In Sydney, local council approvals often involve stricter zoning rules, higher development fees, and longer processing times compared to Melbourne. Melbourne tends to have more flexible zoning and lower council fees, which can reduce initial setup costs. Overall, starting a retail business in Sydney may be more expensive and time‑consuming than in Melbourne.

In simple terms, both Sydney and Melbourne require local council approvals (zoning, planning, building permits, health and safety permits, signage, food registration etc.) before you open a retail business, and the fees and timelines are quite similar in each city typically a few hundred to a few thousand dollars and several weeks per permit, depending on what you need and how big your fit‑out is.

In Sydney, local councils (NSW) often have stricter zoning, approvals and licensing layers, and businesses may face higher permit and compliance fees (e.g., signage, health, traffic) plus more complex planning checks before opening. NSW is also moving to reduce red tape, but approvals across multiple councils can still add cost and time. In Melbourne, councils require planning and building permits too, but costs and processing can vary by municipality and sometimes be slightly lower or more predictable, with formal planning pathways like VicSmart for simpler applications. Heritage overlays or metropolitan levies can add extra charges. Overall, Sydney tends to involve higher regulatory complexity and potentially higher local fees, while Melbourne’s system can be more structured with clear planning categories both require budgeting for permits, consultant input, and council fees before opening.