary of the site and from levels on surrounding sites.


  • This is particularly preferable where determination of ground level (existing) from existing buildings would result in an inconsistent and irregular height blanket across a neighbourhood under the same development standard.


Stamford Property Services Pty Ltd v City of Sydney [2015] NSWLEC 1189 (Stamford Property)


Facts


Consent was sought for the partial retention and adaptive reuse of an existing building and construction of a 19 storey building with basement parking. 


Similar issues regarding the determination of existing ground level arose as in Bettar, although on a much larger site with a steep gradient. Calculating ground level (existing) with regard to existing built form, particularly basement levels on the site would result in irregular and inconsistent height controls across the site. 


Decision


The Court accepted the Applicant’s use of the Bettar extrapolation method to arrive at ground level (existing). In the circumstances, limited survey information was available and highly developed surrounding sites in the Sydney CBD made extrapolation difficult. Nevertheless, the Court noted that the extrapolation method was still possible with limited information and that there was sufficient actual and surveyed levels from the public domain in this case to arrive at a ground level (existing) figure for the (excavated) centre of the site, being an average between two survey points, rather than a surveyed (excavated) ground level. 


The Commissioner(s) held at [285]:


“… In our view, [the extrapolation method] … provides a practical operation to the definition [of ground level (existing)], both for a greenfield site and, as here, modified site in a built environment. It places the proposed building in its context, rather than relying on the present built form of any existing development on a site”.


Further, at [286]:


“Reliance on the existing built form … means that circumstances such as the extent of excavation from site to site could lead to different height limits applying to adjoining buildings on redevelopment of any of those sites. On the information available for the site, application of Bettar results in a sloping plane across the site, and we agree … that that reflects the relationship of the proposed development to the overall topography that includes the site.”


Key Takeaways


  • The “extrapolation method” is to be preferred where it can better place the proposed building in its context, rather than relying on the present built form of any existing development on a site.


  • The availability of survey information needed to apply the “extrapolation method” may vary from site to site and may include surveyed levels in the public domain, with a figure in the centre of the site being an average between two surveyed points rather than a surveyed ground level.


Land that has not been completely built out or excavated


Strebora Pty Ltd v Randwick City Council (No. 2) [2017] NSWLEC 1575 (Strebora)


Facts


Consent was sought for a four storey residential flat building over basement carparking on a site on which a residential dwelling (well set back from all boundaries) had previously stood. The Applicant contended that ground level (existing) should be determined by reference to levels from the street frontage rather than existing areas over parts of the site. The Applicant proposed taking the ground level at the street frontage and projecting that as a height plane across the site in elevations and sections.


Council contended that this approach was not usual practice and was not consistent with what was required by the LEP definition, particularly where survey information providing limited spot levels on the site showed that the ground level (existing) was beneath the Applicant’s projected height plane.


Decision


The Court held that the “extrapolation method” (from Bettar) was not directly applicable and was not appropriate in the circumstances. 


Because the residential dwelling had not occupied the entire site, there were patches of ground within the site that could be used to reference ground level (existing) and these were at street level. Further, the fall in the site also meant that it was not appropriate to determine the maximum allowable height from ground levels at the street frontage. 


Central to the Court’s finding is the notion that the determination of ground level (existing), must bear some relationship to the overall topography and context of the site. The Commissioner held at [58]:


“In these proceedings there are no facts that would preclude the applicant determining the lowest level on an existing site directly beneath the highest part of the proposed development, to determine a maximum building height dimension. In Bettar v Council of the City of Sydney the levels at the street/footpath were taken due to the fact that a building occupied the full extent of the land. This is not the case in these proceedings. I note at paragraph [37] Commissioner O’Neil recognises “that the determination of the existing ground level should bear some relationship to the overall topography that includes the site.” Given the fall across the land it is not sufficient to only determine the maximum height of the building at the street.”


Key Takeaways


  • The “extrapolation method” used in Bettar and Stamford Property cannot be used to arrive at artificial height planes across a site where parts of the site may be surveyed to give the existing ground level.


  • The determination of ground level (existing), must bear some relationship to the overall topography and context of the site and the “extrapolation method” may not be used where it would result in an artificial height plane that does not bear a relationship to the overall topography and context of the site.


Gejo Pty Ltd v Canterbury-Bankstown Council [2017] NSWLEC 1712 (Gejo)


Facts 


Consent was sought for construction of a 6-storey mixed-use building over two levels of basement carparking. The subject sites contained two existing dwelling houses and had not been extensively excavated or built upon. The sites were irregular and contained an unusual low point which gave rise to an irregular height blanket when applying the height controls in the LEP.


The Applicant contended that the irregular characteristics of the site meant that the method of calculation used in Stamford Property and Bettar should be applied in preference to the usual method of taking the lowest level on an existing site, as shown on the site survey, directly beneath the highest part of the proposed development.


Decision


The Court did not accept the method proposed by the Applicant, instead finding that the height of the proposed buildings should first be determined by applying the LEP controls. In circumstances where the site had not been extensively excavated and the ground level was known and able to be surveyed, the Commissioner held that the height of the building should be determined by the usual method. 


With respect to unusual slopes or grades and abnormal depressions in the site giving rise to unusual height limits, the Commissioner held at [25]:


“I do not accept that the method used by the Commissioners to calculate the ground level (existing) in Stamford Property Services Pty Ltd v City of Sydney and Bettar v Council of the City of Sydney overrules, or intends to overrule, the definitions contained in the relevant LEPs. This is clear from the comments in the joint judgment of Commissioner Pearson and Acting Commissioner Smithson at [283] of Stamford Property Services Pty Ltd v City of Sydney, in which they stated “the actual height of the proposed building must first be determined, by application of the 2012 LEP definitions.” The task undertaken by the Commissioners in those decisions is one whereby they found a way to apply the definitions contained in the LEPs in circumstances where the existing ground level is not known due to extensive development on the site. Given that there has been no extensive excavation of the site the subject of the current proposal, and the ground level is known and can be surveyed, the method used in those cases for calculating the ground level (existing) is irrelevant. Instead, the usual method of taking the lowest level on an existing site, as shown on the site survey, directly beneath the highest part of the proposed development reflects the definitions in the CLEP 2012 and should be used to calculate the building height. The fact that there is an uncharacteristic depression on the site is not relevant to this calculation, but might be relevant to the request to vary the height control considered below.”


Key Takeaways


  • Where ground level (existing) can be determined because the site has not been excavated or built upon, the extrapolation method is not intended, and should not be used to overrule the definitions contained in the relevant LEP’s. 


  • The fact that there are uncharacteristic depressions or irregularities on a site are not relevant to the calculation of building heights but will be relevant to a clause 4.6 request to vary the height controls.


Nicola v Waverley Council [2020] NSWLEC 1599 (Nicola)


Facts


Consent was sought for internal alterations and additions to a residential dwelling which included the addition of a new stair access with glass enclosure to the roof level and a new 15m2 rooftop terrace. 


An existing slab on the site made the determination of the ground level (existing) difficult. 


The Applicant contended that levels should not be taken from the existing slab and the extrapolation method should be used to take levels from the closest immediate proximity on the site where existing ground levels could be accurately determined. 


Council disagreed and argued that the use of the extrapolation method was inappropriate as the site had not been completely built out (as in Bettar and Stamford Property). 


The difference in competing interpretations determined whether the new addition of the glass stair enclosure was compliant with the height control. 


Decision


The Commissioner preferred the Applicant’s interpretation and held at [37] that the extrapolation method could be applied, even in circumstances where the site had not been completely excavated or built out:


“I agree … that the “extrapolation method” should be applied, based on the approach of selecting the levels located closest to the proposed stair enclosure. This is not inconsistent with the principle applied in Bettar and Stamford Property, which by necessity had to rely on the footpath levels outside the property boundaries because the buildings, in those cases, occupied the whole of their respective sites. In the subject development proposal the known ground levels identified are also outside the building and also closest to its exterior walls. The fact they are located within the site’s property boundaries, as opposed to outside the boundaries and on the footpath, does not derogate from the key selection criteria of closest immediate proximity.”


Key Takeaways


  • Where determination of ground level (existing) is made difficult by existing foundations or footings, it may be appropriate to use the extrapolation method either by obtaining levels from adjacent sites or within the site itself.


  • Where the particular circumstances of the case warrant the use of the extrapolation method, the levels to be used should be taken from the closest immediate proximity where existing ground can be found, whether that be within the site’s boundaries or outside the boundaries.


Summary


  • Where an existing building occupies the entire site, it may be acceptable to extrapolate ground level (existing) from the level of the footpath at the boundary of the site and from levels on surrounding sites.


  • This is particularly preferable where determination of ground level (existing) from existing buildings would result in an inconsistent and irregular height blanket across a neighbourhood under the same development standard.


  • The extrapolation method is to be preferred where it can better place the proposed building in its context, rather than relying on the present built form of any existing development on a site.


  • The availability of survey information needed to apply the “extrapolation method” may vary from site to site and may include surveyed levels in the public domain, with a figure in the centre of the site being an average between two surveyed points rather than a surveyed ground level.


  • However, the determination of ground level (existing) must bear some relationship to the overall topography and context of the site and the extrapolation method may not be used where it would result in an artificial height plane that does not bear a relationship to the overall topography and context of the site.


  • Where ground level (existing) can be determined because the site has not been excavated or built upon, the extrapolation method is not intended, and should not be used to overrule the definition and controls contained in local environmental plans.


  • The fact that there are uncharacteristic depressions or irregularities on a site are not relevant to the calculation of building heights but will be relevant to a clause 4.6 request to vary the height controls.


  • Where determination of ground level (existing) is made difficult by existing foundations or footings, it may be appropriate to use the extrapolation method either by obtaining levels from adjacent sites or within the site itself.


  • Where the particular circumstances of the case warrant the use of the extrapolation method, the levels to be used should be taken from the closest immediate proximity where existing ground can be found, whether that be within the site’s boundaries or outside the boundaries.


Require further assistance?


We have assisted many clients with issues relating to the determination of ground level (existing) and thus the applicable maximum building height of their proposed development. Often this can be a simple matter of engaging in constructive consultation with the relevant local council, or alternatively, bringing the matter before the Court for determination.


If you require advice regarding the determination of ground level (existing) of your site, or you wish to appeal against a determination of the issue by your local council, we can assist you in this process.



Please do not hesitate to call us on (02) 9145 0900 or make an enquiry below.

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By Mark Evans December 11, 2025
We explore this topic first by unpacking some fundamental principles and then by reviewing recent cases in which these issues have been examined. Introduction The starting point in understanding the scope of rights granted by an easement must always be the express terms of the easement: Westfield Management Ltd v Perpetual Trustee Company Ltd [2007] MCA 45. In the case of a right of carriageway, those terms will typically, but not always, be the standard terms from the Conveyancing Act 1919 which are: The terms are: Full and free right for every person who is at any time entitled to an estate or interest in possession in the land herein indicated as the dominant tenement or any part thereof with which the right shall be capable of enjoyment, and every person authorised by that person, to go, pass and repass at all times and for all purposes with or without animals or vehicles or both to and from the said dominant tenement or any such part thereof.  The express terms of the easement extend to the dominant owners and persons authorised by them to pass across the burdened land at all times and for all purposes. However, while the terms of the right of carriageway may be wide in scope, as a general principle an easement should be limited to that which is reasonably necessary for the effective and reasonable exercise and enjoyment of the easement: Zenere v Leate (1980) 1 BPR 9300 (McLelland J); Prospect County Council v Cross (1990) 21 NSWLR 601 per Bryson J at 607-608; Butler v Muddle (1995) 6 BPR 13,984; [1996] ANZ ConvR 147; (1995) NSW ConvR 55-745 (Young J); Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [22]. Right to build must be reasonably necessary. The grant of an easement conveys with it all ancillary rights to the owner of the benefited land that are reasonably necessary for the exercise and enjoyment of that easement. But what is reasonably necessary? Well, it is generally accepted that the owner of the benefited land is entitled to construct a road over the site of a right of carriageway if a road or paving is necessary to use the easement: N ewcomen v Coulson (1877) LR 5 Ch D 133, 143-4 (Jessel MR); Mills v Silver [1991] Ch 271, 286-7 (Dillon LJ); Gerrard v Cooke (1806) 2 Bos & Pul (NR) 109; (1806) 127 ER 565 ; Senhouse v Christian (1787) 1 Term Rep 560; (1787) 99 ER 1251 ; Zenere v Leate (1980) 1 BPR 9300 (McLelland J); Butler v Muddle (1995) 6 BPR 13,984; [1996] ANZ ConvR 147; (1995) NSW ConvR 55-745 (Young J); Kirkjian v Towers (NSWSC, Waddell CJ in Eq, 6 July 1987, unreported); Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324 (Handley AJA) at [9] . This is a right of the owner of the benefited land that is ancillary to the right of carriageway. The owner of the benefited land may enter onto the burdened land to do that which is reasonably necessary to make the grant effective – including, in the case of a right of carriageway, not only repairing it but making a road so that there is a serviceable carriageway over which vehicles can pass in poor conditions as well as in good weather. The extent of the rights to do so will turn on what is reasonably necessary in the circumstances for the dominant owner’s enjoyment of its express rights under the easement. Each circumstance is different and merely because what is proposed does not substantially interfere with the servient owner’s rights does not necessarily mean that it is reasonably necessary. In Butler v Muddle (1995) 6 BPR 13,984, at 13,986, Young J noted the “general proposition that a right of way is not the equivalent of ownership”. His Honour then explained (at 13,987, citations omitted): “... it was said that where one had a right of carriageway one could pave so that the wheels of one’s carriage did not sink into the ground. But none of that authority gives any licence to the dominant owner to pave the whole of the right of way. His right is only to pave so much as is reasonably necessary for his enjoyment.” Similarly, Bryson J said in Owners Corp of Strata Plan 42472 v Menala Pty Ltd (1998) 9 BPR 16,337 at 16,340: “The [dominant owner’s] right of way does not entitle the [dominant owner] to have the whole of the 6 m strip cleared of any obstruction as if it were a billiard table. The [servient owner] continues to be the owner of [its] land, and may use it in any way and maintain on it any structure if it does not create a real substantial interference with the enjoyment of the right of way. If enough space is left free for passage without any real substantial interference with the right to pass and re-pass, the [dominant owner] cannot insist on more.” From these cases one might conclude that paving so much of the right of way as is reasonably necessary is acceptable, while paving the entire width of the right of way and levelling the land to a billiard table may not. Can the burdened land still be used but it’s owner? Yes, within reason. The owner of the burdened land retains, in respect of the burdened land, all those rights of ownership that are not inconsistent with the exercise by the dominant owner of the rights expressly given or implicitly confirmed by the grant: Zenere v Leate (1980) 1 BPR 9300 (McLelland J); Prospect County Council v Cross (1990) 21 NSWLR 601; Moncrieff v Jamieson [2007] UKHL 42; [2007] 1 WLR 2620 per Lord Scott at [54]. This does not mean, however that where the two competing land uses are incompatible, the owner of the benefited land must sacrifice use of the right of carriageway. “… a servient owner’s rights are diminished to the extent that they are inconsistent with reasonable exercise by the dominant owner of its rights.”: Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [23]. As Lord Scott said in Moncrieff v Jamieson [2007] UKHL 42; [2007] 1 WLR 2620 at [54], in terms quoted approvingly by the NSW Court of Appeal in Theunissen v Barter [2025] NSWCA 50 at [132]: “Every servitude or easement will bar some ordinary use of the servient land. For example, a right of way prevents all manner of ordinary uses of the land over which the road passes. The servient owner cannot plough up the road. He cannot grow cabbages on it or use it for basketball practice.” Each owner has rights that must be accommodated by the other. This principle was explained by Barrett JA in Hare v van Brugge (2013) 84 NSWLR 41; [2013] NSWCA 74 at [25]: “It may readily be accepted that a concept of reasonable use applies. But it applies to both parties. Each of them — the servient owner and the dominant owner — must exercise a degree of restraint in relation to an easement site. Neither may exercise his or her rights (the rights arising from the easement, in the case of the dominant owner, and the rights incidental to ownership of the burdened fee simple, in the case of the servient owner) in a way that interferes unreasonably with the enjoyment of the other’s rights. …” What if there are a number of means of enjoying the easement? Where an easement permits the exercise of the rights granted in numerous ways, generally the owner of the benefited land is entitled to choose the manner of its exercise, and even to change that use from time to time. Consider a circumstance where there are multiple points from which access might be had from a right of way into the benefited land. In those circumstances, the owner of the benefited land is entitled to select a reasonable number of points for that access, and even to change those points of access from time to time: Trewin v Felton [2007] NSWSC 851 per Brereton J at [19]; Butler v Muddle (1995) 6 BPR 13,984; [1996] ANZ ConvR 147; (1995) NSW ConvR 55-745 (Young J); Chiu v Healey [2003] NSWSC 857; Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [24]. Can the owner of the burdened land withhold consent? When building a road over the burdened land, particularly in rural areas, development consent may be required. If the proposed works are being carried out on the burdened land, the consent of the owner of the burdened land to the application for development consent will be required. Without owner’s consent, the development consent cannot be granted: Al Maha Pty Ltd v Huajun Investments Pty Ltd [2018] NSWCA 245; 365 ALR 86 . In Kirkjian v Towers (6/7/87 u/r) Waddell CJ in Eq held that the owner of the burdened land could be ordered to consent to the lodgement of a development application for construction of improvements which are reasonably necessary for the proper enjoyment of the easement. That decision has been followed: 117 York Street Pty Ltd v Proprietors of Strata Plan No 16123 (1998) 43 NSWLR 504, 521-2 ; Owners Strata Plan No 50411 v Cameron North Sydney Investments Pty Limited [2003] NSWCA 5 para [23] per Giles JA and Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324. The owner of the burdened land may withhold its consent to the application for development consent where the proposed works are unlawful or an excessive user of the easement. For commentary on what may constitute excessive user refer below to the case summary of Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324. Case law on construction within an easement site The following case summaries help in understanding the principles above. Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 In Burke v Frasers Lorne Mrs Burke and other neighbours enjoyed a right of carriageway over property owned by Frasers Lorne. Frasers Lorne replaced the asphalt on a driveway within the carriageway located on its property with turf. The plaintiffs, including Mrs Burke brought proceedings against Frasers Lorne to reinstate the asphalt driveway. A question arose regarding the right of the owner of the burdened land (Frasers Lorne) to replace the surface material of the driveway on its land. At [27] Brereton J held that, even though the turf driveway still afforded reasonable access to the benefited properties, Frasers Lorne has substituted the asphalt driveway for something which was inferior. Frasers Lorne submitted that the real question was whether the alternative substituted by Frasers Lorne would still afford reasonable access in accordance with the terms of the easement. If it did, then Frasers Lorne had a right to install the alternative, Brereton J held at [28]: “Attractive as this submission so stated is, I am, nonetheless, convinced it is wrong for the following reasons. First, it would be inconsistent with the right of the dominant owner to construct a carriageway on the site of the easement, if, the dominant owner having constructed a carriageway which was not excessive, the servient owner could unilaterally disrupt that carriageway and substitute an inferior one, even though it would still afford reasonable access. The right to construct a carriageway must include, for example, the right to select the contractor who will build it, the right to select the particular form of paving which will be used, and so on. It would make nonsense of this right if the servient owner could then decide that he or she did not like the particular form of paving and substitute an inferior one.” And at [33]: “In my judgment, therefore, and absent any special provision in the grant, a servient owner is not entitled unilaterally to change the surface of the carriageway to an inferior one, or otherwise to disrupt or degrade the surface of the carriageway. To do so would be inconsistent with the rights of the dominant owner to construct a carriageway to the extent reasonably necessary for the proper enjoyment of the grant (so long as the construction is a non-excessive user), and to enjoy access over the carriageway so constructed.” Accordingly, Brereton J concluded that Frasers Lorne had no right to change the surface of the driveway constructed within the carriageway on its land. To do so was inconsistent with the plaintiffs' right to have the constructed driveway over the right of carriageway remain in its current form. Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324 In Sertari Pty Ltd v Nirimba , the owner of the burdened land subject to a registered right of carriageway (Sertari), refused to consent to a development application by the owner of the benefited land (Nirimba). Sertari’s consent had become necessary because Nirimba proposed to carry out development on the benefited land to build 236 apartments and underground parking for 351 vehicles. Access to the benefited land was via a driveway and carpark on the burdened land. The proposed development would greatly increase the traffic on the right of carriageway. The terms of the easement placed the whole burden of the maintenance and repair of the driveway on the owner of the burdened land. The trial Judge ordered Sertari to give its consent to the development application. Sertari appealed against that order to the NSW Court of Appeal. The NSW Court of Appeal (Handley AJA with whom Tobias JA and McColl JA agreed) held that the owner of the burdened land can be compelled to consent to a development application by the owner of the benefited land in respect of the burdened land where refusal to provide consent would obstruct the dominant owner in the exercise of its rights under the easement. The servient owner had no lawful reason for refusing its consent. Handley AJA held at [10]: “The servient owner's refusal of consent, where this is legally necessary, obstructs the dominant owner in the exercise of rights under the easement. Obstruction by legal means in this way is just as much an infringement of the dominant owner's rights as a direct physical obstruction.” in Kirkjian v Towers Waddell CJ in Eq held that the owner of the burdened land was bound to grant consent unless there was a "lawful reason" for refusing to do so. There was no such reason in that case because the proposed user of the right of way was not excessive. The right of carriageway was in the following terms: (a) Full and free right for every person who is at any time entitled to an estate or interest in possession in the land herein indicated as the dominant tenement or any part thereof with which the right shall be capable of enjoyment and every person authorised by him and lessees, employees, customers, patrons, invitees and licensees of any business conducted from the improvements erected or to be erected on the dominant tenement to go, pass along and re-pass at all times and for all purposes with or without animals and with or without vehicles or both to or from the said dominant tenement or any part thereof. (b) The site of the servient tenement shall be maintained and repaired by the registered proprietor thereof, which obligation shall bind his successors in title and assigns." At first instance, Windeyer J held that the words of the grant were clear and since it was a right for all purposes and at all times all persons connected with the proposed residential development were entitled to use the right of carriageway. In these circumstances the question of excessive user, which was essentially one of construction, could not arise. Windeyer J also held (at pghs [5], [37] - [41]) that the physical characteristics of the properties and the activities being conducted on the benefited land at the time of the grant of the easement could not cut down its plain words. Handley AJA at [16] followed the High Court’s decision in Westfield Management Ltd v Perpetual Trustee Company Ltd [2007] HCA 45 which required that the Court could only have reference to the material in the folio identifiers, the registered instrument, the deposited plans, and the physical characteristics of the properties but that these provided no basis for reading down the clear and unqualified words of the easement. The easement was for all purposes, for use at all times, and extended to every person with an estate or interest in any part of the benefited land with which the right was capable of enjoyment, and persons authorised by them. This meant that the benefit of the easement extended to each and every future owner of the proposed 236 apartment units. The owner of the burdened land submitted that the car park, including the pavement of the burdened land, had not been constructed to carry heavy traffic of this nature and the positive obligation to maintain the easement was likely to prove underly onerous. The traffic once the units were fully occupied would impose a heavy and permanent financial burden on the owner of the burdened land. His Honour Handley AJA held at [18]: “In my judgment this evidence cannot affect the construction of the clear words of the grant. The dominant tenement is very large, the servient tenement is very small, the use is for all purposes, and the whole burden of maintenance and repair is clearly imposed on the servient owner.” And at [20]: “I have already held that the proposed user would not be excessive. The apparently unfair financial burden that the increased use would place on the servient owner would be lawful and in these circumstances the appellant was bound to give its formal consent to the second development application.” The Court of Appeal held that, because the local council was nominated as the party with the power to release, vary or modify the terms of the easement, there was nothing to suggest that the local council could not impose conditions in the development consent that would fairly adjust the financial burdens created by the increased use of the burdened land. Further, it could be appropriate, at some stage, for the local council to modify the registered easement by incorporating the relevant conditions of consent so that those terms appear on the title. FitzGerald v Foxes Lane (NSW) Pty Ltd [2025] NSWCA 212 In FitzGerald v Foxes Lane, the NSW Court of Appeal held that the owner of farmland near Moree in northern New South Wales ( Mr Fitzgerald ) which had the benefit of a registered right of carriageway ( ROC ) over neighbouring farmland, was entitled to undertake work (light grading) on a five metre wide vehicular track along the ROC. The owner of the burdened land ( Foxes Lane ) was restrained from causing crops to be planted or for “tramlines” to be created or maintained within the ROC on the burdened land. The burdened land was previously used for grazing and a track mostly consisting of dirt compacted paths (for vehicle wheels) existed within the ROC. However, from around 2011, Foxes Lane began using the land for cropping. They planted crops across the ROC and employed a system of cultivation involving “tramline” ruts which affected the existing track’s surface. This made it difficult for Mr Fitzgerald to drive over the track and use the ROC. Mr Fitzgerald filed a summons in the NSW Supreme Court seeking injunctive relief concerning Foxes Lane’s farming activities within the ROC and declaratory relief relating to his plan to construct an unsealed crowned road over the existing track. The primary judge substantially rejected Mr Fitzgerald’s claims, holding that Foxes Lane was entitled to use the ROC in any way, including by cropping, provided that there was no substantial interference with Mr Fitgerald’s rights under the ROC. Further, it held that Mr Fitzgerald’s proposed road works were not reasonably necessary in circumstances where he had always been able to pass and repass along the ROC in his farm ute. Some of the issues to be determined on appeal were whether: Foxes Lane’s use of the ROC by cropping constituted a substantial interference with Mr Fitzgerald’s rights; and if so, what relief should issue and, relatedly, whether Mr Fitzgerald was entitled to undertake his proposed roadworks. Substantial interference With respect to interference by the planting of crops within the ROC and the tramlines, Kirk JA (with whom Adamson JA agreed) held at [99] that these amounted to a substantial interference with the use of the ROC. Specifically, the crops obscured the path of the ROC such that it was difficult to see and use and this was found to be a significant interference with the ability of Mr Fitzgerald and his guests to use the ROC. “As noted, whether or not there has been a substantial interference with the rights of the dominant owner involves a practical, evaluative judgment about neighbours being able to exercise their respective property rights, taking account of the nature, extent and significance of any interference. There was evidence that the ROC, like other tracks and roads in the area, could become boggy and potentially impassible in wet conditions…That the ROC had such inherent limitations is not an answer to the appellant’s complaints that the respondents’ actions in cropping over the ROC impeded its use by making it more difficult and risky for ordinary nonfarm vehicles, and petrol vehicles (whether used for farming or not), to drive over the ROC… In my view these effects of the respondents’ cropping activities represent a significant interference with the ability of the appellant and his invitees to use the ROC.” And at [115]: “The ROC did not require that the respondents only ever engage in grazing on Lot 10, as though the land use was frozen as at the time the right was created. But in changing use they could not ignore the right held by the dominant owner. As outlined above, the obscuring effect of the respondents’ cropping activities is a significant interference with the ability of the appellant and his invitees to make use of the ROC. The same is true of the increased difficulty and reduced speed of travelling on it, and the impediment placed on using non-farm vehicles or any vehicles using petrol engines. The potential for causing mechanical and physical problems with vehicles is also a factor of some (if lesser) weight. The combination of all such matters involves a substantial interference by the respondents in the rights held by the appellant.” Right to construct within the ROC At [73] Kirk JA restated the long-understood position that the ancillary right to construct a road within a right of carriageway turns on whether doing so was reasonably necessary for the dominant owner’s enjoyment of its express rights under the easement. Kirk JA, held at [69]-[70] that while the context of the ROC might be important, Mr Fitzgerald’s rights to use the ROC ought not to be limited to the use of the track in its current state or limited to the use by an “ordinary farm vehicle”. “There was some suggestion by the respondents that the ROC should be construed to extend to passage only by an “ordinary farm vehicle”, perhaps meaning 4WD vehicles. That issue overlaps with the practical question of the interaction of the parties’ rights in the current circumstances. Insofar as the point is put as a matter of construction it should be rejected. As the High Court said in Westfield Management Ltd v Perpetual Trustee Company Ltd (2007) 233 CLR 528; [2007] HCA 45 at [30] , “the term ‘for all purposes’ encompasses all ends sought to be achieved by those using the easement in accordance with its terms” (see also the authorities referred to at [64]). The respondents argued that “the purpose of the grant, assessed from the perspective of a reasonable person in the position of the parties to the grant, would have contemplated passage by ordinary farm vehicles, not a sports car”. However, as the appellant said in reply, the terms of the ROC are not limited to usage by farmers, and even farmers may use vehicles other than “usual farm vehicles”. Accordingly, the submission that the use of the ROC ought to be limited to farm vehicles was rejected. A similar argument was rejected by Habersberger J in Mantec Thoroughbreds Pty Ltd v Batur (2009) 25 VR 507; [2009] VSC 351: [74] One other circumstance that I consider should be taken into account is that the easement in question benefited a rural property. Thus, it must have been contemplated that the easement would be used in the ordinary course of farming activities, should it be needed. This would likely involve the movement of cattle or other stock, the driving of tractors, motorbikes and other machinery and access by car or utility vehicle. I see no reason why this should not also include the occasional large truck or semi-trailer. Trucks are clearly used in farming activities, and occasionally bringing a larger vehicle onto the land is not an unlikely occurrence. In addition, it must have been contemplated at the time that a house might be built on the newly subdivided lot 4. There seems to be no reason, therefore, why the easement of way does not extend to all forms of vehicular traffic and I so find.” With respect to the construction of a road within the ROC, Kirk JA held at [136] that Mr Fitzgerald had not established a sufficiently detailed and clear plan of the road he wished to build and had thus not established the reasonable necessity of building a road over the ROC. However, Kirk JA at [137] held that Mr Fitzgerald was entitled to undertake remediation of the existing track to make it trafficable: “However, the appellant is entitled to undertake remediation to the ROC to even out the tramlines that currently run across it. It is therefore appropriate to declare that the plaintiff may undertake work on a five metre wide vehicular track along the ROC in the nature of light grading or drag bucketing in order to even out the tramlines running across the track. Light grading would encompass the sort of work the appellant has previously undertaken by dragging an implement behind his ute.” Key Takeaways The owner of the benefited land is entitled to construct improvements on the burdened land where this is necessary or convenient for the exercise of the rights conferred by the easement: Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324 per Handley AJA at [9]. The owner of the benefited land can pave so much of the right of way as is reasonably necessary for its use and enjoyment but not the entirety of the right of way or insist that if be as flat as a billiard table: Butter v Muddle (1995) 6 BPR 13,984; Owners Corp of Stata Plan 42472 v Merala Pty Ltd (1998) 9 BPR 16,377. The right to construct a carriageway must include, for example, the right to select the contractor who will build it, the right to select the particular form of paving which will be used, and so on: Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [28]. An owner of burdened land is not entitled to change the surface of the carriageway to an inferior one, or otherwise to disrupt or degrade the surface of the carriageway. To do so would be inconsistent with the rights of the dominant owner to construct a carriageway to the extent reasonably necessary for the proper enjoyment of the grant (so long as the construction is a non-excessive user), and to enjoy access over the carriageway so constructed: Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [33]. Where an easement permits the exercise of the rights granted in a number of different ways, generally the owner of the benefited land is entitled to choose the manner of its exercise, and even to change that use from time to time: Trewin v Felton [2007] NSWSC 851 per Brereton J at [19]; Butler v Muddle (1995) 6 BPR 13,984; [1996] ANZ ConvR 147; (1995) NSW ConvR 55-745 (Young J); Chiu v Healey [2003] NSWSC 857; Burke v Frasers Lorne Pty Ltd [2008] NSWSC 988 per Brereton J at [24]. The owner of burdened land can be required to consent to a development application by the dominant owner in respect of the burdened land where refusal to provide consent would obstruct the dominant owner in the exercise of its rights under the easement: Kirkjian v Towers (NSWSC, Waddell CJ in Eq, 6 July 1987, unreported); Sertari Pty Ltd v Nirimba Developments Pty Ltd [2007] NSWCA 324. The planting of crops and tramlines across a right of carriageway may constitute a real and substantial interference with the use of the right of carriageway and access across a farm track ought not be limited to 4wd farm vehicles only: Fitzgerald v Foxes Lane (NSW) Pty Ltd [2023] NSWCA 212. Require further assistance? We are often asked to provide advice on complex questions involving easements and ancillary rights. Often resolution of the issues can be a simple matter of engaging in constructive consultation with the parties involved or the local council, or alternatively, bringing the matter before the Court for determination. Disclaimer The contents of this article are a general guide and intended for educational purposes only. Determination of issues of the kind discussed in this article is often complex and varies greatly from case to case. Each individual case is different and requires a detailed understanding of matters of fact and degree upon which reasonable minds may differ. DO NOT RELY ON THIS ARTICLE AS A SUBSTITUTE FOR COMPETENT LEGAL ADVICE.
Existing Use Rights – Part One (Explained)
By Mark Evans December 4, 2025
Our latest video discusses existing use rights, their expansion, enlargement, intensification of use and change of existing use rights.
Existing Use Rights Explained
By Mark Evans November 30, 2025
Planning law changes can create uncertainty for property owners and developers.
By Mark Evans November 20, 2025
In our latest video, we explore how restrictive covenants can be set aside to allow development to proceed under New South Wales planning laws. Learn how consent authorities and the Land and Environment Court approach these provisions and what it means for your project. 🎥 Watch now to understand your options when a covenant stands in the way of your development. 📞02 9145 0900 🌐 whiteacre.com.au
Understanding road closures by local councils in NSW and the appeal process
By Mark Evans November 13, 2025
Understanding road closures by local councils in NSW and the appeal process
By Mark Evans November 7, 2025
This video explores legal rights and responsibilities regarding stormwater discharge, surface runoff and the law of private nuisance. We explore how the law of nuisance applies to water flowing between neighbouring properties — and what landowners and developers need to know. Link to the Article Watch the full video here:
Physical Commencement of Development Consents
By Mark Evans October 31, 2025
Physical Commencement of Development Consents
Existing use Rights
By Mark Evans October 2, 2025
Existing use Rights
By Mark Evans October 2, 2025
This article explores existing use rights, specifically expanding and intensifying existing uses, and changes of existing uses. Part One examined the nature of existing use rights and how they are characterised. That article can be accessed here
By Mark Evans May 4, 2025
This article provides a general overview of the NSW Biodiversity Offsets Scheme, followed by a discussion of the tax implications of establishing a biodiversity stewardship site for Councils. What is the NSW Biodiversity Offsets Scheme? The NSW Biodiversity Offsets Scheme (the Scheme ) is a market-based scheme that is administered by the NSW Department of Climate Change, Energy, the Environment and Water ( Department ) and aims to help address the loss of biodiversity and threatened species in NSW. It seeks to do so by creating incentives for landowners to improve or maintain biodiversity values as a means of offsetting impacts on other areas. The Scheme is established by the Biodiversity Conservation Act 2016 ( BC Act ) . How the Scheme works Councils can establish a ‘biodiversity stewardship site’ ( Stewardship Site ) on eligible land within NSW by means of entering into a Biodiversity Stewardship Agreement ( Stewardship Agreement ) with the Department: s 6.17 BC Act. In doing so, Councils commit themselves to enhancing and protecting biodiversity values on the Stewardship Site. On execution of a Stewardship Agreement, the Council is entitled to receive an amount of biodiversity credits which are created by the Department. The amount of biodiversity credits are calculated by the Council’s accredited ecologist (and verified by the Department) in accordance with the methodology prescribed in the Biodiversity Assessment Method ( BAM ): s 6.7 BC Act. Biodiversity credits are created in respect of existing biodiversity values on the land and management actions to be carried out in accordance with the Stewardship Agreement. A biodiversity credit remains in force unless it is cancelled or retired: s 6.18 BC Act. The market value of the biodiversity credits is calculated by the Department at the time of creation. Sale and transfer of biodiversity credits Biodiversity credits may be sold by the Council to a buyer (or in parcels to a number of buyers) seeking to offset the impact of actions detrimental to biodiversity or to permanently secure conservation outcomes. The sale price of the biodiversity credits is determined by agreement between the Council and the buyer. Alternatively, biodiversity credits may be used by Council to offset negative biodiversity impacts arising from an activity carried out under Part 5 of the Environmental Planning and Assessment Act 1979 : s 7.15 BC Act. The Council may transfer biodiversity credits to a buyer or third party: s 6.19 BC Act. The transfer is made through an application to the Department by the parties to the transfer. The transfer is not effective until the transfer is authorised by the Department and registered in the register of biodiversity credits: s 6.20 BC Act. On the registration of the first transfer of the biodiversity credits, the Total Fund Deposit ( TFD ) specified in the Stewardship Agreement (or a proportion, if not all the credits are transferred) is required to be paid by the buyer of the biodiversity credits into the Biodiversity Stewardship Payments Fund (the Fund ): s 6.21 BC Act. The TFD is a fixed amount of money used to cover the long-term management costs of a Stewardship Site. It is a calculated value representing the present value of future payments needed to fund the agreed management actions. Contracts for the sale of biodiversity credits between the Council and purchasers will state that the credit owner is entitled to the full amount of the agreed sale price of the biodiversity credits, including the TFD, and that the credit owner will have the obligation to pay the TFD. Once the credits have been ‘used’ to offset negative biodiversity impacts and to permanently secure the conservation of biodiversity, they are ‘retired’ such that they can no longer be used for any other purpose: s 6.27 BC Act. Annual payments are made out of the Fund to the Council in respect of management actions carried out in accordance with the Stewardship Agreement: s 6.34 BC Act. Management actions typically include obligations to fence areas of land, control exotic pest species, carry out bushfire management and weed management. In summary, annual payments made out of the Fund can help Councils meet the expenses they currently incur managing large tracts of land while achieving significant biodiversity conservation outcomes. Disclaimer This is a general overview of the Scheme and tax implications. The information in this article is general in nature and is intended as a guide only. It is not designed to be, nor should it be regarded, as legal or accounting advice. The business and financial structure for each landholder or entity managing a biodiversity stewardship site or conservation area is likely to be unique. Therefore, the way taxation law applies will depend on individual circumstances and you should consult a professional tax adviser before engaging with the Scheme or entering into a Stewardship Agreement. Capital Gains The ATO deems that a capital gains event (type D4) occurs on entry into a Stewardship Agreement: s 104-47(1) ITAA. The landowner makes a capital gain if the “capital proceeds” are more than that part of the “cost base” of the land that is apportioned to the covenant. Most state and federal government departments, including local councils are tax exempt: s 50.25 ITAA. GST on entry into Stewardship Agreement When the Department and the Council enter into a Stewardship Agreement, the Council makes a taxable supply by entering into the agreement in return for the biodiversity credits issued by the Department and the Department makes a taxable supply of biodiversity credits in return for the Council entering into the agreement. These are non-monetary transactions. The Department and the Council (if both are registered for GST): are required to pay GST in respect of their supply, calculated on the estimated value of the credits; and can claim an input tax credit (ITC) in respect of the tax invoice received from the other party. If a Council is registered for GST, the Department will issue a Department GST invoice and Recipient Created Tax Invoice (RCTI) on behalf of the Council when the Department sends the registered BSA to the Council. The Department will use the estimated market value of the biodiversity credits for the purposes of these invoices. As the GST payable and the input tax credit that can be claimed are the same amount, the net GST position for both the Council and Department is zero. This means that these invoices do not need to be paid. However, both the Department and the Council are required to account for the GST payment and the input tax credit in their business activity statements (BAS). Capital gains from sale or transfer of credits A CGT event (type A1) occurs upon the sale of biodiversity credits. The Council may make a capital gain or loss depending on the capital proceeds and cost base of the credits: s 104-10(4) of the ITAA. A biodiversity credit constitutes a CGT asset: s 108-5 of the ITAA. CGT event (type A1) happens when the Council disposes of biodiversity credits: s 104-10 of the ITAA. Most state and federal government departments, including local councils are tax exempt: s 50.25 ITAA. GST on sale of biodiversity credits For the purposes of GST, the sale of credits is a taxable supply of goods. This means that the biodiversity credit price should include GST that the Council then needs to pay to the ATO. Receipt of annual payments from the Biobanking Trust Fund Annual payments from the Fund made by the Department to the Council are a contractual payment for the performance of services and should be ordinary income and assessable for income tax purposes. Most state and federal government departments, including local councils are tax exempt: s 50.25 ITAA . GST on annual payments The supply of stewardship services by the Council to the Department in return for payment of the annual payment should be a taxable supply. The Department will issue a recipient created tax invoice (RCTI) and include an amount for GST when making the annual stewardship payments for management actions the Council delivers. Conclusion Councils can establish biodiversity stewardship sites on eligible land within NSW by means of entering into a Biodiversity Stewardship Agreements with the Secretary of the Department. On execution of a Stewardship Agreement, the Council is entitled to receive an amount of biodiversity credits. Biodiversity credits may be sold by the Council to a buyer seeking to offset the impact of actions detrimental to biodiversity or to permanently secure conservation outcomes. Biodiversity credits may be used by Council to offset negative biodiversity impacts arising from an activity carried out by Council. Some of the proceeds of the sale of biodiversity credits must be paid into the Fund to cover ongoing management actions and costs. Annual payments are made out of the Fund to the Council in respect of management actions carried out in accordance with the Stewardship Agreement. Management actions typically include obligations to fence areas of land, control exotic pest species, carry out bushfire management and weed management. In summary, annual payments made out of the Fund could help Councils meet the expenses they currently incur managing large tracts of land while achieving significant biodiversity preservation outcomes. Disclaimer This is a general overview of the Scheme and tax implications. The information in this article is general in nature and is intended as a guide only. It is not designed to be, nor should it be regarded, as legal or accounting advice. The business and financial structure for each landholder or entity managing a biodiversity stewardship site or conservation area is likely to be unique. Therefore, the way taxation law applies will depend on individual circumstances and you should consult a professional tax adviser before engaging with the Scheme or entering into a Stewardship Agreement.