Thinking about adding a granny flat to your property in Victoria? You’re not alone. Whether it’s for ageing parents, extra rental income, or simply more living space, granny flats are becoming one of the most in-demand additions for homeowners in Victoria. But before you can break ground, there’s one crucial piece of the puzzle you need to navigate: the permit process.

Victoria’s rules around granny flats, also known as secondary dwellings, have changed significantly over the past few years. Understanding what’s required is the difference between a smooth, compliant build and one riddled with delays or legal headaches.

In this guide, we break down everything you need to know about securing a granny flat permit in Victoria, with insights tailored for homeowners, property investors, and anyone thinking about a second dwelling on their block.

Do You Need A Permit For A Granny Flat In Victoria?

Yes, but not always a planning permit. It depends on your site, design, and location.

There are two main types of permits involved:

• Planning permit (managed by your local council)
• Building permit (approved by a private or municipal building surveyor)

The good news? As of December 2023 updates to Victoria’s planning laws, many homeowners can now build a granny flat up to 60m² without requiring a planning permit, provided the dwelling meets specific conditions around zoning, overlays, and use.

However, a building permit is still mandatory in every case. This ensures your granny flat complies with the Building Code of Australia, including structural integrity, fire safety, energy efficiency, and livability standards.

So whilst it’s become easier to build granny flats in Victoria, there’s still a clear process to follow.

When Is A Planning Permit Required For Your Granny Flat?

Although many properties are exempt, there are still situations where you’ll need to secure a planning permit before building. Common triggers include:

Overlay-Based Triggers:

• Your land is affected by a heritage overlay (protects historically significant areas)
• Bushfire Management Overlay (BMO) applies to your property
• Floodway, Land Subject to Inundation, or Special Building Overlay affects your site
• Environmental Significance Overlay (ESO) restricts development

Site-Specific Triggers:

• Your lot is below 300m² (the state minimum for planning permit exemption)
• You’re proposing a granny flat larger than 60m²
• You have an existing secondary dwelling or non-compliant structure on the property
• Your design doesn’t meet standard setback requirements (typically 1m side, 4m rear)
• Site coverage exceeds council limits (often 50-60% of total lot area)
• Private open space requirements aren’t met (minimum 40m² at grade)

Council-Specific Variations:

Each local council in Victoria interprets and enforces planning policy slightly differently. What’s allowed in Werribee might differ from Yarra or Frankston. That’s why it’s important to do more than just Google your address; you need a proper feasibility analysis.

For detailed requirements by suburb, see our comprehensive guide: Council Requirements by Suburb in 2025.

Understanding Second Dwelling Compliance Victoria: The Real Cost Impact

Meeting the second dwelling compliance requirements goes beyond simply getting a permit. These regulations ensure your build meets health, safety, and environmental standards, and vary depending on council-specific overlays and zoning policies.

Compliance Costs Breakdown (2026 Melbourne):

Compliance Item	Cost Range	Timeline	Impact on ROI
Site/soil assessment	$800 – $1,500	1-2 weeks	Essential for foundation design
NatHERS energy report (7-star)	$400 – $800	3-5 days	Mandatory for building permit
Structural engineering	$1,200 – $2,500	1-2 weeks	Required for slab/footing design
Planning permit (if required)	$1,500 – $3,500	6-12 weeks	Major timeline impact
Building permit fees	$1,800 – $3,000	4-6 weeks (private certifier)	Mandatory all builds
Utility connection permits	$500 – $1,200	2-3 weeks	Varies by distance
Total compliance costs	$6,200 – $12,500	8-18 weeks	Adds 3-6 months to payback period

For investors: These compliance costs represent 3-6% of your total build cost. A $230,000 granny flat with $10,000 in compliance costs still delivers strong rental yields of 8-12%, but understanding these upfront prevents nasty surprises.

Navigating Second Dwelling Compliance: What You Must Meet

Navigating second dwelling compliance in Victoria involves a full understanding of:

1. Minimum Lot Sizes

• State minimum: 300m² (for planning permit exemption)
• Council variations: Some councils require 400m² or 500m² depending on zone
• Check your specific council requirements

2. Site Coverage Restrictions

• General Residential Zone: Typically 50-60% maximum site coverage
• Both dwellings combined must stay within this limit
• Includes all roofed structures, decking over 300mm height, and carports

3. Setbacks (ResCode Requirements)

• Side boundaries: 1m minimum (increases with building height)
• Rear boundary: 4m minimum in most councils
• Street setback: Varies by council (typically 6-9m from front boundary)
• Buildings over 3.6m high may require greater setbacks

4. Height Limits

• Flat sites: 9m maximum to roof line
• Sloping sites (>2.5 degrees): 10m maximum
• Measured from natural ground level (pre-excavation)
• Some councils specify maximum storeys (typically 2)

5. Private Open Space

• Minimum 40m² at ground level
• Must have one dimension of at least 5m
• Must receive at least 3 hours of sunlight to at least 50% of area on September 21

6. Energy Efficiency (NCC 2022)

• 7-star NatHERS rating mandatory
• Double-glazed windows in most climate zones
• Efficient heating/cooling systems
• LED lighting throughout

7. Livable Housing Design Standards (Silver Level)

• Step-free (flush) entry
• Accessible toilet on ground floor
• Reinforced bathroom walls for future grab rails
• Wider doorways (850mm min) and corridors (1050mm min)

These nuances are often underestimated by first-time builders, which is why most homeowners opt for permit specialists who can streamline compliance from start to finish.

The Granny Flat Approval Process: Week-by-Week Timeline

Here’s a detailed breakdown of how most granny flat approvals progress in Victoria:

Week 1-2: Site Assessment & Feasibility

• Property consultant evaluates your land for zoning, overlays, lot size
• Soil test conducted (if required)
• Services location identified (sewer, water, power, gas capped)
• Cost: $1,500-$2,500 | Decision point: Proceed or re-evaluate

Week 3-4: Concept & Design

• Tailored granny flat layout drawn based on your needs
• Council setback requirements incorporated
• Energy efficiency measures designed in
• Cost: Included in fixed-price builds | Deliverable: Concept plans

Week 5-8: Engineering & Documentation (if no planning permit needed)

• Structural engineering drawings
• NatHERS energy report
• Building permit documentation prepared
• Cost: $3,500-$5,500 | Timeline: 4 weeks

Week 5-16: Planning Application (if required)

• Architectural plans, site details, supporting docs submitted to council
• Public notice period (14 days)
• Council assessment and decision
• Cost: $2,500-$4,500 | Timeline: 8-12 weeks (can extend to 16+ weeks)

Week 9-14: Building Permit Submission

• Lodged through private certifier for faster turnaround (4-6 weeks)
• OR through council building surveyor (8-12 weeks, lower cost)
• Certifier may request council confirmation on ambiguous elements
• Cost: $1,800-$3,000 | Timeline: 4-12 weeks depending on certifier choice

Week 15-16: Revisions (if required)

• Any feedback from council or certifier addressed
• Revised plans submitted
• Cost: Minimal if done right first time | Timeline: 1-2 weeks

Week 17: Final Approval & Construction Commencement

• Building permit issued
• Construction begins
• Timeline from approval to handover: 16-20 weeks for quality build

Total Timeline:

• No planning permit needed: 17-20 weeks from concept to construction start
• Planning permit required: 25-36 weeks from concept to construction start

Private Certifier vs Council: Strategic Decision for Investors

Factor	Private Certifier	Council Building Surveyor
Cost	$2,500-$3,500	$1,500-$2,200
Timeline	4-6 weeks	8-12 weeks
Responsiveness	High (direct contact)	Variable (busy departments)
Best for	Investors wanting fast returns	Budget-conscious builds, no time pressure

For rental income investors: The 4-6 week time saving with a private certifier means you start earning rent 1-2 months earlier, which often justifies the extra $1,000-$1,500 cost.

Common Approval Mistakes That Cost Thousands

Mistake #1: Assuming “No Planning Permit” Means “Easy Approval” Reality: Building permits still require full compliance. Many builders underestimate NCC requirements.

Mistake #2: Not Checking Existing Structures Reality: An old shed or non-compliant carport can trigger planning permit requirements or require demolition first. Check your property carefully.

Mistake #3: Ignoring Section 173 Agreements Reality: Your property’s Certificate of Title may have restrictive covenants preventing secondary dwellings. Always check title first.

Mistake #4: DIY Design Without Professional Input Reality: A design that doesn’t meet setbacks costs $2,000-$5,000 to redesign and delays your project 4-8 weeks. Professional feasibility studies save money.

Mistake #5: Choosing Builders Who Don’t Handle Permits Reality: Some builders quote construction only, leaving you to navigate permits alone. This rarely ends well.

Why Most Homeowners Seek Permit Support

If you’ve ever tried to decipher zoning maps or get a clear answer from your local council, you know it can be frustrating and confusing. The truth is, even with simplified laws, the permit process is still technical and highly detail-oriented.

That’s where Innovista Group comes in.

We help homeowners and property investors navigate the full approval process. From planning permit granny flat Victoria assessments to construction-ready documentation, we handle the red tape so your project moves smoothly.

Our Permit Management Services Include:

• Title and property compliance checks
• Identification of permit triggers
• Drafting council-compliant plans
• Communication with planners and certifiers
• Fast-tracked approvals wherever possible
• Compliance assurance through construction

Why Choosing The Right Granny Flat Builder Matters

Not all consultants prioritise compliance. Some builders or designers may give you a quote but leave the permit process entirely up to you, risking costly errors and project delays.

At Innovista Group, we do things differently. Our team focuses exclusively on granny flat Victoria projects, which means we understand the nuances of local council expectations and overlays across Melbourne and regional areas.

All our designs, particularly the Lana Series, including Lana 43 and Lana 60, are developed with compliance at the core. We provide extra building surveyor inspections during construction to ensure everything remains up to code.

We don’t just deliver beautiful builds. We hand over legal, efficient, and high-yield secondary dwellings for your block.

How Victoria’s Rules Continue To Evolve

Victoria’s housing framework continues shifting to support more compact, affordable homes.

Key changes that benefit granny flat Victoria projects include:

• December 2023: Exemptions from planning permits for dwellings under 60m²
• October 2023: Mandatory 7-star energy efficiency (NCC 2022)
• March 2024-2026: Transitional provisions for existing Dependent Person’s Units
• February 2025: Plan Victoria 2051 targets 2.24 million new homes by 2051, with granny flats as key supply mechanism
• Mid-2025: Proposed subdivision code reforms (under consultation)

These changes open up new opportunities, but only if you navigate them properly with a qualified team.

Final Thoughts: Plan Well, Build Smarter

Getting approval for a granny flat Victoria build doesn’t have to be stressful. It can be the start of a smart, value-adding solution for your family or investment portfolio.

With Innovista Group, you’ll have a dedicated team guiding you from concept through to construction, handling permits, council interactions, and compliance so you don’t have to.

Understanding compliance costs upfront means:

• No surprise $10k+ cost blowouts mid-project
• Accurate ROI calculations from day one
• Rental income starting 3-6 months earlier through efficient approvals
• Peace of mind your build is 100% legal and compliant

Let’s get your project started on the right foot.

Want to add value to your property with a high-spec granny flat? Contact us to find out how. Or book your free site assessment to receive a detailed feasibility report for your specific property.