Say Yes! Build a granny flat on your Tasmanian property now

Posted on May 31, 2022

Act now ‘Say Yes, Build a Granny Flat in my Backyard’, to take advantage of the Ancillary Dwelling Grant on offer till the end of June in Tasmania

The Tasmanian Liberal Government currently has an innovative grant to help house more people in Tasmania to assist in easing the current housing shortage. This is part of a record financial spend into social and affordable housing, and homelessness initiatives.

The Tasmanian Premier is encouraging you to say "Yes, in my backyard” to a granny flat! And offering a fabulous financial incentive to assist known as ‘The Ancillary Dwelling Grants Program’ offering up to $10,000 towards your secondary dwelling. Be quick to lodge your application to build a granny flat or ancillary dwelling now, as the program closes at the end of June 2022. 

What type of granny flat or self contained secondary dwelling can I build in my garden?

The granny flats you can build can be up to a floor area of 60 square metres in size and be added semi detached (sharing a wall with the main home) or detached (free standing) from an existing residence, and must be completely self contained - meaning has it’s own entrance, kitchen and bathroom. Once building is complete it must then be offered to the general rental marketplace for a minimum of two years to stimulate additional housing supply in your area. 

How do I apply for the Ancillary Dwelling Grant in Tasmania?

To apply go to the website for State Growth Tasmania and click on the Grants and Funding Section or click here to the ancillary dwelling grants program page.

What do I need to do to start building a secondary dwelling (granny flat) in my backyard?

It is recommended that you contact your local council to see what local building requirements there may be regarding secondary dwellings.

You can also read the 'Adding Extra Living Quarters to Your Home' brochure explaining the types of secondary dwellings or granny flats you can construct to complement, enhance, and increase value and add income to your current residence.

Wanting to build that granny flat or ancillary dwelling in your backyard?

Here are the frequently asked questions the Tasmanian Government have come across:

What approvals do I need to build a granny flat in my garden?

You may not need local council planning approval if you meet all the development standards for your planning zone. Building and plumbing approval will be required. Please consult with your local council planner for further advice regarding your project.  

Can I use my ancillary dwelling for short stay accommodation?

Yes, if you are using the site as your main place of residence and your home has four or less rentable rooms.

If you intend to let your home out to visitors while you travel or are temporarily absent this also applies. If unsure, talk to your local council about short stay or holiday letting in your area.

Can I build an ancillary dwelling in any land zone?

If the zone permits a dwelling to be built, an ancillary dwelling (granny flat) can also be added.

Can I sell my ancillary dwelling separately to my residence?

No, you can only sell your ancillary dwelling and existing house together.

Will I need extra parking for my granny flat?

If your current residence has 2 or more bedrooms with 2 parking spots, then for any additional sleeping quarters over and above, you do not require additional parking.

Where to start once you decide to build a granny flat or secondary dwelling?

1. Consult your local council and ask to speak to a planner and request a copy of any general documents around building a secondary dwelling;
2. Consult with a granny flat builder in Tasmania or architect draftsperson to see what your home site allows;
3. Research online granny flat builders, small home builders or portable housing. There are some great pre built solutions that can be transported if they meet local council requirements;
4. Speak with your broker or financial planner regarding financing and apply now for the grant;
5. Check with service providers regarding utility connection to the secondary dwelling around fees and installation;
6. Consult your current insurer to see what building insurances they recommend and when leasing; consider landlord insurance to protect your new investment.

Helpful Links

How to apply for your granny flat grant - TAS Government

https://www.stategrowth.tas.gov.au/grants_and_funding_opportunities/grants/ancillary_dwelling_grants_program

Adding Extra Living Quarters TAS Government Brochure

https://www.stategrowth.tas.gov.au/__data/assets/pdf_file/0006/294378/Adding_extra_living_quarters_to_your_home.pdf

Dial Before You Dig

www.1100.com.au

Consumer building information - TAS Government

https://cbos.tas.gov.au/topics/housing/building-renovating/consumer-building-information

Other helpful articles you may like to read about renting out your granny flat

How to list a property on Granny Flat Rental

Building a granny flat? What makes it attractive to tenants

If I rent out my granny-flat do I have to pay capital gains tax, CGT

https://www.grannyflatrental.com.au/furnished-or-un-furnished