Granny Flat Rules in Victoria (2026): Small Second Dwellings Explained

What counts as a small second dwelling

Planning Victoria defines a small second dwelling as a self-contained home of 60 square metres or less, built on the same lot as an existing home.

• Size: a gross floor area of 60 m² or less, measured to the outside of the external walls and including all roofed areas, such as a covered verandah.
• Self-contained: a kitchen sink and food preparation facilities, a bath or shower, and a toilet and wash basin.
• No mains gas: it must not be connected to reticulated natural gas, so plan for all-electric appliances.
• Same lot: it stays on the same title as the main home and can't be subdivided or sold separately.
• No parking requirement: a car parking space isn't required.

When you don't need a planning permit

On most residential properties, a small second dwelling doesn't need a planning permit when all of these apply:

• The land is in a residential or rural zone, which covers most suburban house blocks.
• The lot is larger than 300 m².
• There is one existing home on the lot, and this is the only small second dwelling.
• No overlay on the land requires a permit for it.
• The design meets the siting requirements, such as height limits and any minimum garden area.

When you still need a planning permit

You will generally need a planning permit if any of these apply:

• The lot is under 300 m² and in a residential zone (other than the Low Density Residential Zone). These need a planning permit assessed against Clause 54 of the planning scheme, whose standards were updated by Amendment VC282 from 8 September 2025. If your block is close to 300 m², check the exact area on your title and ask the council how the threshold applies.
• An overlay on the land requires a permit — bushfire and flooding controls are common examples. Some heritage and design overlays can be exempt if the design meets set conditions, so check the overlay schedule for your property.
• The building is over 60 m², or it would be a second small second dwelling on the same lot. These fall outside the small second dwelling rules.

Check your title and estate rules

A planning exemption doesn't override restrictions on your title. Covenants, section 173 agreements and estate design guidelines can limit outbuildings, materials, height or setbacks — Greater Dandenong, for example, lists covenants and agreements on title among the reasons a permit may be needed. Newer estates commonly have design guidelines, so check your title documents before you start designing.

A building permit is always required

Every small second dwelling needs a building permit, which confirms it meets the siting, amenity, design and safety requirements. On lots over 300 m², those siting and amenity requirements are assessed as part of the building permit rather than through a planning application.

Building permits are issued by registered building surveyors, and most homeowners appoint a private one. Building work can't start until the permit is issued.

Can you rent out a granny flat?

Yes. Anyone can live in a small second home — a family member, a dependent relative or an unrelated tenant — and you can rent it out. The residential tenancy requirements that apply to any rental home, including room sizes, facilities and smoke alarms, apply to a small second home too. Consumer Affairs Victoria explains a rental provider's obligations.

What does a granny flat cost in Melbourne?

As an indicative range, a 60 m² granny flat costs around $120,000 to $180,000 to build in Melbourne. Site conditions move the number the most:

• Connecting water, sewer, stormwater and electricity, and how far those services have to run.
• Access for machinery to the back of the block.
• Slab and footing design, which depends on the soil report.
• The level of finish in the kitchen and bathroom.
• Design, building surveyor and any planning fees, unless your quote includes them.

Granny flats and dependent person's units

The small second dwelling rules replaced the old dependent person's unit — a movable unit for a relative who depends on someone in the main home. Transitional rules still allow new applications for those units until 28 March 2027, and existing lawful units remain lawful. Because anyone can live in a small second dwelling, it is usually the more flexible choice.

Before you start: a quick checklist

• Look up your zone and overlays on VicPlan.
• Confirm the lot area on your title, and check for covenants, agreements or estate guidelines.
• Plan within 60 m², including any roofed outdoor areas.
• Design around all-electric appliances.
• Talk to a registered building surveyor early about siting and services.
• Get an itemised quote that shows service connections and site costs separately.