New Granny Flat Reforms Come Into Effect

15 December 2023

As part of the Allan Labor Government’s bold Housing Statement reforms, it is now easier to build a small second home on the same property through changes to the planning and building systems, giving Victorians more housing choice where they want to live.

A small second home up to 60 square metres can now be built through a quick and easy process without a planning permit if they are on properties 300 square metres or larger.

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

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 there are around 700,000 lots of 300 square metres or larger eligible to have a small second home in residential zones across the state, and roughly 2,450 in rural zones – all of which have no overlays.

Even more Victorians are now eligible to have a small second home on their residential or rural lot. No planning permit is required in a Heritage Overlay, Neighbourhood Character Overlay or Design and Development Overlay.

To keep families safe, 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.

They can give families the space to grow together, give people somewhere to stay when they visit for the weekend, or can even be rented out to provide extra income to help with the increasing cost of living.

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

Comprehensive information for applicants and practitioners is available at and on the Victorian Building Authority website

Quotes attributable to Minister for Planning Sonya Kilkenny

“We are getting on with implementing our bold planning reforms to provide even more affordable housing choices for Victorians in the areas they want to live – removing the burden of planning approvals that for too long has put building a small second home in the too hard basket.”

“More than 700,000 homes across Victoria are eligible for a small second home – we’re making it easier for more Victorians to live where they want to live and close to family.”

Reviewed 15 December 2023

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