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Granny flats

Ancillary accommodation or a 'granny flat' on an existing property is an option that can be convenient and cost effective for some people.

It can allow families to use their existing land and provide close access whilst still ensuring independence. Granny flats may be an extension to the home or a separate dwelling in the backyard.

Granny flats do not require a property to be subdivided, but planning approval and a building licence is required from the local authority  for construction. Approval is also required from the Water Corporation.

Granny flats can be custom designed or can be purchased as a kit or prefabricated home. They need to be built either by a registered builder or owner-builder.

There are a number of companies in the market that specialise in building granny flats and can manage all drawings, approvals and construction.

If you contributed money or other valuable assets in exchange for your granny flat, Centrelink or the Department of Veterans' Affairs may regard you as having a 'granny flat interest' for the purposes of assessing assets or eligibility for rent assistance.

More information