Tiny House, Granny Flat or Bed and Breakfast

 

Council's position - July 2025

Following a hearing in March 2025, the Building Appeals Board (BAB) released its decision on Friday 18 July, that in this case, the tiny home is on wheels, can be moved and is a registerable vehicle (caravan) therefore it is not classified as a building as defined in the Building Act 1993.  

Importantly, this decision only relates to building permits and does not change any planning permit requirements. 

The BAB acknowledged Council’s concerns about the safety, amenity, and standards of movable dwellings being used permanently on private land. 

Yarra Ranges has now received two different BAB decisions on the Building Regulations requirements for tiny homes on wheels. 

Council acknowledges the challenges of providing suitable housing and remains committed to addressing this issue.  

In 2024, Council approved its 15-Year Housing Strategy which clearly states that housing is a fundamental human right and essential for people to achieve an adequate standard of living.  

Council understands the challenges with the current housing crisis and why residents want to use a tiny house on wheels or similar alternative solutions such as caravans and mobile dwellings to assist with providing an answer. 

The rules around living in tiny or moveable homes may appear to be just red tape, frustrating and confusing, however Council has a legal and moral obligation to ensure that for those people that choose this option are in locations where it is safe from fire, flood or landslip, is healthy with regards to wastewater disposal and provides suitable accommodation. 

In light of this latest decision, Council are undertaking an in-depth review of the differences in the reasons for all decisions and will review its current position of when a building permit is and is not required for a tiny home on wheels. 

Yarra Ranges is also monitoring other councils’ trials, planning and building permit processes and local law provisions while assessing tiny homes on wheels and second dwellings. 

Within the next 12 months Council will be reviewing and updating the Local Law provisions. This may include changes to the use of caravans and/or tiny homes on wheels for accommodation to assist with the current housing challenges. 

However, when it comes to permanent accommodation a planning permit may still be required even if the Tiny on Home on wheels is moveable and is a vehicle which is registered or legally able to be registered to drive on public roads.   

Given Yarra Ranges’ rural location and risks with bushfires, floods and erosion, it is vital that clear information and definitions be provided to councils and the community to ensure that people are safe in the locations that they place a tiny home on wheels. 

Council takes the housing crisis seriously and continues to advocate to the State Government, the Department of Transport and Planning, and the Victorian Building Authority to ensure clear rules and regulations for safe, lawful, and appropriate housing choices for all Victorians. 


Can I put a tiny house on my property?

Whether a planning permit is required for a ‘tiny house’ will depend on several factors.

This includes the makeup of the tiny house. If the tiny house includes; a kitchen sink, food preparation facilities, a bath or shower, and a toilet and wash basin, it may be considered to be a dwelling. A planning permit may be required for a small second dwelling under the zones and overlays.

If the tiny house is for a dependent person, a planning permit may not be required.

If the tiny house is the only house on the site, it would be considered the main dwelling(Show info) regardless of the size.

If the tiny house does not include all the above-mentioned items, for example it does not have food preparation facilities or toilet, it might not be considered a self-contained dwelling. If this is the case, the tiny house is considered to be an outbuilding, which on most residentially zoned land does not require a permit unless there is an overlay.

A tiny house on wheels is not considered a 'building', due to the being a registered vehicle. A tiny house on wheels may not be permitted. 

It is recommended that you contact the planning department directly about your proposal.


Can I rent out my tiny house or have friends and family come stay?

If the tiny house is not considered to be a self-contained dwelling (i.e. self-contained and contains kitchen sink, food preparation facilities, a bath or shower, and a toilet and wash basin) it may be an outbuilding an additional bedroom for friends and family or as a Bed and Breakfast.

In most circumstances this would not typically require a planning permit.

You may also need a building permit for habitual use. You can check our Do I need a building permit? page for more information.

It is recommended that you contact council about your proposal to ensure the permit requirements can be confirmed.

Can I set up a bed and breakfast?

The common meaning of ‘bed and breakfast’ is different to the definition of a bed and breakfast within the Planning Scheme. A bed and breakfast is defined as:

‘A dwelling used, by a resident of the dwelling, to provide accommodation for persons away from their normal place of residence’.

To be classified as a bed and breakfast:

  • There must be an existing dwelling;
  • The dwelling must have a resident. i.e. you live in the dwelling and rent out a back bedroom or habitable room to a person on holidays.
  • Must not be defined a separate or additional dwelling that (i.e. fully self-contained)

Provided the definition is met, a planning permit is not required in most zones to use the land for a bed and breakfast.

As there are exceptions to, you are encouraged to contact council about your proposal to ensure the permit requirements can be confirmed.

Furthermore, a separate council permit may be required for Short Stay Accommodation under The Public Health and Wellbeing Act 2008.


Can I put a granny flat (dependent person’s unit) on my property?

The Planning Scheme refers to a granny flat as a ‘dependent person’s unit’.

A dependent person’s unit (DPU) is defined as:

‘A movable building on the same lot as an existing dwelling and used to provide accommodation for a person dependent on a resident of the existing dwelling.’

To meet this definition, the building therefore must be:

  • moveable, meaning capable of ‘designed to be moved from place to place on more than one occasion’. The building may be moveable from a modular design or small size which fits on the back of a truck.
  • to provide accommodation only for a person(s) dependent on you. This may be your elderly parents or vulnerable person that is dependent on you.

If the criteria are not met, it is considered a second dwelling and will require a planning permit (Note: In a Green Wedge Zone and Rural Conservation Zone a second dwelling is prohibited).

In most cases under the Yarra Ranges Planning Scheme (except for the Rural Conservation and Green Wedge Zones), a planning permit may not be required for a DPU, provided it is the only DPU on the lot. Note, if your land is located in the Industrial 1 and 2; and Commercial 2 Zone, a DPU is prohibited.

If your land contains Overlays (e.g. a Land Subject to Inundation Overlay, Bushfire Management Overlay or Vegetation Protection Overlay) a Planning Permit may still be required.


Do I need a Building Permit for a granny flat (dependent person’s unit)?

As a Building Permit will be required for a DPU, you will need to consult with a registered Private Building Surveyor to ensure works comply with legal requirements and to issue a building permit for you. The Victorian Building Authoritywebsiteprovides information on how to appoint a surveyor as well as aregisterof building practitioners to contact.


Impact of transitional arrangement of Dependent Persons Unit expiry on 28 March 2026

The land use term and definition for ‘dependent person’s unit’ was removed from the Victoria planning provisions and all planning schemes by Amendment VC253.

On 3 March 2025, Amendment VC266 made further changes to the Victoria planning provisions and all planning schemes to expand the transitional arrangements until 28 March 2026. Therefore, proposals for dependent person’s units can continue to be lodged up until 28 March 2026.

Any proposal for a dependent person’s unit is subject to the same provisions that applied before Amendment VC253 was gazetted.

Any application for a dependent persons unit that requires a planning permit under the transitional provisions in the planning scheme at Clause 52.04 (Transitional provisions for a dependent person’s unit) must be decided by Council before 28 March 2026.

Any proposals for dependent person’s unit not approved by this date or lodged after this date will not comply with the planning scheme and would be required to be amended to meet the planning scheme definition of a small second dwelling.

Existing, lawful dependent person’s units will remain lawful. They will not need to meet the requirements for a small second dwelling unless the building is being used as a small second dwelling.

Due to these transitional provisions having an expiry date of 28 March 2025, any application for a dependent persons unit must be accompanied by all required plans and reports to facilitate the application assessment.

Any proposals for dependent person’s unit not approved by this date or lodged after this date will not comply with the planning scheme and would be required to be amended to meet the planning scheme definition of a small second dwelling.

Existing, lawful dependent person’s units will remain lawful. They will not need to meet the requirements for a small second dwelling unless the building is being used as a small second dwelling.

Subject to the requirements in the relevant planning scheme, a proposal for a dependent person’s unit may not be able to progress after 28 March 2025.


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