Councillors voted against granting a permit to the 45-dog pugalier farm on Tuesday, meaning the business – which continues to sell dogs online – cannot register as a Domestic Animal Business.

The permit was rejected on the grounds that the business owners did not provide enough information to the council about efforts to reach compliance.

Loddon Shire director operations Steven Phillips said the council had the power to retrospectively approve a permit for the farm if it was up to standard – regardless of the number of dogs – but it would be up to the Agriculture Department to determine if it could become a Domestic Animal Business.

Related: Loddon Shire set to refuse permit to 45-dog puppy farm

He said they would work with the business owner and the RSPCA to find a solution.

“Council is working with the applicant to try to achieve compliance,” Mr Phillips said.

“We will work with the RSPCA to ensure the animals’ welfare is considered.”

No time frame has been set for the business to reach compliance.

Mr Phillips said enforcement action is “a potential”.

The business owner earlier told the Bendigo Advertiser that Loddon Shire had no issue with their property for 13 years, but a new compliance team had started investigating them at the start of last year.

He said in the past a compliance officer would visit twice a year and they were told that “as long as the neighbours were happy” then “nothing needed to be done”.

Mr Phillips could not comment on the specifics of the allegation, but said legislation was continuing to change in Victoria and the council had been closely monitoring the property.

“This property has been on our radar for some time, and we have had discussions with them for some time,” he said.

“We assess each situation as the facts come to light.”

The puppy farm surrendered six dogs to an animal shelter last year suffering a range of conditions including mange and heart murmurs.

Loddon Shire found conditions at the farm “do not comply with the code of practice”.

A volunteer with the animal shelter described the farm as “disgusting” with an overwhelming smell of ammonia, and said the dogs were not socialised and their diet was poor.

The RSPCA has investigated the property since early 2017 but is yet to take enforcement action.

The RSPCA said enforcement powers had been increased earlier this year, and the Major Investigation Unit has prosecuted six cases in Victoria and three remain before the courts.

Breeders will be banned from having more than 10 breeding females from April 2020, and breeders cannot retrospectively become a Domestic Animal Business unless they bring the number of dogs down to that number.

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