The Lintel Grange Homestead complex amendment will proceed to a panel due to objections over the heritage protection.

It was first given an interim protection by the City of Ballarat in 2023, with the proposal opened for public feedback when proceeding to a permanent overlay in the planning scheme.

There were 47 objecting the amendment and 18 were unresolved, so the council had to vote to pass it along to an independent panel.

At the most recent council planning meeting, Councillor Daniel Moloney said it was "unnecessarily bureaucratic from now on".

"Unfortunately, we're stuck with the situation," he said.

Cr Moloney said it was "frustrating for everyone" and would be just "extra time and cost" for the landowners who were working with council officers.

Planning Panels Victoria hears submissions, provides recommendations and advice about planning scheme amendments.

The homestead was saved from demolition in 2023, when the current owners lodged a planning application with the City of Ballarat in June to demolish the homestead and agricultural building.

A new five-bedroom house, with a swimming pool, would be built in the same area of the old homestead in an expected $2 million development.

Lintel Grange was home to five generations of the Edmonston family since the 1860s.

At the council's planning delegated committee meeting on July 12, 2023, councillors supported officers' recommendation to seek an interim heritage overlay.

Now, the amendment will be brought the planning panel after councillors agreed to proceed the amendment, as it was "the only way forward" as councillor Mark Harris said.