Victoria changed the rules for granny flats in December 2023, and the changes made building a backyard home much simpler for most homeowners. This guide explains what the rules are in 2026, which permits you still need, and the site checks that decide whether your block is ready for a G-Flat™.
What Victoria calls a granny flat
The Victorian planning system now uses the term small second dwelling, sometimes called a small second home. To count as one, it must:
- have a floor area of 60m² or less
- include its own kitchen, bathroom and toilet
- sit on the same lot as an existing home
Every G-Flat™ is designed at 60m² to fit inside these rules. For more background, see our guide to small second homes in Victoria.
Do you need a planning permit?
In most cases, no. A small second dwelling of up to 60m² can be built on most residentially and rurally zoned properties without a planning permit, as long as no flooding, environmental or other special planning controls apply to the land.
There are two main exceptions to check:
- Lots under 300m²: in most residential zones, a smaller lot generally needs a planning permit, and the residential development standards are assessed as part of that permit.
- Overlays: controls such as heritage, bushfire or flood overlays can mean a planning permit is still required.
The official rules are on the Victorian Government small second dwellings page. Rules can also be applied differently between councils, so our guide to council requirements by suburb is a useful next step.
A building permit is always required
Even when no planning permit is needed, every small second dwelling needs a building permit from a registered building surveyor. The building permit covers siting, amenity, design and safety, including:
- structural engineering and footings
- energy efficiency under the National Construction Code
- fire safety and smoke alarms
- plumbing and electrical compliance
- setbacks and siting on your block
The building permit and all required reports are included in every G-Flat™ price. Read more in granny flat approvals in Victoria.
Rules every small second dwelling must follow
Whichever permit path applies, a small second dwelling in Victoria:
- cannot be subdivided or sold separately from the main home
- must not be connected to reticulated natural gas
- does not need its own car parking space
- must meet the siting, design and amenity requirements in the planning scheme and building regulations
It also needs an existing home on the same lot, which is why you can’t build a granny flat on empty land.
Energy and design standards
New homes in Victoria must meet the energy efficiency and livable housing requirements of the National Construction Code, including a 7-star NatHERS energy rating. Our guide to what the 7-star energy rating requires explains what this means in practice.
Every G-Flat™ includes double-glazed, powder-coated aluminium windows and a reverse cycle split system as standard, and the Homestead finish level adds R2.5 wall insulation.
Site checks before you build
The rules tell you what is allowed. Your block decides what is practical. Before you commit, it is worth checking:
- your Certificate of Title for easements and restrictive covenants (see restrictive covenants)
- setbacks from side and rear boundaries (see setback requirements)
- bushfire and flood overlays (see bushfire overlay areas and flood zones)
- how far water, sewer and power need to run from the main house
- soil type, slope and construction access
Our free site assessment covers all of these before you sign anything. You can also read what makes a block suitable for a granny flat.
Renting out a granny flat in Victoria
Anyone can live in or rent a small second dwelling, including family members or unrelated tenants. If you rent it out, residential tenancy requirements apply, such as minimum standards for facilities and smoke alarms. Our guide on how to legally rent out a granny flat in Victoria covers the details.
What a compliant G-Flat™ costs
Every G-Flat™ is a 60m² turnkey build with a fixed price for each finish level: Affordable $198,000, Homestead $208,000, Signature $238,000 and Luxe $265,000. All five floor plans (Stella, Aurora, Lana, Lana 2 and Sirius) cost the same within each finish level, and every price includes the building permit, all plans, connection of services up to 10m and a 10-year structural warranty.
Prices are a guide only. Sites 70km or more from the Melbourne CBD attract a 12.5% regional surcharge, and site conditions can affect the final price. A free site assessment confirms the price for your block.
For a full breakdown, see granny flat pricing in Victoria.
How long it takes
A G-Flat™ takes approximately 5 months end to end, from planning through to handover, including the building permit, approvals, construction and connection of services.
Frequently asked questions
Do I need a planning permit for a granny flat in Victoria?
Usually not, if it is 60m² or less, your lot is 300m² or more and no special overlays apply.
Do I need a building permit?
Yes. Every small second dwelling needs a building permit.
Can I sell the granny flat separately?
No. It cannot be subdivided or sold separately from the main home.
Can I rent it out?
Yes, to family or unrelated tenants. Residential tenancy requirements apply.
Can a granny flat have gas?
No. Small second dwellings must not be connected to reticulated natural gas.
Check your block
The simplest way to know which rules apply to your property is a free site assessment. Book your free site assessment or visit our display G-Flat™ to see the finishes in person.