Why Are So Many Granny Flats in Australia Unapproved ? (and how to fix it)
The Hidden Risks of Skipping Compliance—and How to Avoid Them
Granny flats are a smart way to unlock extra space, support multigenerational living, and increase property value across Australia.
But here’s the catch—a surprising number of granny flats are unapproved.
That means they were built or converted without meeting legal requirements, putting homeowners at serious financial and legal risk.
So why is this happening, and what can you do to avoid becoming another case study in non-compliance?
The Top Reasons Granny Flats Are Built Without Approval
1. Zoning Confusion
Many property owners assume their land is suitable for a secondary dwelling—only to find out their zoning doesn’t allow it. Councils restrict granny flats in certain areas (especially rural or industrial zones), or set limits on floor size, height, and location on the lot.
2. Building Code Violations
Granny flats must comply with the National Construction Code (NCC). If the structure lacks adequate fire safety, waterproofing, structural integrity, or compliant plumbing and electrical systems, it’s not legally habitable—even if it looks the part.
3. Setback and Boundary Breaches
Local planning rules often specify how far your granny flat needs to be from property lines or other buildings. If these setbacks aren’t followed, expect potential complaints from neighbours—and possible council intervention.
4. Skipping the Approval Process
Some owners try to avoid red tape by skipping the official approval process, especially when converting garages or sheds into dwellings. But without a Development Approval (DA) or Complying Development Certificate (CDC), your granny flat isn’t legally recognised.
5. Unlicensed Builders and DIY Builds
Trying to save money with a DIY job or hiring unlicensed contractors might seem tempting—but it’s one of the fastest ways to end up with a non-compliant granny flat. It can also void insurance and cause future legal issues.
What Happens When a Granny Flat Isn’t Approved ?
If you think councils or insurance companies won’t notice, think again. Here are just a few real-world examples of what can go wrong:-
- Demolition Orders: A Sydney homeowner was forced to demolish their granny flat after neighbours complained. It was built too close to the boundary—without approval.
- Massive Fines: A Brisbane property owner was fined over $25,000 for converting a garage into a granny flat without fireproofing or ventilation.
- Property Sale Nightmare: A Melbourne couple had their sale fall through because their granny flat didn’t meet basic height and fire regulations—lowering their home’s value.
- Insurance Rejection: In Perth, a granny flat damaged in a storm was not covered—because it wasn’t approved and didn’t comply with building codes.
How to Get Your Granny Flat Approved (The Right Way)
Here’s what every homeowner should do to stay compliant:-
1. Do Your Research First
Start by visiting your local council’s website. Check if your zoning permits a granny flat, and review any design rules or size restrictions.
2. Hire Qualified Professionals
Architects, town planners, engineers, and licensed builders who know Australian standards will help avoid costly mistakes.
3. Follow the Right Approval Path
There are two legal pathways for approval in Australia:
- Development Approval (DA): Submitted to your local council
- Complying Development Certificate (CDC): Approved by a private certifier if the build meets specific requirements
4. Keep Records and Certificates
Always secure a Construction Certificate and an Occupation Certificate. These documents are critical for resale, insurance, and legal protection.
5. Consider Pre-Approved Designs
Some companies offer council-compliant, pre-approved granny flat designs to fast-track the process.
🚫 What NOT to Do
- ❌ Build without permits to “save money”
- ❌ Use a shed, garage, or container and call it a “granny flat”
- ❌ Forget about stormwater management, soil testing, or utility connections
- ❌ Assume your insurance will cover an unapproved structure
- ❌ Trust verbal reassurances—if it’s not documented, it’s not approved
Thinking About Tiny Homes or Demountables ?
These are rising in popularity as budget-friendly alternatives—but most still require council approval. Even movable structures like tiny homes on wheels or converted shipping containers must meet specific conditions if they’re used as permanent dwellings.
Check whether your local council classifies them as:
- Temporary accommodation (e.g., caravans)
- Fixed secondary dwellings (granny flats)
Conclusion: Compliance Is Always Worth It
While it might seem faster or cheaper to skip council approvals or use an unlicensed builder, the risks far outweigh the rewards.
Whether you’re building a backyard granny flat or investing in a tiny home, doing it by the book protects your property, your finances, and your peace of mind.
So, before you lay the slab or draw up plans, ask the right questions, speak with your council, and invest in compliance—because shortcuts today can lead to very expensive detours tomorrow.
