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How to get a tiny home, step by step
| The first decision | On wheels or on foundations — they fall under different laws[1] |
|---|---|
| On wheels, owner's land | Household exemption reported for a member of the primary household[2] |
| Guest stays (on wheels) | Reported cap of 2 consecutive days, 60 days a year[2] |
| Hard-plumbing a home on wheels | Reported to remove its moveable dwelling status[2] |
| On foundations | Treated as a secondary dwelling: up to 60 m² on a lot of at least 450 m²[3] |
| Fast-track approval | As little as 20 days; development application average 70 days[4] |
| *Rows citing specialist publishers report the position rather than quote the legislation. | |
A tiny home is not one thing in law. In NSW a building on foundations needs development consent under planning law, while a caravan-style dwelling on wheels is a moveable dwelling governed by the Local Government Act instead.[1] Which side you are on decides almost every later step — approval, who may live in it, how it connects to water, and how it is financed and insured.
So the sequence below starts with that choice, then runs through eight stages with a checklist for each.
The eight stages at a glance §
| Stage | What you are settling | Detailed guide |
|---|---|---|
| 1. Wheels or foundations | Which legal route you are on | On wheels vs fixed |
| 2. Who will live in it, and where | Full-time, family or guests; whose land | Living in a tiny house full-time |
| 3. Check your state and council | What the rules allow on that land | Tiny home rules by state |
| 4. Budget and finance | Price, site costs, how to pay | Tiny home costs by state |
| 5. Services | Water, power, wastewater | Off-grid systems |
| 6. Choose and check a builder | Licence, inclusions, contract | Choosing a prefab builder |
| 7. Approval | Exemption, section 68 or planning approval | Tiny home rules in NSW |
| 8. Delivery, insurance and moving in | Siting, cover, handover | Tiny home insurance |
Stage 1: Wheels or foundations §
Decide this first. A tiny home on wheels can be quicker to place but carries limits on who may live in it and how it is serviced. A tiny home on foundations is a small house, with a small house's approvals.
Checklist:
- Read tiny house on wheels vs fixed.
- Will it ever need to move? If yes, wheels or a transportable home may suit: see how to buy a transportable home, step by step.
- Is it really a granny flat? A fixed tiny home behind a main house is assessed as one: see granny flat vs tiny home.
Stage 2: Who will live in it, and where §
On wheels, NSW guidance reports a household exemption for a single tiny home on owner-occupied land, used by a member of the primary household, with casual guest stays reported as capped at two consecutive days and 60 days a year.[2] That reads as household use, not letting.
Checklist:
- Full-time home, family member, or guests? See living in a tiny house full-time.
- Planning to rent it out or list it for short stays? Read short-stay letting before buying.
- Your own land, someone else's, or a community? See land lease communities and building on rural land.
Stage 3: Check your state and council §
Rules differ by state and are applied by councils. For a fixed tiny home in NSW, the secondary dwelling limits apply: up to 60 m² on a lot of at least 450 m², one per property.[3]
Checklist:
- Your state page: tiny home rules by state.
- Overlays on the land — bushfire, flood, heritage: bushfire attack levels and flood-prone land.
- A phone call or written enquiry to your council, before you pay a deposit.
Stage 4: Budget and finance §
Tiny homes are often harder to finance than houses, especially on wheels, so check finance before choosing a model.
Checklist:
- Prices by state: tiny home costs by state. These are builder-published commercial figures.
- Site preparation, delivery and connections on top of the purchase price: hidden cost checklist.
- Finance options: tiny home finance.
- GST treatment: GST on tiny homes and transportable buildings.
Stage 5: Services §
How the home connects to water and sewer can change its legal status. NSW guidance reports that hard-plumbing a home on wheels into permanent water or sewer networks removes its moveable dwelling status and triggers a section 68 approval.[2] Installing a septic tank or other on-site waste system also generally needs section 68 approval.[5]
Checklist:
- Connected or off-grid? See off-grid systems for tiny homes and service connections.
- If on wheels, agree with a plumber how it connects without becoming a permanent connection, and confirm with the council.
- Wastewater plan approved before delivery.
Stage 6: Choose and check a builder §
For a fixed tiny home built on your land, NSW rules on residential building work apply: a written contract over A$5,000 including GST, a deposit of no more than 10 percent, and Home Building Compensation cover before any deposit on contracts over A$20,000.[6] In NSW the licence search runs by name, licence number or ABN.[7]
Checklist:
- Licence and insurance checked: licence and insurance checks.
- What the price includes — trailer, delivery, connections, stairs, decking: choosing a prefab builder.
- For a home on wheels: the trailer's rating and how it will be registered and towed (not covered by the sources compiled here; ask the builder and your state transport authority).
- The builder directory lists companies by state. Inclusion is not an endorsement and entries have not been independently verified.
Stage 7: Approval §
Which approval applies depends on Stage 1. A home on foundations goes through the planning system; in NSW, a proposal that meets the complying development standards can be approved in as little as 20 days, against an average of 70 days for a development application.[4] Installing a moveable dwelling that is not covered by an exemption generally needs a section 68 approval from council.[5]
Checklist:
- NSW detail: tiny home rules in NSW. Other states: tiny home rules by state.
- If relying on an exemption, get the council's view in writing.
- Energy rating for a fixed home: the 7-star NatHERS rule.
Stage 8: Delivery, insurance and moving in §
Checklist:
- Access for delivery, and level ground or footings ready: delivery, transport and craneage.
- Insurance in place from the day it arrives: tiny home insurance.
- Rates and land tax effects of a second dwelling: rates and land tax.
- A handover inspection before final payment: handover inspections.
Related step-by-step guides §
- How to build a modular home, step by step
- How to build a granny flat, step by step
- How to buy a transportable home, step by step
What is not covered here §
Trailer registration, towing limits and road rules for tiny homes on wheels are not covered by the sources compiled here. Nor is whether NSW home building contract and insurance rules apply when a finished tiny home on wheels is bought as a product rather than built on your land; ask NSW Fair Trading or a solicitor.
Rules for states other than New South Wales are not set out on this page; see the state rules pages. The NSW household exemption and plumbing points are reported by a specialist publisher rather than quoted from the legislation, so confirm the current position with your council.
Sent to info@modularlivingaustralia.com.au and handled by a person. See Privacy.
References §
- Whiteacre — Planning law practice article, November 2024. Development consent under the Environmental Planning and Assessment Act 1979 is required for the erection of a building; moveable dwellings are governed instead by the Local Government Act 1993, and a caravan or manufactured home falls within the definition of a moveable dwelling. Development consent may separately be required for the use of a dwelling. Commercial legal commentary. whiteacre.com.au/tiny-homes-caravans-and-manufactured-homes-in-nsw-planning-law-part-2
- Alternative Housing Australia — Tiny home regulations, Queensland and NSW comparison (revised July 2026). Reports a NSW household exemption allowing a single towable tiny home to be occupied on owner-occupied land without council approval where used by a member of the primary household, with casual guest stays capped at two consecutive days and 60 days per year, and that hard-plumbing a mobile dwelling into permanent water or sewer networks removes its moveable dwelling status and triggers a section 68 approval. Commercial publisher, not the legislative text. alternativehousingaustralia.au/blog/tiny-home-rules-and-regulations-in-queensland/
- Wollongong City Council — Granny flats. A secondary dwelling sits on the same property as a single existing home with at least 450 m² of land, has no more than 60 m² of floor area, and only one is permitted per property. 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, compared with an average development application determination time of 70 days. planning.nsw.gov.au/assess-and-regulate/development-assessment/planning-approval-pathways/complying-development
- NSW Planning Portal — Section 68 approvals. Activities generally requiring approval under section 68 of the Local Government Act include installing a manufactured home, moveable dwelling or associated structures, and installing or altering a waste treatment device or a human waste storage facility such as a septic tank. planningportal.nsw.gov.au/development-and-assessment/additional-approvals-applications/section-68-approvals
- NSW Government (Building Commission NSW) — Contracts for residential building work, last updated 29 April 2026. A written contract is required for residential building work where the price is over A$5,000 including GST; the maximum deposit is 10 percent; contracts over A$20,000 need a Home Building Compensation certificate, and no deposit may be requested before required cover is in place. nsw.gov.au/housing-and-construction/building-or-renovating-a-home/preparing/contracts
- Service NSW — Check a builder or tradesperson licence. The search can be run by name, licence number or ABN. service.nsw.gov.au/transaction/check-a-builder-or-tradesperson-licence
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.