Although there were objections to the multi-million dollar expansion of a Sydney brothel, the Land and Environment Court ignored the opposition on moral grounds.

Commissioner Susan O'Neill of the Land and Environment Court explained that despite the moral objection on the nature of activities raised by some Sydney residents and public submissions, the court had to rule in favour of Stiletto's $12-million expansion because its use as sex premises is "legal and permissible" which made moral objections irrelevant.

Besides the moral aspect, the public submission also cited the illegal serving of alcohol, drunken customers, sex trade workers who use drugs, safety concerns, high level of noise, the possible decline in property value and difficulty in parking as their grounds in objecting the planned expansion.

With moral objections set aside, the biggest hurdles to Stiletto's expansion were parking concerns and the ratio of customers to sex workers.

The court reversed a decision made by the city council in 2011 to reject the application for expansion into a mega brother complex because it was considered too big. With the green light from the council, the expansion could proceed.

The court pointed out that there was no maximum size prescribed for brothels and lack of evidence that any crimes associated with the existence of Stiletto. However, it placed a maximum limit to 60 the number of customers, which in effect set the ratio of 1.5 clients per prostitute, half of the 1:3 ratio that the brothel owners wanted.

The expansion includes the building of a wing for group bookings that would feature multiple beds and pool tables. With a new wing, Stiletto would have 40 rooms that charge an hourly rate of A$370 which includes room, lady of choice and beverages.

Australia leaves the legality of prostitution to states and territories, thus the operation of brothels such as Stiletto is legal in some parts of the country like New South Wales and prohibited in other areas such as the Northern Territory.

Stiletto is open 24/7, except on Christmas Day. Its mixed clients include celebrities such as movie stars, athletes and rock artists.