Major Changes to Planning in Victoria

Today the Victorian Government has gazetted Amendment VC253 (Amendment), in relation to ‘small second dwellings’ – the well-publicised ‘granny flat’ component of the Government’s planning reforms.

The change, which introduces, for the first time, the concept of a ‘small second dwelling’, applies to all Victorian planning schemes (and the Building Regulations), and is part of the implementation of Victoria’s Housing Statement: The Decade Ahead 2024–2034.

In most zones, a small second dwelling of up to 60 square metres in size will not require planning permission (provided certain conditions are met). In the Green Wedge Zone (GWZ), Green Wedge A Zone (GWAZ) and Rural Conservation Zone (RCZ), a permit will be required, but previously a second dwelling was not permitted at all. This represents a significant shift with various ramifications.

The strategic justification for this new policy is to meet the need for more housing, and as expressed by the Premier:

‘There will be no restrictions on how a small second home can be used – they can be used flexibly, whether it’s keeping family members closer, providing temporary housing or being rented out for additional income.’

The Amendment seeks to generate positive social effects in terms of addressing housing affordability, increasing housing choice and allowing for more intergenerational living.

To build them, a number of requirements must be met, including:

• The small second dwelling must be the only small second dwelling on the lot – a maximum of two dwellings per lot (the existing dwelling plus the small second dwelling).
• The small second dwelling must have a gross floor area of 60 square metres or less and must include a kitchen sink, food preparation facilities, a bath or shower, and a toilet and wash basin – i.e., be a self-contained residence.
• It is not a shortcut to creating two lots – subdivision is prohibited. The relevant clause states: ‘A permit must not be granted which would allow a separate lot to be created for land containing a small second dwelling.’
• The minimum garden area requirement still applies.
• Under the Building Amendment (Small Second Dwellings) Regulations 2023, a minimum area of 8 square metres of private open space must be provided, along with a clear and unobstructed path from the front street to the small second dwelling.
• A permit is required for a small second dwelling on a lot less than 300 square metres.
• There is no requirement to provide car parking for a small second dwelling as Clause 52.06 (Car Parking) does not apply.
• Further requirements also apply (including, in some cases, the need for a permit) where land is affected by a planning scheme overlay.

Notably, the land use term ‘Dependent person’s unit’ (DPU) has been deleted from planning schemes. Presumably, dependent persons are expected to make use of the small second dwelling provisions instead. This means there is no longer a requirement to prove a dependent relationship, and the building need not be movable. However, the dwelling will be restricted to 60 square metres, whereas previously DPUs could be constructed to any size.

Obviously, it remains to be seen exactly how many of these small second dwellings will be built and how they come to be used.

We can provide advice as to whether your particular circumstances may accommodate a small second dwelling under these changes, and certainly in those zones where a permit is required – GWZ, GWAZ & RCZ – we can assist with the planning permit process.

Alternatively, it may be that the usual process for creating two or more dwellings is more appropriate for a given situation. For more background, refer to case references and DSA links.

The other big unknown is what impacts small second dwellings will have on neighbours, who, in most cases, will have no opportunity to object to their construction. We can provide you with advice about other rights you might have.

Please contact Luke English or Sarah Davison of our Mornington office with any questions about the small second dwelling reform.