Granny flats in Victoria: the rules, and what the bathroom and kitchen cost

What counts as a small second home

The definition is specific, and everything else follows from it:

A dwelling that is 60 square metres or less, with a kitchen, bathroom and toilet, located on the same lot as an existing home.

Note what that means: a studio without a kitchen is not a small second home, and neither is a converted garage without a bathroom. The wet areas are not an optional upgrade — they are part of the definition.

When you don't need a planning permit — and when you still do

Since Amendment VC253 commenced on 14 December 2023, no planning permit is required for a small second home in most residential and rural zones. Amendment VC282 came into operation on 8 September 2025 and refined the controls further.

You do still need a planning permit if:

• the lot is under 300 square metres in certain residential zones, where it is assessed under Clause 54 instead
• a bushfire or flooding overlay applies — these bring the permit requirement back
• a heritage, design and development or neighbourhood character overlay applies and your design does not meet that overlay schedule's conditions. These overlays keep the exemption, but only within the limits the schedule sets — which is why the schedule, not just the overlay, is the thing to read

Overlays are the one to check first, because they are invisible from the street. Your council's planning property report will tell you in about a minute.

You always need a building permit

This is the part people miss. Removing the planning permit did not remove the building permit, and a building permit is required in every case.

That is not bureaucracy for its own sake. The building permit is the process that actually enforces the things that fail expensively later: waterproofing to AS 3740, drainage falls, plumbing compliance certificates for work over $750, electrical safety certificates, structural adequacy and fire separation from the main house.

If someone quotes you a granny flat and does not mention a building permit, that is the end of the conversation.

No gas — and why that changes the kitchen

A small second home cannot connect to reticulated natural gas. The kitchen is all-electric, by law.

In practice that means induction or ceramic electric cooktop, and electric hot water — usually a heat pump unit. That is workable, but it has to be planned rather than discovered, because:

• induction needs a dedicated circuit, and often a switchboard that can carry it
• the hot water unit needs a location, a slab or bracket, and drainage
• an all-electric 60 square metre dwelling is a different electrical load calculation from a bedroom extension, and the electrician needs to know at design stage

Retrofitting a circuit after the plaster is on costs several times what it costs to run it during rough-in.

What it can't do

• It cannot be subdivided or sold separately. It stays on the same title as the main house. It is somewhere for family to live, or rental income — not a second property.
• No car space is required, which is a genuine saving, but check what that does to parking on your street before you commit.
• It is still a full build: slab, frame, roof, services, kitchen, bathroom. The permit change made it easier to approve, not cheaper to build.

What we do, and what we don't

We are not a granny flat builder. We don't pour slabs or put up frames, and we would rather say that plainly than take a deposit and find someone else to do it.

What we do is the bathroom and the kitchen — the two rooms the definition requires, and the two that most often blow a small second home's budget because they are priced last and by someone whose main business is the shell.

If you are building a small second home and want a fixed written price on the wet areas to hand to your builder, or to run alongside them, that is exactly the sort of job we quote. Same terms as any other: free inspection, one itemised price, certified waterproofing to AS 3740, and the certificate handed to you at the end.

And if the real problem is that the main house's bathroom is 40 years old, say so at the inspection. Sometimes the second dwelling is the answer and sometimes it isn't, and we would rather tell you which before you spend the money. Our rundown of the 2026 rule changes works through that comparison.

Questions people ask

How big can a granny flat be in Victoria?

60 square metres or less to qualify as a small second home with the simplified planning pathway. Above that you are into a standard second dwelling and the usual planning permit requirements apply.

Can I rent out a granny flat in Victoria?

Yes. What you cannot do is subdivide it or sell it separately from the main house — it stays on the one title.

Can a granny flat have a gas cooktop?

No. A small second home cannot connect to reticulated natural gas, so the kitchen is all-electric. An induction cooktop is the usual choice and needs its own circuit.

Do I need a permit for a granny flat on a small block?

If the lot is under 300 square metres in certain residential zones, it is assessed under Clause 54 and a planning permit is required. Bushfire and flooding overlays also bring the permit requirement back, and heritage, design and development and neighbourhood character overlays keep the exemption only if the design meets that schedule's conditions. A building permit is required in every case regardless.

What does the bathroom and kitchen cost in a granny flat?

We price them the same way we price any wet area: free site inspection, then one itemised written price covering demolition where relevant, plumbing, electrical, certified waterproofing to AS 3740, tiling, fit-off and rubbish removal. Complete bathrooms start at $19,999 all inclusive and kitchens at $24,999, and a small second home's rooms are usually at the lower end because everything is new work with nothing to demolish.