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Approval pathways for prefabricated and modular homes in New South Wales

From Modular Living Australia — the independent knowledge base Last updated: 8 Oct 2026

NSW approval pathways

Illustrative stock image — not a depiction of any specific builder's product.
Fast-track pathway	Complying development certificate (CDC)[1]
CDC determination	As little as 20 days[1]
Merit pathway	Development application to council[1]
Secondary dwelling CDC	Lot of at least 450 m² required[2][3]
Pattern Book pathway	10 days; separate 2025 code[1][4]
Moveable dwellings	Council approval under s 68, Local Government Act 1993[5]
Lodgement	NSW Planning Portal[5][6]
*Pathways depend on zoning, lot characteristics and the local environmental plan. Confirm with the council or a registered certifier.

In New South Wales a factory-built home uses the same approval pathways as any other dwelling: a complying development certificate, determined in as little as 20 days, or a development application to council.^[1] Eligible NSW Housing Pattern Book designs have a separate pathway that takes 10 days, a secondary dwelling needs a lot of at least 450 m² to be complying development, and a moveable dwelling instead needs council approval under section 68 of the Local Government Act 1993.^{[1][2][3][4][5]}

Building a factory-made home in New South Wales does not use a separate approval system. The same planning and certification framework applies as to any other dwelling, with one addition: where the dwelling is a moveable dwelling rather than a permanent building, a further council approval is required under the Local Government Act 1993.^[5]

Which pathway applies is decided by the land and the design, not by whether the home was built on site or in a factory. This page sets out the pathways as they currently stand.

Complying development or a development application §

New South Wales has two main approval routes for residential building work.

Complying development is a fast-tracked approval that combines planning and construction approval into a single certificate, determined by a council or a registered certifier without a full merit assessment. The Department of Planning states that a complying development certificate can be issued in as little as 20 days, against an average of 70 days for a development application.^[1]

The trade-off is that every development standard must be met. Most standards sit in the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 — the Codes SEPP — and if a proposal falls outside them on any point, the complying development route closes.^[1]

A development application to the council is the merit-assessed alternative. It applies where a proposal does not meet the complying development standards, where the land is excluded, or where the zoning does not permit the fast-track route.^[2]

A third pathway exists but is narrow. The NSW Housing Pattern Book, launched in July 2025, pairs a set of endorsed designs with a ten-day complying development pathway introduced by amendment to the Codes SEPP and available from 30 July 2025.^[1][4] The endorsed designs are terrace, townhouse and manorhouse types. The pathway is tied to those published designs and is a separate 2025 planning measure.^[4]

Secondary dwellings §

Secondary dwellings — commonly called granny flats — are governed by the State Environmental Planning Policy (Housing) 2021, which took over the provisions previously in the Affordable Rental Housing SEPP.^[2]

A principal dwelling and a secondary dwelling can be approved under a single complying development certificate.^[2] For a secondary dwelling attached to or separate from the principal dwelling, complying development requires the general requirements of the Codes SEPP to be met, the land not to fall within the excluded categories, a lot area of at least 450 m², and compliance with the development standards in Schedule 1 of the Housing SEPP.^[3]

Below 450 m², the complying development route is unavailable regardless of whether the secondary dwelling is attached, with one exception: a secondary dwelling located entirely within an existing dwelling house.^[2] Where the threshold is not met, a development application remains available.^[2] State-by-state comparison is in the granny flat rules in New South Wales guide.

Moveable dwellings and the section 68 approval §

This is the step that distinguishes some factory-built housing from conventional construction.

Where the dwelling is a manufactured home, moveable dwelling or relocatable home rather than a building fixed permanently to the land, its installation on land outside a caravan park or manufactured home estate requires a council approval under section 68 of the Local Government Act 1993, unless a council local approvals policy exempts it.^[5] This is separate from, and additional to, the planning approval. Section 68 applications are lodged through the NSW Planning Portal.^[5]

Whether a given product is treated as a moveable dwelling or as a permanent building is a question of fact about the specific design and installation, and it determines whether this step applies at all. Related material is in transportable home rules in New South Wales.

Certification during and after construction §

Where a development application route is used, building work also requires a construction certificate before work starts, and a principal certifier must be appointed. Applications may only be made by a person eligible to appoint a principal certifier, and lodgement is notified through the NSW Planning Portal.^[6]

An occupation certificate authorises occupation or use of the completed building.^[7] Building Commission NSW states that the final inspection before an occupation certificate is issued cannot be delegated by the principal certifier, and that where a partial occupation certificate is issued, an occupation certificate for the whole building must be obtained within five years.^[8]

A complying development certificate carries planning and construction approval together, so a separate construction certificate is not part of that route.^[1] The general sequence, not specific to New South Wales, is set out in the approval process for a modular home, step by step.

Who this affects §

People planning a build

The pathway is determined before the builder is chosen. Lot area, zoning and land exclusions decide whether the 20-day route is open, and a moveable dwelling adds a second council approval.^[1][5]

Manufacturers and suppliers

Whether a product is characterised as a moveable dwelling or a permanent building changes the approval steps the customer must complete, and therefore the timeline quoted to them.^[5]

Builders and contractors

Under the development application route, a construction certificate is required before work starts and a principal certifier must be appointed by the person with the benefit of the consent, not by the builder.^[6]

Certifiers

The final inspection preceding an occupation certificate cannot be delegated, and a partial occupation certificate carries a five-year obligation to obtain one for the whole building.^[8]

Councils

Section 68 approvals for installing moveable dwellings sit with councils and can be exempted by a local approvals policy, so the requirement is not uniform across local government areas.^[5]

What is not covered here §

• Whether a construction certificate is additionally required for a moveable dwelling installation. The council checklist compiled here describes the section 68 approval itself and does not settle this point. Confirm it with the council.
• Local variation. Local environmental plans, development control plans and local approvals policies differ between councils and can change which pathway is available. Only the council or a registered certifier can confirm what applies to a specific address.
• Development contributions, BASIX, bushfire and flood requirements. These attach to particular sites and are not summarised here.
• The 2026 legislation. The Building (Approvals and Practitioners) Act 2026 (NSW) received assent on 14 August 2026 as Act No 26 of 2026. Most provisions await proclamation, and it will change parts of this framework once they commence. It is recorded separately at NSW passes Australia's first regulatory framework for prefabricated buildings.
• Other jurisdictions. This page covers New South Wales only.
• Legal advice. Nothing here is legal or planning advice.

References §