The 50-term property and planning glossary. The terminology every buyer should know.
From AEP to Zone, property and planning terminology is dense and unforgiving. The 50 terms every Australian buyer should understand, with plain-language
Property and planning terminology is dense, jurisdictionally varied, and often unforgiving. A misunderstood term in a contract or planning document can cost substantially. This glossary covers the 50 terms every Australian buyer should know with plain-language explanations.
A
AEP (Annual Exceedance Probability)
The probability of a flood event being equalled or exceeded in any given year. "1% AEP" means 1 in 100 chance per year. Used to define regulatory flood levels.
AHD (Australian Height Datum)
The reference elevation system used across Australia. Levels expressed in metres above AHD. Used in flood mapping, surveying, and design.
ASSMP (Acid Sulfate Soils Management Plan)
A plan required when development triggers acid sulfate soil disturbance. Documents the assessment, treatment, and monitoring of acid sulfate material during construction.
AHIMS (Aboriginal Heritage Information Management System)
The NSW register of recorded Aboriginal cultural heritage sites. Searchable database. Triggered consultation when sites are within or near development.
ARI (Annual Recurrence Interval)
Older terminology for flood probability. "100-year ARI" approximately equivalent to 1% AEP. Being phased out in favour of AEP.
B
BAL (Bushfire Attack Level)
Rating system measuring radiant heat exposure for bushfire-prone properties. Categories: BAL-LOW, BAL-12.5, BAL-19, BAL-29, BAL-40, BAL-FZ (Flame Zone). Drives construction requirements.
BDAR (Biodiversity Development Assessment Report)
A detailed ecological assessment required when development triggers the NSW Biodiversity Offsets Scheme. Required for substantial vegetation clearing or impacts on threatened species.
BCA (Building Code of Australia)
The national building standards. Now incorporated into the National Construction Code (NCC). Covers structural, fire safety, accessibility, and energy efficiency.
BVM (Biodiversity Values Map)
The NSW Government's map of land with high biodiversity values. Development on BVM-listed land triggers BDAR requirements.
Body Corporate
The legal entity managing strata or community title property. Members are the property owners. Different terminology in different states (Owners Corporation in VIC, Body Corporate in QLD).
C
Capital Works Fund
A strata fund holding reserves for major repairs, replacements, and upgrades. Distinct from administrative fund (operating costs).
CGT (Capital Gains Tax)
Tax on gains made when selling an asset. 50% discount applies to assets held more than 12 months. Principal place of residence is exempt.
Complying Development
A planning pathway for development that meets defined standards, providing fast-track approval without full DA. Excluded for heritage, bushfire, and some other categories.
Cooling-off Period
A statutory period (typically 3-5 business days) during which a buyer can withdraw from a property purchase contract with limited penalty. Does not apply to NSW/VIC auction purchases.
Covenant
A legal obligation or restriction registered on title that runs with the land. Positive covenant (must do something) or restrictive covenant (must not do something).
D
DA (Development Application)
The formal application to council for approval of development. Required for most building works that exceed exempt or complying development thresholds.
DCP (Development Control Plan)
A council document providing detailed planning controls for specific areas. Sits below the LEP in the planning hierarchy.
Defects Liability Period
The period after construction completion during which the builder must rectify defects. Typically 12-26 weeks for residential.
Demolition Control
A planning provision restricting demolition of buildings. Common in heritage overlays and conservation areas.
Drainage Easement
A registered easement giving council or utility the right to maintain stormwater drainage infrastructure crossing the lot.
E
Easement
A registered right benefiting one party (or the public) over another's land. Common types: drainage, sewer, power, right-of-way, access.
EIA (Environmental Impact Assessment)
A formal assessment of environmental impact required for substantial development. Different from environmental site assessment (ESA), which assesses contamination.
EP (Environment Protection)
A zone or overlay category protecting environmental values. Often applied to bushland, wetlands, and ecologically sensitive areas.
Exempt Development
Development that does not require council approval. Defined by state-wide codes covering minor works (small sheds, fences, repairs).
F
Floor Level (Minimum Habitable)
The minimum elevation at which habitable rooms can be located. In flood prone areas, set above the 1% AEP flood level plus freeboard.
Floor Space Ratio (FSR)
The ratio of total floor area to lot area. Higher FSR permits more substantial building. "FSR 0.5" means a 600sqm lot can have 300sqm of floor area.
Freeboard
The safety margin added above the 1% AEP flood level when setting minimum habitable floor level. Typically 300-500mm.
Frontage
The boundary of a lot adjoining a road. Wider frontage typically valuable for accessibility and visual appeal.
G
GRZ (General Residential Zone)
Victoria's typical residential zone category. Permits modest density typically up to 3-storey heights.
Granny Flat
A secondary dwelling on a residential lot. Subject to specific state regulations regarding size, separation, and rental.
H
HCA (Heritage Conservation Area)
An area identified for heritage protection at precinct level. External development requires heritage-aware design. Common in established residential suburbs.
HIS (Heritage Impact Statement)
A formal assessment of a proposed development's impact on heritage values. Required for substantial work on heritage-listed properties or in HCAs.
Hold Period
The duration a property is owned. Long-term hold (10+ years) typically delivers stronger returns than short-term hold given transaction costs.
I
Inclusionary Zoning
Planning provisions requiring substantial new developments to include affordable housing. Increasingly used in growth corridors.
L
Land Tax
Annual tax on land value above a threshold. Applies to investment property; principal place of residence usually exempt. Rates and thresholds vary by state.
LEP (Local Environmental Plan)
The primary planning instrument for NSW councils. Sets zones, controls, and provisions for land use and development.
LRBA (Limited Recourse Borrowing Arrangement)
The borrowing structure required for SMSF property purchase. Limited recourse means lender can only claim against the specific property, not other SMSF assets.
LSIO (Land Subject to Inundation Overlay)
Victorian overlay identifying land subject to flooding from the 100-year flood event. Triggers floor level and construction requirements.
M
Mine Subsidence District
Areas overlying historical underground mining where subsidence may affect surface structures. Construction within the district requires specific approval and engineering.
N
NCC (National Construction Code)
The combined national building standards (formerly BCA plus Plumbing Code). Updated triennially.
NRZ (Neighbourhood Residential Zone)
Victoria's lowest-density residential zone. Mandatory height limit (typically 9m). Common in established suburbs prioritising character protection.
O
Owners Corporation
Victoria's terminology for the legal entity managing strata title property. Equivalent to Body Corporate in QLD.
P
Permissibility
The status of a proposed land use under the relevant planning instrument. Categories: permitted, permitted with consent, prohibited.
Phase 1 ESA (Environmental Site Assessment)
A desktop environmental assessment reviewing historical land use to identify contamination potential. First step in contaminated land assessment.
Phase 2 ESA
Physical site investigation including soil and groundwater sampling. Triggered when Phase 1 identifies contamination potential.
Principal Place of Residence
The dwelling where the owner lives. Eligible for CGT exemption and land tax exemption.
R
Right of Way
An easement permitting vehicle or pedestrian access through one lot to another. Common in battle-axe lots and shared driveway configurations.
RZ (Residential Zone)
Generic term for residential zoning. State-specific subcategories include RZ1-RZ5 (ACT), R2-R4 (NSW), NRZ/GRZ/RGZ (VIC), Low/Medium/High Density Residential (QLD).
S
Section 10.7 Certificate
A NSW planning certificate issued by council showing planning controls applicable to a specific lot. Essential pre-purchase document.
SEPP (State Environmental Planning Policy)
NSW state-level planning policy that operates across LGAs. Examples: SEPP (Resilience and Hazards) 2021, SEPP (Affordable Housing).
Settlement
The date and process when property ownership formally transfers from seller to buyer. Typically 6 weeks after exchange.
SMSF (Self-Managed Super Fund)
A superannuation fund where members are trustees. Can hold residential or commercial property with specific regulatory framework.
Stamp Duty
State-based transaction tax on property purchase. Rates and thresholds vary by state and buyer type (first home buyer, foreign buyer).
Strata Title
Property ownership where the owner holds an individual lot plus shared interest in common property. Common for apartments and townhouses.
T
Title Search
The legal document showing registered owners, easements, covenants, and other registered interests on a property. Essential pre-purchase document.
Torrens Title
The standard freehold title system in Australia. Single owner with definitive title. Differs from strata, community, and leasehold titles.
V
Vendor's Statement (Section 32)
Victorian pre-contract disclosure document covering specific property information. Equivalent to NSW Section 10.7 plus additional disclosures.
VPO (Vegetation Protection Overlay)
Victorian overlay protecting native or significant vegetation. Triggers permit requirements for vegetation removal.
Z
Zone
The planning classification of a lot determining permitted uses, density, and controls. Common zones: residential, commercial, industrial, rural, environmental.
How to use this glossary
When reading planning documents, property contracts, or strata reports:
- Identify any unfamiliar acronym or term
- Look up the definition (using this glossary or state-specific resources)
- Confirm jurisdictional applicability (terms vary by state)
- Verify current usage (terminology evolves)
Property and planning documents are technical by necessity. Understanding the terminology is the foundation of informed decision-making.
This glossary covers the 50 most consequential terms for Australian property buyers. Additional state-specific terms and emerging terminology (climate adaptation, biodiversity offsets, modern slavery disclosures) continue to expand the property vocabulary. The discipline of understanding the language is one of the most cost-effective due diligence investments a buyer can make.
