I think some people on this thread are a bit mixed up (which is understandable because the law is also a bit mixed up).
Councils are concerned with whatever planning scheme is in force in your area.
Building boards are concerned with the Building Act.
So, to clarify - if you make a change to a structure that changes its use (eg turning a verandah into an enclosed living area) then that's a council thing. The main reason for this is because councils measure boundaries (distances to your property line) in funny ways, with different rules depending on what you use the area for. For example, in the NT (where I am), a bedroom without windows may be 1.5m from the boundary. As soon as you put a window on that same room, it must be no less than 3m from the boundary.
Lots and lots of ridiculous rules apply that vary from council to council, planning scheme to planning scheme - and they change all the time.
To further clarify - if you build any structure that is equal to or greater than 1m in height, you need a building permit. Building permits are issued by engineers/certifiers. Whether or not the structure is indoors or outdoors doesn't matter, so it can be an internal wall, or a fence, or even a tall BBQ. This is all building board stuff.
As for the price limit stuff, that determines when you need a builder. Technically, if it weren't for that, you never need a builder - all you need is a certifier to make sure the work is done properly and signed off. As soon as it is a certain type of structure (eg a building over x meters in height/number of floors), or a certain cost (from memory it is $17 000 and up) then you need either a builder, or be an owner builder.
Then you have all of the lovely stuff where it gets even more mixed up, depending on land zoning. For example, in some rural areas, on one block of land, you may have 1 house, 1 granny flat, and as many sheds as you like. However, as soon as you put a kitchen and bedroom in one of your sheds, the shed becomes a granny flat, and is hence illegal. Then of course you can argue that it is a caretakers residence, but let's be honest - building boards and councils are full of beaurocrats and muppets who love nothing more than do your head in with ever changing rules and regulations that strangely change according to how dumb/smart they are and if they're having a good day or not.
The only way to know for sure is to call a local certifier.
If you are silly enough to call the council directly, be sure to have large doses of tranquilizers close at hand so that they don't give you a heart attack, or a gun, to kill them all.