Breaking news · New rules from 15 October 2026
GRANNY FLATS IN VICTORIA CAN NOW BE UP TO 80 m²
Victoria has raised the maximum size of a small second dwelling (granny flat) from 60 m² to 80 m². Amendment VC306 came into effect on 15 October 2026.
- 33% more room: up to 80 m², enough for a genuine two-bedroom layout.
- Measured to the outside of the walls. Attached verandahs, decks, porches and pergolas don’t count towards the 80 m².
- No planning permit in most cases, and the planning requirement for an access pathway has been removed.
- Still the same: one per lot, on the same title as the main home, no reticulated gas, and a building permit is always required.
The 80 m² limit is in the planning rules; the building regulations are being updated to match. Your building surveyor will confirm what applies to your site. Source: Planning Victoria.
Looking to build a granny flat in Melbourne? Whether it’s for family, rental income, or an affordable housing solution, iBuild offers modern, regulation-compliant designs tailored for Victorian properties. Discover why we’re Melbourne’s most trusted name in affordable backyard homes.
No Planning Permit Needed for Eligible SSD
Great news for Melbourne and Victoria homeowners – granny flats are now easier to build than ever before!
Under the new Victorian State Government rules for Small Second Dwellings (SSD), you no longer need a planning permit if your granny flat meets specific criteria.
✅ Requirements for No Planning Permit:
To qualify as an SSD and bypass the planning process, your granny flat must:
- Be 80 square metres or less in floor area
- Be located on the same lot as an existing dwelling
- Be self-contained with a kitchen, bathroom, and toilet
- Be associated with the existing dwelling (not subdivided or separately titled)
- Comply with all building code and siting regulations
These changes simplify and accelerate the construction process, making it more affordable and accessible for homeowners across Melbourne and Victoria.
📣 You can now legally build a granny flat in Melbourne and Victoria for personal use or even rental purposes – without navigating council red tape – if your granny flat meets the criteria.
Kit Homes of 80 sqm or Less
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🛠️ We can Help You Navigate SSD Compliance
At iBuild, we offer Approval Service to help
✅ Confirm whether your site qualifies under SSD rules
✅ Handle all building permits with registered surveyors
✅ Assist with design compliance, setbacks, and site assessments
✅ Offer custom kits that align perfectly with SSD guidelines
📞 Contact us to find out if your property qualifies under the new SSD rules.
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Are you qualified for first home owner grant?
To see if you are eligible or to obtain more information about the First Home Owner Grant, please visit the The First Home Owner Grant Summary Page, and then select VIC.
🟦 Frequently Asked Questions – Granny Flats in Melbourne
Q: Do I need a planning permit to build a granny flat in Melbourne?
A: Not anymore in many cases. Under Victoria’s Small Second Dwelling (SSD) policy, no planning permit is required if your granny flat:
Is 80 m² or less
Is on the same lot as an existing dwelling
Is self-contained
Complies with building and siting regulations
iBuild can assess your site and help you meet these criteria.
Q: Can I rent out my granny flat in Melbourne?
A: Yes! With the SSD reforms, you are allowed to rent out your granny flat to unrelated parties, provided it meets the small second dwelling guidelines.
Q: What's the difference between an SSD and a traditional granny flat?
A: An SSD is a newer classification that allows simplified approval and rental use without a planning permit. Traditional granny flats (known as Dependant Person Units or DPUs) were more restrictive—often limited to family use and required removal when no longer occupied by a dependent.
Q: Do I still need a building permit for a granny flat?
A: Yes. While planning permits may no longer be needed, a building permit is always required to ensure your design complies with the Building Code of Australia.
Q: How long does the process take now?
A: Thanks to SSD regulations, projects can begin much faster, with approvals streamlined and council delays significantly reduced. Some builds can be ready to start in just a few weeks.
Q: Do I still need a building permit for a granny flat?
A: Yes. While planning permits may no longer be needed, a building permit is always required to ensure your design complies with the Building Code of Australia.
Q: How long does the process take now?
A: Thanks to SSD regulations, projects can begin much faster, with approvals streamlined and council delays significantly reduced. Some builds can be ready to start in just a few weeks.
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