Recent years have seen a significant market develop for the "Tiny Home" movement, with some people seeking to minimise their building or environmental footprint, their burden of debt, or to simply seek an alternate source of income for their property.
Whatever the reason for seeking to utilise and benefit from the use of a Tiny Home, it is still important to make sure the Tiny Homes are compliant with the Local Planning Scheme and Building Permit regulations.Planning permits may still be required, even if the Tiny Home is considered a registered vehicle (caravan) and exempt from Building Permit. Council Local Laws may enable temporary living in a caravan on an allotment.
Any long term use of a Tiny home, is likely to be considered as a "permanent dwelling" or Second Small Dwelling, despite the Building permit classification possible being expempt. The Planning Assessment and Building Permit Assessment are separate processors, so each must be satisfied if a permit under each process is triggered
The State Government introduced a suite of significant changes to all Planning Schemes across Victoria, that may make the implementation of a "Small Second Dwelling"" on your property exempt from Planning Permit, subject to certain criteria being satisfied. A Small Second Dwelling needs to be located on a lot that is also developed with a Primary Dwelling and the SSD must be <60m² in Footprint.
It is important to read all the Planning Scheme limitations affecting your property, including the Zone and Overlays, as sometimes the Overlay affecting the property and where you wish to site your Tiny Home or SSD, do determine what may or may not be a planning permit trigger. An exemption under the Zone, may have a planning pemrit trigger by a relevant Planning Overlay
The exemptions from Planning Permit introduced by the State Government for a Small Second Dwelling do not apply within the Green Wedge Zone (GWZ) or Rural Conservation Zones (RCZ). Within these rural zones a Planning Permit requirement still applies, as the use of SSD is a Section 2 use (subject to planning permit) under these rural planning zones. GWZ & RCZ are the predominant Rural Zones within Yarra Ranges and many fringe Councils on Melbourne's perimeter suburbs.
All Use for Accomodation withiin the Bushfire Management Overlay (BMO) typically triggers planning permit, and this includes the proposed use of a Tiny Home or SSD for accommodation within the BMO.
The Tiny Home may be considered as the "Primary" Dwelling on the site if the site is vacant, or it may be considered as a Small Second Dwelling, and assessed under the Planning Scheme
The land use term "Small Second Dwelling" has been included within the Planning Scheme land use definitions (clause 73.03), and the former definition of "Dependent Persons Unit" is now removed. This change in definition means that a greater variety of use or tenants can use a Small Second Dwelling subject to criteria being met.
The definition of a Small Second Dwelling is defined in Clause 73.03 of the Planning Schemes as:
" A building with a gross floor area of 60 square metres or less, on the same lot as an existing dwelling and used as a self-contained residence, which must include:
- a kitchen sink
- food preparation facilities;
- a bath or shower; and
- a toilet and wash basin."
Other associated works (Earthworks, tree removal, water tanks, decking etc) associated with a Tiny Home or Small Second Dwelling, could be a planning or building permit trigger, even if the building itself is exempt.
If a planning permit is triggered and a building permit is required, the Building Surveyor won't be able to sign off on any Building Permit until the Planning Permit has been successfully issued.
A Building Permit will always be required for the use and construction of a Small Second Dwelling on your property. Discuss with Draftsperson or Building Surveyor in relation to Tiny Homes, as permanent servicing connections to the Tiny Homes or ancillary works (decks) may be the building permit trigger.
The costs of the build or purchase of a Tiny Home or Small Second Dwelling are not insignificant, so before purchasing or entering a contract for a Tiny Home or SSD for your property, it is highly recommended you discuss your proposal with your local Council or a specialist consultant, to ensure that you can use a Tiny Home or Small Second Dwelling on your property and in the way that you intend to use it. It is recommended to seek any necessary planning & Building permit approvals prior to proceeding with any purchase of these moveable/modular Homes.
Remember that the representatives of Tiny Home or Small Second Dwelling manufacturers are sales people. They are not Town Planners, and they are not Building Surveyors, so may not be the best people to advise on what permits you require for your project. Once a contract of sale is signed, then you may have legal obligations to proceed with the purchase of the Tiny Home or SSD, irrespective of whether it can be used on the lot in the way that you intended.
The successful addition of a Tiny Home or Small Second Dwelling may also result in potential tax implications to your property. It is also recommended advice and consultation with your accountant be sought, so that any tax implications (ie. Capital Gains) are considered as part of your decision making.
An approved Tiny Home or Small Second Dwelling will also likely to be rated separately by your local Council once approved and constructed, resulting in additional ongoing Council rates costs for your property.
Tiny Homes and Small Second Dwellings are not as straightforward as the information on the internet suggests. Do appropriate 'Due Diligence', and seek expert help from Council or specialist consultants to ensure your decisions have a sound basis. Costs of non-compliance can be very costly. The Yarra Ranges website highlights some of this complexity (July 2025), and different Councils have differing interpretations.
https://www.yarraranges.vic.gov.au/Our-services/Planning-building-and-development/Planning/Research-before-you-apply/Answers-to-common-application-questions/Tiny-House-Granny-Flat-or-Bed-and-Breakfast
The team at Thomas & George P/L can assist with any surveys of the site to assist with Town Planning (if required) or Building Permit application. Please call our Lilydale office should you require any assistance.
