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Easier for Victoricans to build Granny Flats from December 2023.

by | Jan 10, 2024 | Property, Property Advice, Property Investors, Property Taxation, Rental Properties, Tax Planning, Uncategorized

Backyard Granny Flat
Secondary Dwelling

From December 2023 the Victorian Government has passed planning changes to make it easier to build Granny Flats – or “small secondary dwellings”, on existing homes.

The Victorian Premier Jacinta Allan revealed that planning permits will no longer be required to build small secondary homes on their properties.

“Too often, families want to keep their older and younger generations closer together – but are priced out of established areas around the state.”

She added that for many Victorians, “the burden of planning approvals has put building a small second home in the too-hard basket”.

The initiative was first outlined in the government’s Housing Statement and means small second homes under 60 square metres – also known as granny flats – won’t require a planning permit on properties 300 square metres or larger where there are no flooding or environmental overlays.

The new reform will also place no restrictions on how small second homes can be used. Ms Allan outlined: “They can be used flexibly, whether it’s keeping family members closer, providing temporary housing or being rented out for additional income.”

Despite the changes to Victoria’s planning and building systems, small second homes will still need a building permit and must meet ResCode (residential design code) setback and siting requirements. They also cannot be subdivided or separately sold off from the main home.

Weighing in, the Victorian Minister for Planning, Sonya Kilkenny, said the green lighting of granny flats marks “an important part of our bold planning reforms – as we get on with building 800,000 new homes in Victoria over the next decade – ensuring Victorians can live where they want to live and close to family”.

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