Australia, like a lot of ex-commonwealth countries, runs off the Torrens title system, where a register of land holdings is maintained by the state. The short version of which is that the land is and always will be the property of the crown, and one purchases the title to that land. This provides the title holder with certain rights and claims ... however, the land, and thus the "Land use zones" are defined at state and local government levels called "planning schemes" and for the most part, these are fine. The problem comes when local councils are run like businesses and can only function from the income they make - which is in the form of property tax or levies (called "rates") charged to title holders. Of course, residential rates are often higher and, thus, when forced to make a decision, like all good businesses, they tend to err towards the highest paying customer's view of right.
This doesn't mean you can't appeal or take it to another body ... but as with all such actions, you may win the battle, but the war cost you more than you won.