Granny Flat Rules Victoria — Planning Permits, Building Standards and What's Changed

Victoria's granny flat framework — the current rules

Victoria overhauled its granny flat framework through a series of planning scheme amendments between December 2023 and March 2026. The result is a system that is more permissive than before — but still materially different from the NSW CDC pathway.

The official Victorian planning term is "small second dwelling." If you've heard the term "Dependent Person's Unit" (DPU), that framework has been wound down — the transitional provisions under Amendment VC266 expired on 28 March 2026. All new granny flat builds in Victoria now follow the small second dwelling pathway.

What you can build

A small second dwelling in Victoria must be:

• 60sqm or less in floor area
• Secondary to the principal dwelling on the lot
• Self-contained (kitchen, bathroom, living, and sleeping areas)
• Constructed by a VBA-registered builder

Unlike NSW, Victoria has no minimum lot size requirement in planning law. Your key constraints are your zone, any overlays that apply to your property, and whether you can meet the building standards.

Do you need a planning permit?

For most homeowners on lots over 300sqm in a standard residential zone, the answer is no. Amendment VC253 (December 2023) removed the planning permit requirement for small second dwellings in the following zones:

• General Residential Zone (GRZ)
• Neighbourhood Residential Zone (NRZ)
• Residential Growth Zone (RGZ)
• Low Density Residential Zone (LDRZ)

The catch: overlays. Even if your lot meets the zone and size criteria, a planning permit is still required if any of these overlays apply:

• Heritage Overlay (HO)
• Bushfire Management Overlay (BMO)
• Land Subject to Inundation Overlay (LSIO) or Special Building Overlay (SBO)
• Significant Landscape Overlay (SLO)

You can check which overlays apply to your property using VicPlan, the Victorian Government's free planning map tool. Search your address, and the overlays will be listed under the property information panel.

If your property is in a zone not listed above — such as a Mixed Use Zone or Township Zone — check your council's planning scheme for secondary dwelling provisions.

Building permit — always required

Regardless of whether you need a planning permit, a building permit is always required in Victoria. This is issued by a registered building surveyor (private or municipal) and confirms the build meets the National Construction Code (NCC) and all Victorian building regulations.

Victoria imposes several requirements that other states do not:

7-star NatHERS Whole of Home rating. Under NCC 2022, all new Class 1a dwellings in Victoria — including small second dwellings — must achieve a minimum 7-star Whole of Home energy rating. This affects insulation levels, glazing specifications, and orientation.

Livable Housing Design Standard — Silver Level. Victoria mandates Silver Level compliance for all new small second dwellings. In practice, this means:

• Step-free entry (flush thresholds)
• Wider doorways (minimum 820mm clear opening)
• Wider corridors
• An accessible toilet on the entry level
• Reinforced bathroom walls for future grabrail installation

These requirements shift design and cost — particularly for compact footprints where every centimetre matters. A 40sqm studio designed to Livable Housing Silver will have different internal proportions than one designed without these requirements.

No gas connection. Small second dwellings cannot connect to reticulated natural gas under Victoria's Gas Substitution Roadmap. All cooking, hot water, and heating must be electric.

What happened to DPUs?

The Dependent Person's Unit was Victoria's historical granny flat framework. A DPU required the occupant to be a "person dependent on the resident of the existing dwelling" — typically an elderly parent or a person with a disability. The DPU had to be removed or converted back when the dependent person no longer lived there.

Amendment VC253 introduced the broader small second dwelling provisions in December 2023. DPU transitional provisions under VC266 expired on 28 March 2026. As of April 2026:

• You cannot establish a new DPU
• Existing DPUs that were lawfully established continue as existing use
• All new secondary dwellings follow the small second dwelling pathway — no dependent person requirement, no removal obligation

This is a significant change. Victoria now allows granny flats that can be rented to anyone, used by family, or left vacant — the same flexibility as NSW and QLD.

Renting out your Victorian granny flat

There are no occupancy restrictions on small second dwellings in Victoria. You can rent to anyone — family, friends, or the general market. Standard residential tenancy laws under the Residential Tenancies Act 1997 apply.

If you're considering short-term rental accommodation (Airbnb, Stayz), be aware of Victoria's short-stay levy, which took effect on 1 January 2025. The levy applies to stays under 28 consecutive days and is administered by the State Revenue Office.

For detailed cost analysis and rental yield comparisons, see our granny flat building costs guide.

How VIC compares to NSW

Victoria and NSW are the two most active granny flat markets in Australia, but the rules differ in several ways:

| Factor | Victoria | NSW | |---|---|---| | Max floor area | 60sqm | 60sqm | | Min lot size | None | 450sqm (CDC) | | Fast-track approval | No CDC equivalent | CDC via private certifier | | Building permit | Always required | Construction Certificate + OC | | Energy rating | 7-star NatHERS | BASIX certificate | | Accessibility | Livable Housing Silver | Not required | | Gas connection | Not permitted | Permitted | | Occupancy restrictions | None | None |

The biggest practical difference: NSW has the CDC pathway, which gives a defined fast-track approval through a private certifier (10–20 business days). Victoria has no equivalent — the building permit process typically takes 2–4 weeks for straightforward builds, but there is no statutory timeframe equivalent to a CDC. For a detailed comparison of fast-track versus standard approval, see our CDC vs DA approval guide.

Typical timeline and costs

A straightforward Victorian granny flat build typically follows this timeline:

• Design and planning: 4–8 weeks (longer if planning permit needed)
• Building permit: 2–4 weeks
• Construction: 12–20 weeks depending on build type and complexity

A turnkey granny flat in Victoria typically costs between $130,000 and $220,000 GST-inclusive for a standard 1–2 bedroom build on a flat, accessible site. The 7-star NatHERS and Livable Housing requirements can add $5,000–$15,000 compared to equivalent builds in states without these standards (based on industry estimates; last checked April 2026). Budget a 10% contingency ($13,000–$22,000) on top of any estimate.

For detailed cost breakdowns using the four-bucket model, see our granny flat building costs guide. To compare quotes from granny flat builders serving Victoria, get free quotes through our comparison platform.

What to check before you start

Before engaging a builder or designer, verify these three things:

1. Your zone and overlays — Use VicPlan to confirm your property is in a residential zone and identify any overlays
2. Your builder's registration — Check the VBA practitioner register at vba.vic.gov.au to confirm your builder holds current registration
3. Your lot constraints — A site survey will identify practical constraints (slope, access, existing trees, setbacks to boundaries) that affect design and cost

For state-by-state comparisons of granny flat rules across Australia, including WA's distinct R-Codes framework, see our state guides.

GrannyFlatGuide provides independent information to help you understand the granny flat building process. This is not legal, planning, or building advice. Regulations change, and requirements vary by council. Always verify current requirements with your local council or a qualified town planner before making decisions.