Victoria’s granny flat reforms kick in

The Victorian government’s reforms, announced last month, have been put into action through alterations in planning schemes and building regulations.

They form a pivotal component of the Labor government’s broader Housing Statement, with the aim of constructing 800,000 homes in collaboration with the housing industry over the next decade to address housing supply challenges.

Under these reforms, individuals can now build a small second home up to 60 square metres through a swift and simplified process, exempt from needing a planning permit if their properties are 300 square metres or larger.

This dwelling can accommodate anyone – family, friends, or renters – provided that the lot is not affected by environmental or flooding overlays.

However, applicants must still obtain a building permit.

Minister for Planning Sonya Kilkenny highlighted that these reforms will expand affordable housing options for Victorians in desired areas by removing the hurdles of obtaining planning approvals, which have long hindered the construction of small second homes.

“More than 700,000 homes across Victoria are eligible for a small second home – we’re making it easier for more Victorians to live where they want to live and close to family,” Ms Kilkenny said.

According to analysis conducted by the Department of Transport and Planning, approximately 700,000 lots measuring 300 square metres or more in residential zones across the state and roughly 2,450 in rural zones are eligible for constructing a small second home – all without overlays.

This initiative aims to provide families with the space to grow together, offer lodging for weekend visits, or even generate additional income by renting out the space to cope with the escalating cost of living.

Housing reforms

Indeed, housing reforms are taking centre stage as Australians grapple with the pressing challenges of the housing crisis and the increasing cost of living.

Both state and federal governments have made commitments to introduce new reforms aimed at making housing more affordable.

In South Australia, recent reforms in residential tenancy laws will introduce specific grounds for terminating or refusing to renew a tenancy agreement.

According to Andrea Michaels MP, this marked the most extensive overhaul of the state’s rental laws since the inception of the Residential Tenancies Act in 1995.

These reforms primarily aim to bolster tenant security, particularly in the face of historically low vacancy rates, while also ensuring the protection of landlords’ rights.

Meanwhile, in Western Australia, landlords are poised to receive a $10,000 incentive to transition their Airbnb properties into long-term rentals.

This initiative is complemented by the state’s decision to enforce the registration of all short-term rentals.

These moves followed the recent introduction of a rental relief program designed to aid tenants who are at risk of homelessness.

[Related: Rental reforms complicate investor tenancy terminations]