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OtherLindsay SaundersMon 18 Dec 23

Victoria Cuts Red Tape for Granny Flats

A planning permit to build a granny flat is no longer needed in Victoria as government across Australia looks at options to solve the housing crisis.

A part of the Allan Labor government’s Housing Statement reforms, the change means a small second home up to 60sq m can be built without a permit on properties of 300sq m or more. 

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

“This change will make it easier for families to build a small second home on their own lot, near jobs, public transport, education and healthcare services, as well as existing social connections.”

Analysis by the Department of Transport and Planning found about 700,000 lots are eligible to have a small second home in residential zones across the state, and roughly 2450 in rural zones—all of which have no overlays. 

No planning permit is required in a Heritage Overlay, Neighbourhood Character Overlay or Design and Development Overlay. 

However, a planning permit will be required in flood or bushfire-affected areas. 

A standard building permit is still required, and siting, design and amenity requirements must be met but there are no restrictions on how a small second home can be used. 

The reforms have been implemented through changes to planning schemes and the building regulations.

Other governments have enacted changes to make backyard second homes simpler.

This year, the ACT government announced it was making it simpler to divide blocks for dual occupancy, including granny flats.

The reform was limited to 45,000 homes—mostly in the ACT’s south.

South Australia relaxed laws around granny flats this year, allowing them to be let to non-family members, in line with policies in NSW and WA.



Join The Urban Developer for a virtual course where we explore the market opportunity, planning framework, investment model and built outcomes associated with developing granny flats. Click here to learn more.

OtherResidentialHealthcareEducationAustraliaPlanningPolicyPlanningPolicy
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Lindsay Saunders
The Urban Developer - News Editor
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Article originally posted at: https://www.theurbandeveloper.com/articles/granny-flats-victoria-permit-cut