A plan of subdivision allows an applicant to divide land into two or more new parcels of land that can be disposed of separately. The only new parcels that can be created by a plan of subdivision are lots, roads, reserves or common property. As part of the subdivision process, a plan may create restrictions, owners corporations and any easements necessary to make a development functional.

A plan of subdivision may also remove or vary restrictions and easements (created in an earlier plan of subdivision), with a planning permit under the Subdivision Act 1988.