The proposed work will necessitate closing the luge for four weeks this autumn.
The makeover will even the gradient for the part of the tracks below the gondola building and viewing platform, from the area where the fast and the slow luge tracks converge, which has a short steep drop followed by a long shallow stretch of track.
The consent application shows the work will require a total of about 780cu m of earthwork, and involves building a new stacked-stone retaining wall and extending existing timber crib retaining.
The area on Bobs Peak where the Skyline Luge runs is rural general zone, designated as recreation reserve.
The planning document for the proposal states "the extent of the earthworks required to adjust the gradient of the luge track are minor and all earthworks will be contained within the site."
Skyline Gondola, Restaurant and Luge manager Blair Deasy said if the consent was granted, work was planned to start on April 26, 2010.
"We expect to close the luge for four weeks, while the earthwork is ongoing. The luge is very popular with our visitors, so it will of course be a bit of a disruption. But it will be business as usual for all other parts of our operation," Mr Deasy said.