If you are planning to enter the motor vehicle trade in Australia, one of the first steps is obtaining a Licensed Motor Car Trader (LMCT) licence. However, many applicants overlook a critical requirement that can delay or derail the entire process: securing the appropriate planning and zoning approvals before submitting their LMCT application.
This guide explains whether a planning permit is required before applying for an LMCT licence, when it may not be necessary, and how to navigate the process correctly from the start, particularly in Victoria, where Consumer Affairs Victoria (CAV) oversees the licensing process.
Before diving in, it is worth reviewing Why Businesses and Professionals Need an LMCT Licence to understand the full scope of what this licence covers and who must hold one.
What Is a Planning Permit?
A planning permit is a legal document issued by your local council that authorises a specific use or development of land. In the context of LMCT licensing requirements, a planning permit confirms that the proposed premises are approved for commercial motor vehicle sales or related trade activity.
It is important to distinguish a planning permit from a building permit:
- A planning permit relates to the use and development of land (e.g., operating a car dealership at that location).
- A building permit relates to the physical construction or structural changes to a building.
You may need one, both, or neither depending on your specific situation. For LMCT purposes, the planning or zoning status of your premises is what matters most.
Is a Planning Permit Required Before an LMCT Licence?
In most cases, yes. Before Consumer Affairs Victoria(CAV) or the relevant state authority approves your LMCT application, they will require evidence that your premises are lawfully permitted for use as a motor car trading business. This typically means one of the following:
- A current planning permit approving the use of the premises for motor vehicle sales or trading.
- Evidence from the local council confirming that the proposed use is “as of right” under the existing zone (i.e., no permit is required because the zoning already allows it).
The licensing authority needs to be satisfied that your business will operate legally and in compliance with local planning laws. Submitting an LMCT application without addressing planning requirements is one of the most common mistakes applicants make.
For a deeper look at what can go wrong during the application stage, read our guide on the Five Mistakes to Avoid When Applying for an LMCT Licence.
When Is a Planning Permit Not Required?
There are specific circumstances where you may not need to obtain a new planning permit before applying for your LMCT licence:
1. The Property Is Already Correctly Zoned
If your premises are located in a commercial or industrial zone that expressly permits motor vehicle sales as an “as of right” use, no planning permit may be required. You should obtain written confirmation from your local council before proceeding.
2. Existing Approved Motor Trade Premises
If the premises were previously used as a licensed motor car trading business and the planning permit or approval is still valid and current, you may be able to operate under that existing approval. Always verify that the previous permit has not lapsed or been revoked.
3. Certain Low-Risk Arrangements
In some limited cases, such as a licensed trader operating from a shared, already-approved facility, additional planning approvals may not be required. This must be confirmed with both the local council and Consumer Affairs Victoria.
What Happens If You Apply Without a Planning Permit?
Applying for an LMCT licence without adequate planning approval can result in a number of serious consequences:
- Delays: Your application will be placed on hold until you provide the required documentation, significantly extending processing times.
- Rejection: CAV may refuse the application outright if the premises are not approved for the intended use.
- Requests for Additional Documents: You may receive a formal request for further information, which can add weeks or months to the process.
- Wasted Costs: Signing a lease and paying associated fees before confirming zoning can result in significant financial loss if the premises are ultimately unsuitable.
Planning permits are increasingly being identified as a critical step in the LMCT application process. Understanding this upfront can save you considerable time, money, and frustration.
Learn more about how planning requirements have evolved in our article: Why Planning Permits are the New Critical Step in Your LMCT Application.
Step-by-Step Process Before Applying for an LMCT Licence
Following the correct sequence of steps will significantly improve the likelihood of a smooth LMCT application. Here is the recommended process:
- Check Zoning: Before committing to any premises, check the zoning of the property through your local council or the relevant planning map. Confirm whether motor vehicle sales or trading is a permitted use in that zone.
- Contact Local Council: Speak with a planning officer at the local council to determine whether a planning permit is required. Request this confirmation in writing.
- Obtain Planning Permit (If Required): If a permit is needed, submit a planning application to your local council. This process can take several weeks to months, so plan accordingly.
- Secure a Lease Agreement: Once zoning is confirmed and any required permits are in place or in progress, enter into a lease agreement for the premises. Including a planning permit condition in the lease is advisable.
- Apply for Your LMCT Licence: With premises confirmed, planning documentation in hand, and all other eligibility requirements met, submit your LMCT licence application to CAV.
Ready to Apply for Your LMCT Licence? Contact LMCT
Navigating the planning and licensing process can be complex, but getting it right from the beginning will save you time, money, and unnecessary delays. Here is what you should do before submitting your LMCT application:
- Check your proposed premises with your local council to confirm zoning and whether a planning permit is required.
- Do not sign a lease until zoning is confirmed — include a planning condition clause if necessary.
- Seek professional licensing advice to ensure your application is complete and compliant from the outset.
Taking these steps before applying for your motor car trader licence in Victoria will put you in the strongest possible position for approval.
FAQs About LMCT Planning Permit
Do I need council approval before applying for an LMCT licence?
In most cases, yes. CAV typically requires evidence that your premises are approved for motor vehicle trading before an LMCT licence is granted. This may come in the form of a planning permit or written confirmation from your council that the use is permitted as of right under the existing zoning.
How long does it take to get a planning permit?
Planning permit timelines vary by council and complexity of the application. Simple applications may be decided in 4 to 8 weeks, while more complex proposals involving advertising or objections can take 3 to 6 months or longer. Factor this into your business planning timeline.
Can I apply for an LMCT licence without a commercial premises?
No. A fixed place of business is a core requirement for an LMCT licence in Victoria. You must have an approved, identified premises from which you intend to operate before your application can be approved.
What documents are required for LMCT approval?
Key documents typically include proof of identity, a lease agreement or proof of ownership of premises, planning permit or council zoning confirmation, business registration details, and relevant character and financial suitability information. Requirements may vary — always check current guidelines.
Who approves LMCT licences in Victoria?
LMCT licences in Victoria are approved by CAV, which operates under the Motor Car Traders Act 1986. CAV assesses each application for suitability, including checking the premises, background of the applicant, and compliance with planning laws.
