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Fail to Comply With Planning Scheme, Permit or Agreement Under s173

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Andrew George

Author: Andrew George

Practice area: Public Order

Andrew is a founding Director of Doogue + George, ranked by Doyle's Guide as a Leading Criminal Defence Lawyer in Victoria (2026) and an LIV Accredited Criminal Law Specialist since 1995 with over 30 years of experience across all Victorian courts, tribunals and Royal Commissions. His depth of experience in this area means clients receive accurate, considered advice.

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Andrew authored this content and last revised it for accuracy on 5th August 2026.

What is the offence of Fail to Comply With Planning Scheme, Permit or Agreement Under s173?

This offence applies where land is used or developed in a way that does not comply with a planning scheme, a planning permit, or an agreement made under section 173 of the Planning and Environment Act 1987 (Vic). It is created by section 126(1) of the Act and carries a significant financial penalty.

Key points

  • Elements: Land was used or developed, and that use or development did not comply with a planning scheme, permit, or s173 agreement.
  • Type of conduct: Non-compliant use or development of land subject to planning controls.
  • Court: Magistrates’ Court of Victoria (summary offence).

The maximum penalty for Fail to Comply With Planning Scheme, Permit or Agreement Under s173 is a fine of up to 1200 penalty units ($250,920.00 — as at 2026–27).

Common defences may include issues concerning intention and whether the conduct amounted to a breach of the relevant planning controls.

Have you been accused of Fail to Comply With Planning Scheme, Permit or Agreement Under s173?

Interview

Have you been contacted by the Authorities to be interviewed about an allegation of Fail to Comply With Planning Scheme, Permit or Agreement? It is important to seek legal advice before speaking with the Authorities to make sure you understand your rights. You don’t want to answer questions which may compromise any defence available to you.

An interview is part of the investigation. The investigator can use what you say as evidence to support a case against you in Court. Often the investigator has already decided that they will charge you, regardless of whether you answer any questions or not. They will not reveal the material they have gathered and you may inadvertently assist their investigation.

Pleading Not Guilty

If you want to fight a charge of Fail to Comply With Planning Scheme, Permit or Agreement, we will work hard to carefully examine the investigation and look for any issues. Something might have been missed, or there might be issues with the evidence the Authorities do have.

Our lawyers take a pro-active approach when representing our clients and will conduct our own through investigation.

Pleading Guilty

If you decide to plead guilty to Fail to Comply With Planning Scheme, Permit or Agreement, our experienced lawyers will work with you to best prepare for a plea hearing. Our lawyers might be able to argue that the summary of offending should change because it may not accurately describe what actually happened.

Our lawyers can also advise how best to prepare for the plea hearing, including organising character references and supporting materials. This preparation can make all the difference when you ultimately attend Court and appear before a Magistrate. Ultimately, in a case like this, they want to see there has been compliance.

Sentencing

Sentencing in the Magistrates’ Courts of Victoria

Magistrates court sentencing pie chart

Source: Sentencing Advisory Council of Victoria (SACStat), Planning and Environment Act 1987 (Vic) s 126(1) — 246 charges across 131 cases, Magistrates’ Court, 1 July 2020 – 30 June 2023.

Sentencing outcome%
Fine87.0%
Adjourned Undertaking9.8%
Discharge/Dismissal3.3%

When determining penalty, the court will consider the extent of the breach, any benefit obtained, prior compliance history and steps taken to rectify the issue. Thoughtful preparation and early legal advice can significantly affect how the matter is ultimately resolved.

Which court will the case be heard in?

As a summary offence, any summons for this charge will primarily be handled by the Magistrates’ Court.

What is the legal definition of Fail to Comply With Planning Scheme, Permit or Agreement Under s173?

  1. Any person who uses or develops land in contravention of or fails to comply with a planning scheme, or a permit, or an agreement under section 173 is guilty of an offence.
  2. The owner of any land is guilty of an offence if—
    1. the land is used or developed in contravention of a planning scheme, a permit or an agreement under section 173; or
    2. there is any failure to comply with any planning scheme, permit or agreement under section 173 applying to the land.
  3. The occupier of any land, is guilty of an offence if—
    1. the land is used or developed in contravention of a planning scheme, a permit or an agreement under section 173; or
    2. there is any failure to comply with any planning scheme, permit or agreement under section 173 applying to the land.
  4. This section does not apply to the owner of Crown land.

Examples of Fail to Comply With Planning Scheme, Permit or Agreement Under s173

  • An obligation under a s173 agreement that allows for ongoing community access to a building, which is not being adhered to. The agreement states that a part of the building must be accessible to the public from 9-5 Monday to Saturday. However it is discovered that it is not being opened on Saturday as it is too costly.
  • It has been agreed that development of land will occur in stages however the local council discovers that the developers are moving faster than in the original agreement.
  • Adjoining land owners have not been consulted during the planning of a development.

Elements of the offence

The elements of this offence are:

  • The accused has used or developed land; and
  • The manner that the accused has used or developed land does not comply with the conditions of the relevant planning scheme, permit or agreement under section 173 of the Act.

Defences

Defences that are available might relate to your intent and the factual matrix of the alleged offending. It may be that what a lawyer would do is not exactly to defend the charge but to explain it in a way that the Magistrate will understand why it happened and eventually deal with it leniently.

The decision on whether to plead guilty or not guilty to this charge can best be made only after a careful study of the strengths of your case. We need to make a careful and objective evaluation of the evidence that the Prosecution can prove against you.

Often the main emphasis on enforcing agreements under section 173 are to obtain compliance rather than prosecuting offenders. Keeping vigilant records and having transparent auditing process can be beneficial if there is non-compliance discovered.

Questions in cases like this

  • Who is the responsible authority (other party) I need to contact in relation to the agreement?
  • I have just moved into a place and don’t remember agreeing to a s173 agreement. How can I be accused of not complying with an agreement I’m not sure if I signed?
  • What will be the first step the responsible authority will take if a breach is discovered? What powers do they have?

Maximum penalty and court that deals with this charge

The offence of Fail to Comply With Planning Scheme, Permit or Agreement Under s173 (s126(1) of the Planning and Environment Act 1987) carries a fine of 1200 penalty units ($250,920.00 — as at 2026–27) as the highest possible sentence. Please note that this penalty is applied generally to the act where a section is silent on penalty. It should be noted that more significant breaches of this section would see a penalty in the higher end of the sentencing range.

Other important resources

FAQs for Fail to Comply With Planning Scheme, Permit or Agreement Under s173

It refers to using or developing land in a way that is not permitted under the applicable planning scheme. This can include carrying out development that is prohibited, failing to obtain required approvals, or ignoring restrictions that control how land may be used.
If land is used or developed contrary to the conditions of a planning permit, that non-compliance can amount to a criminal offence. Planning permits impose legally binding conditions, and breaching those conditions can expose the responsible person to prosecution.
A section 173 agreement is a formal agreement entered into with a responsible authority that places obligations or restrictions on land use or development. Failing to comply with those obligations, once the agreement is registered and in force, can constitute an offence.
Responsibility for compliance is not limited to a single category of person. Depending on the circumstances, liability can attach to the person using or developing the land, as well as to owners or occupiers who are responsible for ensuring planning requirements are met.
Issues of intention can be relevant in determining responsibility and culpability. Whether the non-compliance was deliberate, inadvertent, or the result of misunderstanding planning controls may be examined when the offence is contested.
The maximum penalty is set at 1200 penalty units, but the actual outcome depends on factors such as the seriousness of the breach, the extent of the non-compliance, and the circumstances surrounding the use or development of the land.