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Granny flat rules in New South Wales
| Planning term | Secondary dwelling[1] |
|---|---|
| Governing policy | State Environmental Planning Policy (Housing) 2021[1] |
| Maximum floor area | 60 m²[2] |
| Minimum lot size | 450 m²[2] |
| Number permitted | One per lot[2] |
| Subdivision | Not permitted under the Housing SEPP[1][2] |
| Fast-track approval | Complying development certificate, in as little as 20 days[3] |
| Average development application | ≈ 70 days[3] |
| *State-level standards only. Local environmental plans and development control plans impose further requirements that vary by council. | |
In New South Wales a granny flat, legally a secondary dwelling under the State Environmental Planning Policy (Housing) 2021, can be up to 60 m² in floor area on a lot of at least 450 m², with one permitted per property, and it cannot be subdivided and sold separately from the main house.[1][2] A design that meets the standards can be approved through a complying development certificate in as little as 20 days, against an average of about 70 days for a development application.[3]
New South Wales does not use the phrase "granny flat" in its planning law. The legal term is secondary dwelling, and the rules sit in the State Environmental Planning Policy (Housing) 2021 — usually shortened to the Housing SEPP.[1] Councils describe a secondary dwelling as self-contained accommodation on the same property as a single existing home, with its own habitable room, kitchen area, bath or shower and toilet, and clothes washing facilities.[2]
Two numbers do most of the work: a maximum floor area of 60 m² and a minimum lot size of 450 m².[2] Meeting them does not guarantee approval, and missing them does not mean the project is dead — it changes which of two approval pathways applies.
What NSW allows §
Wollongong City Council summarises the state-level position as follows: a secondary dwelling sits on the same property as a single existing home of at least 450 m²; it can be inside the existing home, attached to it, or freestanding; it is capped at 60 m² of floor area; only one is permitted per property; and it cannot be subdivided from the main house and sold separately.[2] The NSW Planning Portal adds that for the complying development pathway the secondary dwelling must be established in conjunction with a principal dwelling and must be on the same lot — not an individual lot in a strata plan or community title scheme.[4]
The 60 m² figure is a state default rather than an absolute ceiling. Commercial planning guidance reports that the cap applies unless another planning instrument applying to the land permits more, which makes the local environmental plan worth checking before a design is finalised.[5] The numerical standards themselves are set out in sections 49 to 59 and Schedule 1 of the Housing SEPP.[6]
The Department's own Planning Portal page on granny flats, last updated 30 April 2025, still cites the State Environmental Planning Policy (Affordable Rental Housing) 2009 — the policy the Housing SEPP replaced.[4] The Department's planning-system page points to the Housing SEPP 2021.[1] Where two government pages disagree, the current legislation governs.
The two approval pathways §
| Pathway | Who decides | Published timing | What is assessed |
|---|---|---|---|
| Complying development certificate (CDC) | Council or an accredited private certifier | 20 days[3] | A fixed code check against the Housing SEPP standards — not a merits assessment[7] |
| NSW Housing Pattern Book pathway | Council or private certifier | 10 days[3] | Pre-approved designs only[3] |
| Development application (DA) | Council | ≈ 70 days average[3] | Full merits assessment |
Where the standards are met, a council or accredited certifier can certify the secondary dwelling as complying development without any development application at all.[7] One certificate can cover both the principal dwelling and the secondary dwelling.[1] The Department states that complying development approvals can be issued in as little as 20 days against an average determination time of 70 days for a development application, and puts the potential saving at up to A$15,000 for a house built under complying development.[3]
Builder-published guidance reports certificate fees of roughly A$3,000 to A$5,000 — commercial figures rather than a published fee schedule.[8]
Falling outside the code is not a refusal. It moves the proposal into the development application pathway, where the council assesses it on merit.
Where secondary dwellings are permitted §
Secondary dwellings are allowed in designated residential zones under the Housing SEPP, and some councils also permit them in other zones.[1] Planning-consultancy summaries describe them as permitted in the R1 to R5 residential zones where the local environmental plan already permits a dwelling house.[9]
Rural and village zones vary by council. Dubbo Regional Council, for example, permits secondary dwellings with consent in R1, R2, R5, B4 and RU5, and in the RU1 and RU2 rural zones subject to a specific clause of its local environmental plan.[10] That is a local rule, not a state one — a different council's list will differ. Zoning for a specific property can be checked through the NSW ePlanning Spatial Viewer.[10]
When fast-track approval is not available §
The Housing SEPP pathway is closed to certain sites regardless of design quality.
- Bushfire-prone land
- Additional requirements apply, and land zoned as at risk of ember attack or of exposure to flames from a fire front cannot use complying development at all.[1] The NSW Rural Fire Service publishes the requirements for building in a bushfire area.[11]
- Strata and community title lots
- The secondary dwelling must be on the same lot as the principal dwelling, and an individual lot within a strata plan or community title scheme does not qualify.[4]
- Lots below the size or configuration thresholds
- The 450 m² minimum applies to the complying development pathway.[2][5]
Planning-consultancy summaries report typical complying-development setbacks of 3 m at the rear and 0.9 m to the side for secondary dwellings.[9] These are commercial restatements rather than the legislative text; the controlling numbers are in Schedule 1 of the Housing SEPP and should be read against it.[6]
Prefabricated and transportable secondary dwellings §
A secondary dwelling in NSW can be a prefabricated, manufactured or transportable dwelling. The City of Newcastle notes that where one is used, Part 3 of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2005 applies in addition to the planning approval.[6] This is a separate instrument from the Housing SEPP and is easy to miss when a builder's quote covers only the dwelling itself.
The Building (Approvals and Practitioners) Bill 2026 is set to make NSW the first Australian jurisdiction to define "prefabricated buildings" in law and integrate modern methods of construction into the approvals system.[12] The consequences for secondary dwellings specifically are covered in The NSW Building Bill 2026 and what it changes for prefab.
Costs attached to the approval itself §
Separate from construction, several charges attach to the approval process:
- BASIX certificate — a secondary dwelling is assessed as a new dwelling, and builder-published guidance reports that BASIX compliance is required as part of the approval.[8]
- Certifier fee — reported at roughly A$3,000–$5,000 for a CDC in commercial guidance.[8]
- Developer contributions — levied under section 7.11 of the Environmental Planning and Assessment Act, these may apply to secondary dwellings, and the amount is set by each council's contributions plan.[7] The City of Newcastle also flags infrastructure contributions as payable in some cases.[6]
Because section 7.11 rates are set locally and change, no figure is given here. The council's own contributions plan is the only reliable source for a given address.
Exempt development rules for decks next to a secondary dwelling, and council permits for removing trees, are covered in gardens and outdoor space with a modular home.
Occupation and sequencing §
Where a secondary dwelling is built while the main house is under construction — a situation the Department addressed for disaster recovery — the sequence is: obtain approval for all works, build the granny flat, obtain an occupation certificate for it, build the main house, then obtain a final occupation certificate for all works within five years of the first.[1]
What this page does not cover §
Local development control plans add further requirements — private open space, landscaped area, privacy screening, solar access, stormwater and parking — that differ by council and are not summarised here. Builder-published guidance reports a minimum of 24 m² of private open space per dwelling as a common control, but that is a commercial restatement of local rules, not a state standard.[8] The controlling documents for any specific property are the Housing SEPP, the relevant local environmental plan and the council's development control plan.
Rental of a completed secondary dwelling is covered separately in Can you rent out a granny flat in Australia?.
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References §
- NSW Department of Planning, Housing and Infrastructure — Secondary dwellings (granny flats) — granny flats are permitted in designated residential zones under State Environmental Planning Policy (Housing) 2021; a council or private certifier can issue a single complying development certificate covering both dwellings; a lot covered by the Housing SEPP conditions cannot be subdivided; additional requirements apply on bushfire-prone land, and land at risk of ember attack or flame exposure cannot use complying development; final occupation certificate required within five years of the first. planning.nsw.gov.au/the-planning-system/disaster-recovery/secondary-dwellings-granny-flats
- Wollongong City Council — Granny flats — secondary dwellings are self-contained with a habitable room, kitchen area, bath or shower and toilet, and clothes washing facilities; on the same property as a single existing home with at least 450 m² of land; no more than 60 m² floor area; only one permitted per property; cannot be subdivided from the main house and sold separately. Two approval paths, with complying development often approved in a couple of weeks. wollongong.nsw.gov.au/plan-and-build/building-and-renovating/common-residential-improvements/granny-flats
- NSW Department of Planning, Housing and Infrastructure — Complying development — fast-tracked approvals can be issued in as little as 20 days, or 10 days under the NSW Housing Pattern Book pathway, compared with an average development application determination time of 70 days; stated savings of up to A$15,000 when building a house under complying development. planning.nsw.gov.au/assess-and-regulate/development-assessment/planning-approval-pathways/complying-development
- NSW Planning Portal — Granny Flats — to be certified as complying development a granny flat must be established in conjunction with a principal dwelling, on the same lot (not an individual lot in a strata plan or community title scheme), and within, attached to or separate from the principal dwelling. Page last updated 30 April 2025 and still cites the repealed Affordable Rental Housing SEPP 2009. planningportal.nsw.gov.au/development-and-assessment/planning-approval-pathways/complying-development/granny-flats
- DA Leads Australia — Granny flat rules NSW 2026 — reports that the 60 m² floor area cap applies unless another planning instrument applying to the land allows more, and that a 450 m² minimum lot area applies for the complying development pathway. Commercial guidance. daleads.com.au/blog/granny-flat-rules-nsw-guide
- City of Newcastle — Secondary dwellings — a complying development application must comply with sections 49 to 59 and Schedule 1 of State Environmental Planning Policy (Housing) 2021 plus the local environmental plan zoning table and clauses 4.3, 4.4 and 5.4. A secondary dwelling may be a prefabricated, manufactured or transportable dwelling, in which case Part 3 of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2005 also applies. Infrastructure contributions may be payable. newcastle.nsw.gov.au/development/building-and-construction/building-and-development-information-guides/secondary-dwellings-granny-flats
- Blacktown City Council — Secondary dwellings (granny flats) — councils and accredited certifiers can certify secondary dwellings as complying development without a development application where the development standards in the Housing SEPP are met; developer contributions levied under section 7.11 of the Environmental Planning and Assessment Act may apply to secondary dwellings. blacktown.nsw.gov.au/Plan-build/Stage-1-find-out/Secondary-Dwellings-Granny-Flats
- Buildana — Granny flat rules NSW 2026 — reports complying development certificate costs of about A$3,000–$5,000, a BASIX certificate requirement, and minimum private open space of 24 m² per dwelling. Builder-published commercial guidance, not independent survey data. buildana.com.au/insights/granny-flat-rules-nsw-2026
- Straight Line Planning — Planning-consultancy summary of complying development controls — reports a typical 3 m rear setback and 0.9 m side setback for secondary dwellings, and that secondary dwellings are permitted in residential zones R1 to R5 where the local environmental plan permits a dwelling house. Commercial guidance, not the legislative text. straightlineplanning.com.au/post/complying-development-cdc-sepp-controls-for-residential-development-in-new-south-wales
- Dubbo Regional Council — Secondary dwellings development fact sheet — secondary dwellings permitted with consent in zones R1, R2, R5, B4, RU5, and in RU1 and RU2 subject to section 4.2C of the Dubbo Regional Local Environmental Plan 2022; property zoning can be checked through the NSW ePlanning Spatial Viewer. dubbo.nsw.gov.au/ArticleDocuments/355/Secondary%20Dwelling%20Toolkit%202023.pdf.aspx
- NSW Rural Fire Service — Building in a bush fire area — requirements for development on bushfire-prone land. rfs.nsw.gov.au/plan-and-prepare/building-in-a-bush-fire-area
- NSW Government — New building laws for a new era of approvals and modern methods of construction in NSW — the Building (Approvals and Practitioners) Bill 2026 will make NSW the first Australian jurisdiction to recognise modern methods of construction in law by defining "prefabricated buildings". nsw.gov.au/ministerial-releases/reforms-introduced-supporting-modern-methods-of-construction
Figures are as published by the sources above at their respective dates and are paraphrased summaries, not verbatim reproductions. Verify current pricing and rules directly with builders, lenders and planning authorities.