Existing Use Rights in New South Wales: What Four Decisions Tell Landowners
A plain-English review of four decisions on existing use rights
This article considers what can be learned from four Court decisions concerning existing use rights.
Introduction
Planning controls in New South Wales change, and land that may have been used lawfully for decades can find itself in a zone where that use is now prohibited.
The law’s answer is "existing use" rights. Division 4.11 of the Environmental Planning and Assessment Act 1979 (NSW) (EPA Act) allows a use that was lawful immediately before a prohibition took effect to continue despite that prohibition.
Section 4.65 of the EPA Act defines two species of existing use.
Section 4.65(a) covers use for a lawful purpose immediately before the commencement of an instrument that would otherwise prohibit it. Section 4.65(b) covers a use for which consent was granted before the prohibiting provision commenced and which was then carried out in accordance with that consent within a year. Such existing use rights are valuable, because they allow development the current zoning would forbid. They are also fragile.
Existing use rights, what they are and how they arise is examined in more detail in our article here: (https://www.whiteacre.com.au/existing-use-rights-part-one). The following is a review of four Court decisions involving existing use rights and key takeaways from those decisions.
Jojeni Investments Pty Ltd v Mosman Municipal Council [2015] NSWCA 147
Background
In 1933 Mosman Council approved alteration works converting a two-storey house into two flats. For the next eighty years the building was used continuously as two separate residences. The written terms of the 1933 approval could not be found; their content had to be inferred from a council building register entry describing "Alt & Adds into 2 flats", a stamped plan of the "conversion of residence into flats", and Valuer General records describing the property as "RES" in 1930 and "FLATS" by 1935.
The land was later zoned R2 Low Density Residential, in which residential flat buildings — buildings of three or more dwellings — are prohibited. Jojeni wished to demolish the building and construct a single building containing three flats. Whether the council had power to approve that depended on how the existing use was described: an enlargement of an existing use (as two flats) could be approved if it is for that use and no other, whereas a change to a prohibited use (from a house to flats) may not. The primary judge declared that the existing use rights were for "two flats in a house" rather than, as Jojeni sought, a "residential flat building". If followed that consent for three flats could not be granted. Jojeni appealed to the NSW Court of Appeal.
What the Court decided and why
The Court of Appeal (Leeming JA, Macfarlan and Gleeson JJA agreeing) allowed the appeal unanimously and declared that the premises benefited from existing use rights as "a building containing flats". At paragraph [11] Leeming JA drew the fundamental distinction within the definition of existing use rights: between a use that was lawful in its own right and later became prohibited, and a use that was lawful only because consent had been obtained. The first never required consent at all; the second exists only by virtue of it.
That mattered because, at paragraph [50], the Court found that in 1933 the owner could have used the property as two residences without any council approval whatsoever. The legislation then in force required approval to erect or alter a building but said nothing about use; approval was needed in 1933 only because structural alterations were proposed. The entitlement to use the building as two flats therefore came not from the 1933 approval, but from the fact that the property had lawfully been used for residential purposes for years beforehand. The existing use right fell within section 4.65(a) – the use of a building or land for a lawful purpose immediately before planning laws were introduced prohibiting that use.
Because the use did not derive from a consent, it had to be characterized by reference to the overarching purpose served rather than the details of the activities carried on, and as liberally as the statutory language allows. Use for three flats is not different in kind from use for two. In 1933 the regime recognized only dwelling-houses and residential flat buildings — the latter being any building of two or more flats — and drew no distinction based on numbers.
Following this reasoning, the Court held that the building was being used as a building containing flats, akin to a residential flat building and the proponent ought to be allowed to apply to enlarge that existing use.
Key takeaways
- Approval to carry out building work is not approval of a use. Where the legislation of the day regulated only construction, a building approval does not confine how the building may be used.
- Existing use rights are described by reference to purpose, at a practical level of generality — not by counting details such as the number of flats.
- Where original approvals are lost, their terms may be reconstructed from secondary evidence such as registers, stamped plans and valuation records.
Davis v Dodevski [2021] NSWLEC 93
Background
Lot 195 is a rural property of 66.18 hectares in the Nambucca Valley, zoned RU2 Rural Landscape. The minimum lot size for a dwelling house in that zone is 100 hectares. Clause 4.2A of the Nambucca Local Environmental Plan 2010 (LEP) prohibited consent for a dwelling on a lot unless one of the following four alternatives could be met:
the lot meets the minimum size; or the lot was created before the LEP commenced and a dwelling was permissible immediately beforehand; or the lot resulted from a subdivision for which development consent was granted before the LEP commenced and a dwelling was permissible immediately beforehand; or the lot is an "existing holding".
The council refused the owners’ application for a dwelling house on the lot in June 2020 but, on review, granted consent in November 2020. The Council relied on the second alternative (above), asserting in three officer reports — without reasoning — that a dwelling had been permissible on the lot before the 2010 LEP commenced, and on a 1995 report recording a dwelling on the land as an "existing legal dwelling". A neighbour challenged the consent as being invalid.
What the Court decided and why
Pain J of the NSW Land and Environment Court declared the consent invalid and of no effect. The correct application of cl 4.2A of the LEP was a condition precedent to Council’s power to grant consent.
None of the four alternatives in clause 4.2A was available. The lot was well under the minimum size and existed since about 1911, so did not result from a subdivision following development consent. It was not an "existing holding": though held with an adjoining lot in common ownership in 1967, it was not so held when the application was lodged. And a dwelling was not permissible immediately before the 2010 LEP commenced, because the 1995 plan imposed the same 100-hectare requirement and the lot was not an "existing parcel" under it.
Existing use rights featured only by their absence. No council report referred to existing use rights, to a dwelling having previously stood on the land, or to the plan’s replacement-dwelling provision, and there was no evidence that any dwelling had been lawfully erected on the lot. Because no such rights were established, the fact that dwellings were once permissible on 40-hectare lots under earlier instruments was irrelevant, those instruments having been replaced.
Key takeaways
- A council’s historical acknowledgement that a dwelling was "legal" does not create a continuing entitlement to build. Existing use rights must be established by evidence.
- Where an instrument imposes a precondition, satisfying it goes to the council’s power, not planning merit. A consent granted without that power is invalid.
- Officer reports stating a conclusion without reasoning offer no protection. Owners relying on a consent should confirm the approval pathway was available and valid.
Save the Robots ATF Save the Robots Trust v The Council of the City of Sydney [2025] NSWLEC 149
Background
A prominent building at Taylor Square, Darlinghurst, has carried roof signage since the 1920s. Photographs showed signage in 1932, 1934, 1943 and at intervals through to 1984, though the supporting structures had varied over time.
The owner sought consent to rebuild the existing static sign as a digital advertising sign. The site lies within the Oxford Street heritage conservation area, where the applicable State policy prohibits advertisements, so the sign could only proceed if an existing use for the purpose of advertising was established.
A Commissioner granted consent to everything except the digital sign, finding no existing use had been established and, in the alternative, that the sign was unacceptable on road safety, heritage and design grounds. The owner appealed on questions of law only.
What the Court decided and why
Preston CJ dismissed the appeal. At paragraphs [50] to [52] his Honour restated the structure of the definition of existing use rights in section 4.65 of the EPA Act: s 4.65(a) deals with a use that commenced before there was any requirement to obtain consent or other approval, while s 4.65(b) deals with a use that commenced upon the grant of, and in accordance with, a development consent. Common to both is that the use was being carried out for a lawful purpose immediately before the prohibiting instrument commenced. That common requirement distinguishes an existing use from the separate protection given by s 4.68 of the EPA Act to other lawful uses — those that merely become subject to a requirement to obtain consent for the use rather than a prohibition of the use.
Establishing a lawful purpose requires the history of the use to be traced back in time, and has two components: the use itself must have been lawful, and the structure used must have been lawfully erected. The provisions are designed to save rights, not to perpetuate wrongdoing. That required evidence at each date a control commenced — building approvals from 1920, and from 1933 both an approval to erect an advertising structure and a license to display an advertisement. None was in evidence. Photographs of signs in particular years did not identify the structure in use, did not show the use continuing at each critical date, and said nothing about lawfulness.
A further difficulty was a 1999 consent to replace the sign face, limited in duration and conditioned on the sign and its structures being removed on expiry. Taking up that consent changed the use: it became use of the altered structure on the consent’s terms, which brought it to an end in February 2001 — weeks before the prohibition commenced.
Key takeaways
- Long use is not enough. An applicant must show the use was lawful, the structure lawfully erected, and the use continuing at each date a control commenced. Gaps in the record count against it.
- Taking up a time-limited consent can replace and then extinguish earlier rights. Before acting on a consent with expiry or removal conditions, consider what it does to any existing entitlement.
Palm Beach Protection Group Incorporated v Northern Beaches Council [2020] NSWLEC 156
Background
Station Beach lies on the Pittwater side of the isthmus at Palm Beach. The land above the mean high-water mark (MHWM) has been reserved for public recreation since the 1920s as part of Governor Phillip Park, and the Crown land below it, covered by tidal waters, has been used for recreation alongside the reserve ever since. From 1997, a council order under the Companion Animals Act 1998 (NSW) prohibited dogs on all beaches in the former Pittwater area, including Station Beach.
In 2019 Northern Beaches Council made two decisions: in August, to conduct a 12-month dog off-leash trial on part of the beach; and in December, as an interim measure while it sought a Crown license for that trial, to allow dogs on-leash. The Palm Beach Protection Group (Group), a residents’ action group opposed to dogs on the beach, challenged both decisions.
Under the Pittwater Local Environmental Plan 2014 (PLEP) the beach is zoned RE1 Public Recreation and the waters below MHWM are zoned E2 Environmental Conservation. The Group argued that the decisions authorized a new use of land — exercising dogs — that was either prohibited or required a development consent that had never been obtained. The Council’s alternative answer was that the use was simply a continuation of the beach’s long-standing recreational use, which s 4.68 of the EPA Act allowed to continue without consent.
What the Court decided and why
Preston CJ rejected the Group’s planning challenge, holding that no development consent was required, but quashed both decisions on a separate environmental assessment ground. The Court characterized the use enabled by the Council decisions as use for the purpose of a "recreation area" — a place used for outdoor recreation that is normally open to the public. PLEP permits that use in both zones, but only with consent. None had been granted, and an exemption in State Environmental Planning Policy (Infrastructure) 2007 for council development on public reserves did not apply. The outcome therefore turned on s 4.68 of the EPA Act which protects a lawful use that becomes subject to a requirement to obtain consent for that use.
At paragraphs [156] to [158] his Honour held that the use could continue without consent. Section 4.68(1) provides that nothing in an environmental planning instrument requires consent for the continuance of a use of land "for a lawful purpose" for which the land was being used immediately before the instrument came into force. Following Steedman v Baulkham Hills Shire Council (No 2), those words require that the actual use immediately before the instrument took effect was itself lawful. Establishing that involves tracing the history of the use back in time, to show that it was for a lawful purpose when it began and remained so right up to the moment before the instrument that now controls it commenced.
The Court then traced that history. Public recreation at Station Beach began in the 1920s, before planning law required consent for it, and was carried forward lawfully through each planning regime that followed. Immediately before PLEP commenced in 2014, the public was lawfully using the beach for recreation, albeit without dogs. The dog ban did not make that use unlawful, because lawfulness in this context is judged under planning law, not the general law. Allowing dogs changed the detailed activities on the beach, not the purpose of its use. And because PLEP made recreation areas permissible with consent rather than prohibiting them, the protection engaged was that given to an "other lawful use" under s 4.68 of the EPA Act.
At paragraphs [185] to [187] the Court turned to s 4.68(2), which does not authorize any enlargement, expansion or intensification of the use, or any increase in the area of land actually physically and lawfully used. Three points emerge. First, the date against which any growth is measured is not the commencement of the latest planning instrument, but 3 February 1986, when that limitation (then s 109(2)) commenced. Secondly, whether a use has been intensified depends on its nature and purpose: the use here was outdoor recreation by the public, so it was the public’s use that had to have grown. Thirdly, the evidence fell short. It showed more dogs on the beach, but not more people — people with dogs might simply have displaced people without them — whether measured from 1986, from 2014 or from immediately before the decisions.
The Group nevertheless succeeded in its appeal, but for other reasons. As his Honour explained at paragraphs [249] and [250], because the use could continue without consent it fell outside Part 4 and was an "activity" requiring environmental assessment under Part 5 of the EPA Act. The Council had not obtained an environmental impact statement for either activity, despite their likely significant effect on threatened seagrass and seahorse habitat, and both Council decisions (in 2019) were declared invalid and quashed.
Key takeaways
- A use that becomes permissible only with consent, rather than prohibited, can continue without consent under s 4.68 — but only if it has been lawful throughout. That must be proved by tracing its history from when it began through every planning instrument that has applied since.
- A use is described by its purpose, not its details, and intensification is judged by reference to that purpose. New ways of pursuing the same purpose do not change the use, and growth is measured from 3 February 1986 on evidence that compares like with like.
- Avoiding the need for consent does not avoid assessment. A continuing use outside Part 4 may still require environmental assessment under Part 5 where a public authority’s approval is needed for it to be carried out.
Conclusion
Existing use rights arise in one of two ways: from a use that was lawful before the use was prohibited, or from a use authorised by a development consent. Which pathway applies shapes how the right is described, and the description determines what can be built. Where a later instrument requires consent for a use rather than prohibiting it, s 4.68 of the EPA Act gives a parallel protection to other lawful uses, as Palm Beach shows.
Where the right does not depend on a consent, as in Jojeni, the courts describe it generously and by reference to purpose. Palm Beach applies the same approach to other lawful uses: a new way of pursuing the same purpose does not change the use, and intensification is judged against that purpose. All of this presupposes a lawful use to begin with. Save the Robots shows how demanding that threshold can be; Palm Beach shows how it is met, by tracing the use’s history through every instrument that has applied to the land.
Four practical points emerge. The value of an old use lies in the paper trail — approvals, licenses, plans, valuation records, and continuous evidence of use. Rights can be surrendered inadvertently, by acting on a consent whose terms replace them. An assumption repeated in council files is not a legal entitlement. And a use that can continue without consent may still require environmental assessment before a public authority approves it. Anyone relying on a site’s history should establish the position with professional advice.
Disclaimer
The contents of this article are a general guide and intended for educational purposes only. Determination of the types of issues discussed in this article is complex and often varies from case to case and involves an understanding of matters of fact and degree. Opinions on those matters can vary and be matters on which reasonable minds may differ.
DO NOT RELY ON THIS ARTICLE AS A SUBSTITUTE FOR COMPETENT LEGAL ADVICE.
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