I suppose it’s better than “any other competent business” – but only marginally. The problem might arise if, for instance, someone used it to belatedly propose that a resident receive a Notice To Comply for an alleged by-law breach. That would get tossed immediately if it went to NCAT.
I think the rule of thumb would have to be, are there likely to be actions or consequences to which someone might object. In other words, if it doesn’t really matter, then it doesn’t really matter.