In December 2023 Victoria made it far simpler to build a small second home. This is the plain English version of what changed and what it means for your backyard. It is general information, not planning advice. Always confirm the rules for your specific property with your council.
The core rule
A small second dwelling of 60 square metres or less can generally be built with no planning permit in most residential and rural zones. You still need a building permit, and the dwelling must meet the building code.
The conditions that come with it
It must be a second dwelling on the same lot as your existing home. It must be self contained, with its own kitchen, bathroom and toilet. It must be all electric, with no connection to natural gas. It stays on your title. You can rent it out. You cannot subdivide it or sell it separately.
When you still need a planning permit
On very small lots of 300 square metres or less. Where an overlay applies, such as heritage, flood, bushfire or environmental. In Green Wedge and Rural Conservation zones. We check all of this for your block before anything starts.
What a building permit covers
The dwelling must be built to NCC Class 1a standard. That means a 7 star energy rating with a whole of home energy budget, minimum ceiling heights, natural light and ventilation, hard wired smoke alarms, wet area waterproofing and a compliant structure for your site. We build to this standard and provide the Occupancy Certificate.
A quick word on sheds
A backyard shed cannot simply become a bedroom. A habitable room has to meet the full building standard, and converting a small shed usually costs close to building new. If you want a compliant, warm, finished dwelling, building new is almost always the better value.
What this means for you
If you own a detached house on a reasonable block, the path to a second dwelling is now shorter than most people realise. The slow parts are the decision, the finance and the approvals. The build itself is fast. When you are ready to think about paying for it, read our guide on how to finance a granny flat in Victoria.
Frequently asked questions
How big can a second dwelling be in Victoria?
Up to 60 square metres to use the no planning permit path. Larger dwellings are possible but may need a planning permit.
Can I rent out a second dwelling?
Yes. It can be rented. It cannot be sold separately from your main home.
Do I need council approval?
Often no planning permit, but a building permit is always required. We manage it.
Can it be used for family?
Yes. Many are built for parents or adult children, with their own entry, kitchen and bathroom.
See if your block suits a second dwelling. Send us your suburb and rough block size.
Related guides
How much a granny flat costs in Melbourne. Modular granny flat builder Melbourne. Granny flats in Cranbourne, Frankston, Werribee, Melton, Pakenham and Hoppers Crossing.