---
title: "Victoria’s 80 m² Granny Flat Rule (VC306): What Investors Must Check Before Buying"
description: "From 15 Oct 2026, VC306 lets a Victorian granny flat reach 80 m² with no planning permit on qualifying lots of 300 m²+. What still needs one, and the 60 m² gap."
author: Joey Don
date: 2026-10-21
dateModified: 2026-10-21
language: en-AU
category: Renovation & Development
url: https://premiumrea.com.au/blog/victoria-granny-flat-80m2-vc306-investor-guide
tags: ["VC306", "Clause 73.03", "small second dwelling", "granny flat Victoria", "80 m² granny flat", "building surveyor", "planning permit", "Building Regulations 2018", "pre-purchase due diligence"]
---

# Victoria’s 80 m² Granny Flat Rule (VC306): What Investors Must Check Before Buying

*By Joey Don, Co-Founder & CEO at PremiumRea — 2026-10-21*

> Amendment VC306 raised Victoria’s planning limit for a small second dwelling (granny flat) from 60 m² to 80 m² on 15 October 2026. Which blocks qualify, what still triggers a planning permit, why the Building Regulations still say 60 m², and a 10-step pre-purchase check for investors.

**Quick answer:** Since Amendment VC306 came into operation on 15 October 2026, a Victorian granny flat — a *small second dwelling* in planning terms — can have up to **80 m² total floor area** under Clause 73.03, up from 60 m² under Amendment VC253 [1][2]. In the main residential zones it needs no planning permit on a lot of **300 m² or more**, provided there is no more than one existing dwelling, it is the only small second dwelling, it is not supplied with reticulated natural gas, and no overlay or title restriction says otherwise [4]. A building permit is still required, and the Building Regulations 2018 still define a small second dwelling as no more than 60 m² [5][6].

This guide is for investors deciding whether a particular Melbourne or regional Victorian block can carry an 80 m² second dwelling before they commit to buying it. Every rule below was read against the gazetted VC306 documents, the current Building Regulations and the Building Act on 21 October 2026, and each one carries its clause number so that you, your conveyancer and your building surveyor can check it. It is general information about the rules, not legal, planning or building advice about a specific property.

## What VC306 changed: VC253 vs VC306

Amendment VC306 amends the Victoria Planning Provisions and every planning scheme in the state. It was gazetted, and came into operation, on 15 October 2026 [2]. Its explanatory report describes the core change as increasing the floor area of a small second dwelling “from 60 square metres to 80 square metres” and clarifying how that area is measured [3]. Side by side:

- **Planning size limit (Clause 73.03).** VC253 (14 December 2023 – 14 October 2026): 60 m² gross floor area. VC306 (from 15 October 2026): 80 m² total floor area.
- **How the area is measured.** VC253: gross floor area. VC306: all floors used as the self-contained residence, measured from the outside surface of the external walls or the centre of a party wall; attached decks, verandahs, pergolas, porches, patios and terraces are excluded.
- **Lot size without a planning permit.** 300 m² or more under both — unchanged.
- **Section 1 conditions.** No more than one existing dwelling; the only small second dwelling on the lot; no reticulated natural gas — unchanged.
- **Safety and accessibility standard.** VC253: Clause 54.03-5 applied. VC306: Clause 54.03-5 deleted [3].
- **Building Regulations definition (reg 5(1)).** No more than 60 m² under both — the Regulations have not yet been amended [5].

The new definition, word for word:

> “A building, or part of a building, with a total floor area not exceeding 80 square metres, on the same lot as an existing dwelling and used as a self-contained residence, which must include: a) a kitchen sink; b) food preparation facilities; c) a bath or shower; and d) a toilet and wash basin.” — Clause 73.03 [1]

Two practical points follow from the measurement rule. The 80 m² is measured to the outside of the walls, so an 80 m² design has less than 80 m² of internal floor space. And a roofed deck or verandah attached to the dwelling does not count towards the 80 m², while a second floor used as part of the residence does, because the definition counts all floors [1].

## Which lots qualify without a planning permit

Three layers have to line up: the zone, the lot and the title. The General Residential Zone (GRZ, Clause 32.08) is the worked example here. VC306 made matching changes to the small-second-dwelling provisions of the Mixed Use, Township, Residential Growth, Neighbourhood Residential and Housing Choice and Transport zones at the same time [3], and E2ES’s data file lists each zone’s clause numbers [12]. Other zones set their own conditions, so read your zone’s table of uses before assuming any of this applies.

1. **The zone’s Section 1 conditions.** In the GRZ table of uses (Clause 32.08-2) a small second dwelling needs no permit for the use if it meets three conditions: “Must be no more than one dwelling existing on the lot.” “Must be the only small second dwelling on the lot.” “Reticulated natural gas must not be supplied to the building, or part of a building, used for the small second dwelling.” [4]
2. **The lot size.** Clause 32.08-6 still says: “A permit is required to construct or extend a small second dwelling on a lot of less than 300 square metres.” [4] At 300 m² or more that trigger falls away. It is a legal threshold, not evidence that an 80 m² building fits.
3. **The overlays.** Zone and overlay controls apply cumulatively, so an overlay with its own buildings-and-works trigger — heritage, flooding, bushfire, erosion or vegetation, among others — can require a permit even when the zone does not. VC306 itself amended five hazard overlays (Clauses 44.01 and 44.03 to 44.06) [3], so read the current overlay clause rather than guidance written before 15 October 2026. Our [planning overlays guide](/planning-overlays-victoria#granny-flat-killers) lists the overlays that most often stop a second dwelling.
4. **The title.** A planning exemption does not remove anything registered on the title. A restrictive covenant limiting the land to one dwelling, or a Section 173 agreement under the Planning and Environment Act 1987, can still rule out a second dwelling, and easements limit where one can sit [9][10].

One detail many summaries miss: in the GRZ, “Small second dwelling – if the Section 1 condition is not met” is listed in Section 3 — Prohibited [4]. A permit cannot fix that. A lot that already has two dwellings, or a design that connects the second dwelling to reticulated gas, is not a small-second-dwelling project at all. Any second home there would have to be proposed as something else, such as a dwelling on a lot that already has one under Clause 32.08-7, which needs a planning permit and a Clause 55 assessment [4].

## What still needs a planning permit

The 80 m² definition changes what counts as a small second dwelling. It does not remove these triggers:

- **A lot under 300 m².** A permit is required under Clause 32.08-6 and the development must meet Clause 54. The application can be a VicSmart application (Clause 71.06) if the design meets the listed Clause 54 standards: street setback, building height, side and rear setbacks, walls on boundaries, site coverage, tree canopy, the building setback for small second dwellings, daylight to existing windows, existing north-facing windows, overshadowing of secluded open space, overlooking, and overshadowing of domestic solar energy systems [4]. Under Clause 32.08-13 such an application is exempt from the decision requirements of section 64(1), (2) and (3) and the review rights of section 82(1) of the Planning and Environment Act 1987 if all the applicable standards are met [4].
- **An overlay trigger.** Each overlay has its own permit requirement and schedule, and they apply on top of the zone.
- **A zone schedule.** Where a schedule to the zone specifies a requirement different from a Clause 54 standard, the schedule’s requirement applies and must be met (Clause 32.08-6) [4].
- **A different zone.** Outside the main residential zones the small-second-dwelling conditions differ; check the table of uses for the zone shown on the planning property report.

If a block passes these, the next question is not planning at all. It is building.

## The 60–80 m² gap: planning says 80, the building rules still say 60

Planning approval and building approval are separate systems. Section 16(1) of the Building Act 1993 says: “A person must not carry out building work unless a building permit in relation to the work has been issued and is in force under this Act.” [6] Building a small second dwelling is building work, so it needs a building permit whether or not it needs a planning permit.

The Building Regulations 2018 have not caught up with VC306. Version 031 (incorporating amendments as at 1 September 2026, still current on 21 October 2026) defines a small second dwelling in reg 5(1) as “a Class 1a building that is self-contained and has a gross floor area that is equal to or less than 60 m2 on the same allotment as an existing building that is a single Class 1 building that is not a small second dwelling” [5]. The Regulations attach their own siting rules to that definition:

- **Reg 74A — setback.** The small second dwelling must be set back behind the front wall of the existing dwelling that faces the front street.
- **Reg 86A — its own open space.** At least 8 m² of private open space with a minimum dimension of 1.6 m and convenient access from a habitable room other than a bedroom.
- **Reg 86(2)(b) — the house keeps open space.** Unless a zone schedule sets its own figure under reg 86(1), the existing dwelling must keep at least 25 m² of private open space, minimum dimension 3 m, at its side or rear.
- **Reg 86B — access path.** A clear and unobstructed path from the front street at least 1 m wide (1.8 m if the path is longer than 30 m), with 2 m clear height, a gradient no steeper than 1 in 14, a cross fall no steeper than 1 in 40, and a sealed or all-weather surface.
- **Council consent.** A design that does not comply with regs 74A, 86, 86A or 86B needs the report and consent of the relevant council for the building permit [5].

So what happens to a 70 m² or 80 m² design that is a small second dwelling under the planning scheme but not under the Regulations? That is the building surveyor’s call. Planning Victoria’s guidance describes matching Building Regulations and Minister’s Guideline MG-12 amendments as still to come [7]. Until they are in force, ask the registered building surveyor who would issue the permit how a 60–80 m² design will be classified and assessed, and get the answer in writing before you rely on it. A conservative way to screen a block in the meantime is to test it against the siting rules above whatever the final floor area, then let the surveyor confirm the pathway for the actual design.

> “The 80 m² figure is a planning number. Before a client pays for a block on the strength of it, we want three things on paper: a title that does not rule out a second dwelling, a measured layout that fits the access path and open space, and a building surveyor’s view on how a design over 60 m² will be assessed,” says Joey Don, Co-Founder & CEO at PremiumRea.

## Before you buy: a 10-step check for an 80 m² granny flat block

Work through these roughly in order: the early steps cost little and can rule a block out before you pay for the later ones. Keep each answer with its source and date so the file can be handed to your lawyer, designer and building surveyor.

1. **Planning property report.** Download it from VicPlan [8] and record the zone and its schedule (for example GRZ1) and every overlay. Run the address through our [granny flat checker](/tools/granny-flat-checker) as a first screen, not a final answer.
2. **Title and the documents it references.** Order a current title search and the instruments it lists — plan of subdivision, covenants, Section 173 agreements and easements — through LANDATA [9], and have your conveyancer read them. Our [Section 32 guide](/section-32-due-diligence-victoria) and [easement checklist](/blog/easement-property-buying-victoria) cover what to look for.
3. **Lot area from the title plan.** Confirm 300 m² or more from the registered plan, not the listing. Note frontage, depth and any irregular shape: whether a dwelling fits depends on these as much as on area.
4. **Existing dwelling count.** Confirm there is no more than one existing dwelling and no existing small second dwelling. A bungalow or rear unit with its own kitchen needs explaining before you rely on the exemption; ask for its permits and records.
5. **Gas.** The second dwelling must not be supplied with reticulated natural gas [4]. Plan it all-electric and decide early how electricity and water will be metered — see our [utility meters guide](/blog/granny-flat-separate-electricity-water-meters-victoria).
6. **Sewer, stormwater and buried assets.** Ask the local water corporation for the property sewerage plan, lodge a Before You Dig Australia enquiry [11], and check that the house drain and any authority asset sit clear of the proposed footprint.
7. **Construction access.** Measure the route a truck, crane or materials will take, and measure the side path against reg 86B: 1 m clear width and 2 m clear height from the front street [5].
8. **Siting and open space.** Sketch the dwelling behind the front wall of the house (reg 74A) and check that the second dwelling gets 8 m² and the house keeps 25 m² of private open space (regs 86A and 86) [5]. Note trees, slope and neighbouring windows.
9. **A building surveyor’s view on 60–80 m².** For any design over 60 m², get the surveyor’s view on the building pathway before the contract becomes unconditional, and ask your lawyer whether a contract condition is appropriate.
10. **A measured site layout.** A feature-and-level survey and a dimensioned plan showing the footprint, setbacks, open space, path and services. Price the whole project from that plan rather than a brochure — our [granny flat quote guide](/blog/granny-flat-quote-total-project-cost-victoria) lists what a complete quote should cover.

## What VC306 does not change

- **No separate title.** Clause 32.08-3: “A permit must not be granted which would allow a separate lot to be created for land containing a small second dwelling.” [4] A small second dwelling stays on the same lot as the house; it is not a subdivision strategy.
- **Still one of each.** No more than one existing dwelling and only one small second dwelling per lot [4].
- **Still a permit under 300 m².** VC306 left the 300 m² trigger in Clause 32.08-6 in place [4].
- **Overlays and title restrictions still apply**, and a building permit is still required [5][6].
- **The Building Regulations are not amended yet.** Until they are, the 60 m² building definition and its siting rules stay in force [5][7].
- **Commercial screening is a separate question.** When we shortlist blocks for clients we look for more land than the legal threshold; the 550–600 m² figure in our buying strategy is a commercial screening preference, not a legal requirement.

For context on our own record: 212 of the 345 client purchases in PremiumRea’s published dataset (offer dates January 2023 to September 2025) included a granny-flat addition, each decided under the rules in force at the time [13]. That is history, not a forecast of how an 80 m² dwelling will perform. If you are weighing a specific block, our [granny flat investment guide for Victoria](/granny-flat-investment-victoria) covers the wider investment case, and our [due-diligence process](/melbourne-buyers-agent-due-diligence-process) shows how these checks fit into a purchase. Our sister company E2ES publishes the same rule as machine-readable data (JSON and Markdown, CC BY 4.0) [12], and the four-home VicSmart changes are covered in our [VicSmart explainer](/blog/vicsmart-four-homes-ten-day-planning-victoria-2026).

## Questions investors ask about the 80 m² granny flat rule

### Is Victoria’s granny flat limit now 80 m²?

Yes, for planning. Since Amendment VC306 came into operation on 15 October 2026, Clause 73.03 defines a small second dwelling as up to 80 m² total floor area (60 m² under VC253). The Building Regulations 2018 still define it as no more than 60 m², so the building pathway for a 60–80 m² design must be confirmed with a building surveyor.

### Does an 80 m² granny flat need a planning permit?

Not in the main residential zones if the lot is 300 m² or more, there is no more than one existing dwelling, it is the only small second dwelling, it has no reticulated gas, and no overlay or title restriction says otherwise. A lot under 300 m² still needs a permit (Clause 32.08-6 in the General Residential Zone).

### Do decks and verandahs count towards the 80 m²?

No. Clause 73.03 measures total floor area from the outside surface of the external walls (or the centre of a party wall) and excludes attached decks, verandahs, pergolas, porches, patios, terraces and other attached roofed or unroofed structures. Every floor used as the residence counts.

### Does a granny flat that needs no planning permit still need a building permit?

Yes. Section 16(1) of the Building Act 1993 prohibits building work unless a building permit has been issued and is in force. The planning exemption only removes the planning permit.

### What if the lot already has two dwellings or the granny flat is connected to gas?

In the General Residential Zone a small second dwelling that fails a Section 1 condition is listed as prohibited (Clause 32.08-2, Section 3). A second home on that lot would need a different pathway, such as a planning permit under Clause 32.08-7 for a dwelling on a lot that already has one.

### Can the granny flat be subdivided onto its own title later?

No. Clause 32.08-3 says a permit must not be granted which would allow a separate lot to be created for land containing a small second dwelling.

### Can a covenant stop a granny flat that needs no planning permit?

It can. A planning exemption does not remove a restrictive covenant or a Section 173 agreement registered on title, so have your conveyancer or lawyer read the title and its instruments before you buy.

### What should I check before buying a block for an 80 m² granny flat?

The planning property report (zone and overlays), the title and its instruments, the lot area from the title plan, the existing dwelling count, a gas-free services plan, sewer and buried assets, construction access, siting and open space, a building surveyor’s view on any 60–80 m² design, and a measured site layout.

## References

1. [VC306 approved Clause 73.03 — Land use terms (dated 15 October 2026): small second dwelling definition; checked 21 October 2026](https://stfpbsprodapp01.blob.core.windows.net/amendmentfiles/VC306%2073.03%20Land%20Use%20Terms_vpp%20Approval%20Gazetted_d79c4d55-4102-f111-8406-002248102344_d6c86da3-2366-4c12-bb48-669c81af66a7.pdf)
2. [Amendment VC306 — Planning Schemes portal (gazetted; date of operation 15 October 2026); checked 21 October 2026](https://planning-schemes.app.planning.vic.gov.au/Melton/amendments/VC306)
3. [VC306 explanatory report (approval, gazetted); checked 21 October 2026](https://stfpbsprodapp01.blob.core.windows.net/amendmentfiles/VC306%20Explanatory%20Report%20Approval%20Gazetted_d79c4d55-4102-f111-8406-002248102344_157da33f-9984-4b6b-8be7-6049dfc64bba.docx)
4. [VC306 approved Clause 32.08 — General Residential Zone (Clauses 32.08-2, 32.08-3, 32.08-6, 32.08-7 and 32.08-13); checked 21 October 2026](https://stfpbsprodapp01.blob.core.windows.net/amendmentfiles/VC306%2032.08%20General%20Residential%20Zone_vpp%20Approval%20Gazetted_d79c4d55-4102-f111-8406-002248102344_d927f042-0223-449c-adcd-9f862fe75799.pdf)
5. [Building Regulations 2018 (Vic), authorised version 031, incorporating amendments as at 1 September 2026 — regs 5(1), 74A, 86, 86A and 86B; checked 21 October 2026](https://www.legislation.vic.gov.au/in-force/statutory-rules/building-regulations-2018/031)
6. [Building Act 1993 (Vic), authorised version 152, incorporating amendments as at 16 September 2026 — section 16(1); checked 21 October 2026](https://www.legislation.vic.gov.au/in-force/acts/building-act-1993/152)
7. [Planning Victoria — Small second homes guidance (matching Building Regulations and MG-12 amendments described as to follow); checked 17 October 2026](https://www.planning.vic.gov.au/guides-and-resources/strategies-and-initiatives/small-second-dwellings)
8. [Victorian Government — VicPlan planning maps and planning property reports; checked 21 October 2026](https://mapshare.vic.gov.au/vicplan/)
9. [LANDATA (Victorian Land Registry Services) — title searches and registered instruments; checked 21 October 2026](https://www.landata.vic.gov.au/)
10. [Planning and Environment Act 1987 (Vic) — section 173 agreements and planning permits; checked 21 October 2026](https://www.legislation.vic.gov.au/in-force/acts/planning-and-environment-act-1987)
11. [Before You Dig Australia (BYDA) — underground asset enquiries; checked 21 October 2026](https://www.byda.com.au/)
12. [E2ES — Victoria small second dwelling rule as machine-readable data (JSON, CC BY 4.0; also published as .md); checked 21 October 2026](https://e2es.com.au/data/victoria-small-second-dwelling-rule.json)
13. [PremiumRea, 'Melbourne Investment Property Portfolio' open dataset (v1.0.0, Zenodo, DOI 10.5281/zenodo.20095886). n = 345 settlements, offer dates January 2023 to September 2025, of which n = 212 included a granny-flat addition.](https://doi.org/10.5281/zenodo.20095886)

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Source: https://premiumrea.com.au/blog/victoria-granny-flat-80m2-vc306-investor-guide
Publisher: PremiumRea (Optima Real Estate) — Melbourne buyers agent