Tiny Home Regulations in NSW, Australia (Revised November 2025)

Tiny homes are transforming living in New South Wales (NSW), offering affordable, sustainable solutions to the housing crisis. Understanding regulations is key to realizing your tiny home dream without legal issues. This guide provides a comprehensive overview of tiny home regulations in NSW, covering tiny homes on wheels and tiny homes on foundations.

We’ll keep this post updated as regulations evolve.

Note: This guide greatly simplifies complex regulations but should not be considered legal advice. Contact your local council to confirm requirements before proceeding.

Regulations for tiny homes on wheels in NSW

Tiny home on wheels (THOWs) are treated as trailers, offering flexibility for temporary or long-term living. Compliance with road and council regulations ensures legality and safety.

Registration requirements

Under the Road Transport Act 2013, tiny homes on wheels must be registered with Roads and Maritime Services (RMS) as trailers, meeting Australian Design Rules (ADRs) for road legality:

• Weight: Up to 4.5 tonnes (4,500 kg)
• Width: 2.5 meters (including wheel guards)
• Height: 4.3 meters
• Length: 12.5 meters (including drawbar)

A standard 7.2-meter tiny home on wheels fits within these limits, allowing you to tow it without extra permits. 

Exceeding the dimensions set by the Australian Design Rules requires an oversized load permit, which can be costly and involve complex transport planning, such as hiring pilot vehicles.

Towing and road transport rules

Towing a tiny home on wheels requires adherence to NSW road rules for safety and compliance. 

Key Towing Rules:

• Vehicle Requirements: Use a vehicle with a towing capacity matching or exceeding the THOW’s weight (e.g., a 4.5-tonne-rated truck for a 4-tonne THOW).
• Licensing: A Class C driver’s license covers towing up to 4.5 tonnes. Heavier THOWs may need an LR or MR license.
• Road Compliance: THOWs must have functional brakes, lights, and reflectors per ADR standards.
• Oversized Loads: THOWs exceeding ADR limits require an oversized load permit from NSW Police and RMS, costing $50–$500, plus pilot vehicles for loads over 3.5m wide or 19m long.
• Towing Restrictions: Oversized loads may face urban peak-hour restrictions (e.g., 7–9 AM, 4–6 PM).

A 7.2-meter THOW can be towed by a 4.5-tonne truck, but a 3-meter-wide THOW needs a permit and two pilot vehicles.

When you need council approval in NSW for tiny homes on wheels

The Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021 outlines when formal approval is required, particularly for long-term or non-exempt uses. 

Approval scenario 1: Using a tiny home on wheels as your only home in NSW 

If you plan to live in a tiny home on wheels full-time on a property without an existing primary dwelling (such as a main house), council approval is required. Unlike setups where a THOW is placed on owner-occupied land with a primary dwelling, using a THOW as the sole residence on vacant land involves submitting a Development Application (DA). This ensures compliance with zoning, safety, and utility requirements, like access to water, sewage, and power.

Example: If you purchase a rural plot and want to live in a THOW without building a main house, you’ll need to file a DA with your local council.

Approval scenario 2: Stays exceeding temporary limits  

For short-term use, Tiny Homes on Wheels can be placed on a property for up to 2 consecutive days per visit or a total of 60 days per year without approval. If occupants stay longer you’ll need council approval. 

This typically involves a DA or permission to classify the property as a caravan park or camping ground, depending on the duration and frequency.  

Classifying as a caravan park or camping ground

Per Clause 9 and Part 3 of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021, use of your tiny home on wheels could exceed the temporary stay limits (2 consecutive days per visit or 60 days per year) if your property is classified as a “caravan park” or “camping ground.”

Operating such a setup requires council approval via a Development Application (DA) under the Environmental Planning and Assessment Act 1979, ensuring compliance with zoning, safety, and utility standards. Below are some examples:

• Drainage: Adequate systems to manage stormwater and prevent flooding, ensuring the site remains safe and habitable.
• Safety Measures: Fire safety provisions, such as access to fire extinguishers, clear emergency exits, and sufficient spacing between THOWs to reduce fire risks.
• Utility standards: Connection to reliable water supply and sewage systems, or approved alternatives like composting toilets, to maintain hygiene and environmental standards.

Contact your local council to confirm specific requirements, as they may vary based on your Local Environmental Plan (LEP).

Approval scenario 3: Multiple tiny homes on wheels for non-exempt uses  

Placing more than one tiny home on wheels for family use or two for short-term stays requires council approval if the purpose falls outside the exemptions. For instance, setting up multiple tiny homes on wheels for a rental business, holiday accommodations, or a tiny home community triggers the need for a DA. This may also involve reclassifying the land as a manufactured home estate or caravan park.

If you want to place three tiny homes on wheels on your property to rent out as short-term holiday stays, you’ll need council approval and possibly a change in land use.

Approval scenario 4: Zoning or land use restrictions  

Even if your tiny home on wheels setup seems exempt, council approval is required if the land’s zoning or planning rules prohibit moveable dwellings. 

Some residential, rural, or environmentally sensitive zones may restrict tiny homes on wheels, necessitating a DA or rezoning application. Check your local council’s Local Environmental Plan (LEP) to confirm whether THOWs are permitted on your property. 

Example: If your land is zoned for environmental conservation, placing a tiny home on wheels there, even for personal use, may require council approval to protect the area.

Navigating the approval process for tiny homes on wheelss in NSW

To get council approval, contact your local council to discuss your tiny home on wheels plans and confirm the application process. Most councils require a Development Application, including details about the tiny home on wheels size, location, utilities, and environmental impact. 

You may also need engineering certifications to prove the tiny home on wheels structural safety. Be aware of application fees, which vary by council, and potential processing times, which can take weeks or months.

Understanding when council approval is needed helps you plan your tiny home on wheels project confidently and avoid legal pitfalls. Always consult your local council early to clarify rules specific to your property.

For complex projects, consider hiring a planning consultant to guide you through the process.

When you don’t need council approval in NSW for tiny homes on wheels

If your tiny home on wheels setup aligns with specific exemptions under the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021, you can use it without needing council approval. 

These exemptions (outlined in Clause 77) provide flexibility for certain scenarios, allowing you to avoid a Development Application (DA) process and complex paperwork.

Here’s a breakdown of the key exception scenarios:

Exception scenario 1: Long-term use on owner-occupied land  

You can place one tiny home on wheels on land you own, provided there’s an existing primary dwelling (like a main house), without needing council approval. This exemption allows the THOW to be occupied by you, the landowner, or anyone registered as part of your household, such as family members or housemates listed at the property’s address.

There’s no time limit, meaning the THOW can be used indefinitely as long as it’s kept safe, structurally sound, and hygienic. 

Example: If you own a home and place a tiny home on wheels in your backyard for your adult child to live in long-term, no council approval is needed, provided the unit is well-maintained.

Exception scenario 2: Short-term stays for guests  

For temporary use, you can host up to two tiny homes on wheels (or other moveable dwellings like tents) on your property without council approval, as long as stays are limited to 2 consecutive days per visit or a total of 60 days per year across multiple visits.

This exemption is perfect for accommodating friends, guests, or seasonal workers.

Example: You could let a friend stay in a THOW for a 2-day weekend or allow workers to use two THOWs during a 6-week harvest, as long as the total usage stays under 60 days annually.

Wait a minute, so you’re telling me that if I have a friend that wants to stay in my tiny home on wheels in my backyard for the weekend (2 days) I won’t need council approval, but for the long weekend (3 days total), I’d need council approval?

Unfortunately, that seems to be the case. 

Is it a stupid rule?

Absolutely.

But as tiny home living becomes more popular, NSW councils are likely to remove, or at least significantly tone down stupid restrictions like this, so stay tuned! In the meantime, the best way to bypass this restriction is to classify your property as a caravan park or camping ground.

Exception scenario 3: Special circumstances 

Additional exemptions apply in specific cases. For instance, tiny homes on wheels can be used without council approval on agricultural or pastoral land to house seasonal workers, such as fruit pickers during a harvest.

Similarly, those displaced by natural disasters (e.g., floods or bushfires) can use THOWs as temporary homes for up to 2 years, with possible extensions, without needing a DA.  

Example: A farmer could place a THOW on their property for harvest workers, or a family affected by a bushfire could live in a THOW on their land during rebuilding, both without council approval.

Key considerations  

To qualify for these exemptions, ensure your tiny home on wheels complies with safety and maintenance standards, and confirm that your land’s zoning permits moveable dwellings (check your local council’s Local Environmental Plan). 

If your plans fall outside these exemptions – such as using a tiny home on wheels as your only home or exceeding stay limits – you’ll need to seek council approval, as outlined earlier.

Use this directory to find the contact details of your local council.

Whenever you’re in doubt, a quick call to your local council can clarify what’s allowed.

Regulations for tiny homes on foundations in NSW

Tiny homes on foundations, treated as secondary dwellings under the State Environmental Planning Policy (Housing) 2021, follow a structured approval process. You’ll need a Development Application (DA) or Complying Development Certificate (CDC) from your local council to ensure your tiny home on foundations meets zoning, planning, and safety rules.

Using a tiny home on foundations as a primary dwelling in NSW

Fixed tiny homes on foundations are regulated as permanent structures and can be used as primary dwellings (the main residence on a property) in NSW — subject to zoning, local council approval, and specific conditions.

Here are some important rules to be aware of:

Zoning rules

Tiny homes on foundations are permitted as primary dwellings in NSW in zones where single dwellings are allowed, primarily under Local Environmental Plans (LEPs) and the State Environmental Planning Policy (Housing) 2021:

• Residential zones: This is the most common zone for urban and suburban areas. A single dwelling is allowed with development consent; complying development is possible for lots meeting size thresholds (typically ≥450 m² in standard zones) under the Housing Code, avoiding a full development application (DA) if standards like setbacks are met. For smaller lots, a DA is required to assess impacts like neighbourhood character, as guided by the Apartment Design Guide (where applicable for low-rise forms).
  • Rural zones: Permitted, but often subject to minimum lot sizes (e.g., 40 hectares in some LEPs) and additional considerations for agricultural land protection. On-site systems like septic tanks may be mandatory due to limited infrastructure.

Overlays and variations: Environmental, heritage, or bushfire overlays can impose extra rules, such as higher fire resistance standards under Planning for Bush Fire Protection 2019. Check your property’s specifics via the NSW Planning Portal (planningportal.nsw.gov.au/spatialviewer) to identify any restrictions.

Example: A 50 m² tiny home on a 500 m² lot in an R1 zone without overlays can proceed as a primary dwelling via complying development under the Housing Code, focusing only on building compliance if standards are met.

Council approval and planning permits

Even if you meet zoning rules, development consent (via DA or complying development certificate – CDC) is generally needed for construction unless exemptions apply.

• When it’s required: For designs deviating from standards like setbacks or height limits, or on lots below complying thresholds (e.g., <450 m² in residential zones). A full DA assesses impacts under section 4.15 of the Environmental Planning and Assessment Act 1979.
• Exemptions: No DA needed for complying development on qualifying lots under the Housing SEPP, promoting housing affordability, as noted in state guidelines.

Good to know:

• You still don’t need a full DA to build one house (including a tiny home) on a lot meeting the Housing Code standards in residential zones.
• If your project is small and simple, you can use complying development – a fast-track system that can approve your plans in ~20 days via a private certifier.

Building standards

All fixed tiny homes in NSW must comply with the Building Code of Australia (BCA, part of the National Construction Code) as Class 1a buildings (single dwellings). Key requirements include:

• Structural integrity: Designed to withstand local conditions like wind and soil type, per Australian Standards (e.g., AS 1170 for loads and AS 2870 for foundations).
• Fire safety: Installation of smoke alarms, fire-resistant materials (e.g., near boundaries), and egress paths, as outlined in BCA Volume 2.
• Energy efficiency: A minimum 6-star NatHERS rating (or equivalent BASIX certificate), achieved through insulation, glazing, and orientation.
• Accessibility and other features: Basic provisions for adaptable living, such as wider doorways in some cases.

A building permit (or CDC incorporating building approval) from a registered certifier is always required, ensuring inspections at key stages. The NSW Department of Customer Service oversees this via the Building Commission.

Utilities and environmental rules

• Connections: Must include approved water, sewer, electricity, and access (e.g., driveways) under section 68 of the Local Government Act 1993. Off-grid systems are allowed with council approval.
• Off-grid systems: Permitted with local council and EPA approval under the Protection of the Environment Operations Act 1997. For example, composting toilets or rainwater tanks need waste management plans; septic systems must meet AS 1547 standards and obtain an EPA permit.
  • Rural focus: In areas without mains services, on-site wastewater treatment is common, with rules emphasizing environmental protection.

Example: In a rural RU1 zone, a tiny home as a primary dwelling might use a septic system (EPA-approved) and solar power, with a BASIX certificate confirming sustainability compliance.

Using a tiny home on foundations as a secondary dwelling in NSW

Tiny homes on foundations used as secondary dwellings (often called granny flats) are self-contained units of 60 m² or less, located on the same lot as an existing primary home.

The State Environmental Planning Policy (Housing) 2021 now formally defines a secondary dwelling in Chapter 3, Part 1 as:

A self-contained dwelling that is smaller than the principal dwelling on the same lot, with a maximum floor area of 60 square metres (or as permitted by another environmental planning instrument), and used as a separate residence, which must include:

• kitchen facilities
• a bath or shower
• a toilet and washbasin.

This replaced provisions in the former State Environmental Planning Policy (Affordable Rental Housing) 2009, meaning secondary dwellings can now be occupied by anyone — family, friends, or unrelated tenants — without restrictions on relationships.

Here are some important rules to be aware of:

Zoning rules

According to the State Environmental Planning Policy (Housing) 2021, secondary dwellings are permitted in most zones where residential development is allowed, provided they support the existing primary home without creating a separate lot.

• Residential zones: Allowed on lots with an existing dwelling. No development consent is needed for complying development on lots ≥450m², as long as no special overlays apply. For lots under 450m², a development application is required, with assessment under local development control plans (DCPs).
• Rural zones: Generally permitted, but may face restrictions on minimum lot sizes or agricultural impacts. On-site services like septic systems are often required due to limited infrastructure.
• Overlays and restrictions: Environmental (e.g., bushfire or flooding), heritage, or other overlays can trigger additional rules, such as enhanced fire resistance or site assessments. Use the NSW Planning Portal to check your property for these.

Council variations: Local environmental plans and DCPs can only make rules more permissive than state standards (e.g., allowing higher site coverage); stricter variations are not permitted under the Housing SEPP.

Example: On a 500 m² lot in an R1 zone without overlays, you can add a 50 m² backyard tiny home as a secondary dwelling via complying development, but it must meet building standards.

Council approval and planning permits

A Complying Development Certificate (CDC) or Development Application (DA) is always mandatory for secondary dwellings in NSW, issued by a council or private accredited certifier to ensure compliance with siting, design, and safety. 

Planning approval depends on lot size and zone.

• When a DA is required: For lots under 450m² in residential zones, or if overlays/special controls apply. Applications are assessed under section 4.15 of the Environmental Planning and Assessment Act 1979, which includes merit-based pathways — if your design meets all standards, approval is more straightforward.
  • Other works such as earthworks, tree removal, water tanks, decks, or permanent service connections can independently trigger a DA or building approval.
• Exemptions: No DA needed for complying development on lots ≥450 m² in standard residential zones without special controls. This reduces red tape for most suburban properties.
• Fast-track options: Eligible low-impact proposals (e.g., compliant with Housing SEPP standards) can use the CDC pathway. Submit via the NSW Planning Portal with site plans, elevations, and a compliance report.
• Process and timelines: For CDCs, fees start at around $1,500; processing takes ~20 days. For DAs, fees vary ($1,000–$5,000+); processing takes 4–12 weeks normally. No transitional rules apply post-2021, but pre-existing approvals under the former Affordable Rental Housing SEPP remain valid.

Example: In Eurobodalla Shire (a progressive council), a 40 m² granny flat on a 400 m² lot requires a DA under local DCP controls, but the Housing SEPP’s complying standards could approve it in ~20 days if setbacks and site coverage are met.

Building standards

All secondary dwellings in NSW must comply with the Building Code of Australia (BCA, part of the National Construction Code) as Class 1a buildings, plus Housing SEPP standards for siting and design where applicable. The 2021 reforms have streamlined these for better liveability and sustainability.

• Siting and setbacks: Front setback minimum 6 m (based on the average of abutting dwellings); side/rear setbacks vary (e.g., 0.9 m minimum side, 3–10 m rear increasing with wall height and lot size); walls on boundaries limited to 10 m length and 3.6 m height.
• Site coverage and permeability: Maximum 50–60% coverage depending on zone (e.g., 50% in R1 General Residential); at least 20% permeable surfaces for water management.
• Private open space: Minimum 25 m² for the main dwelling (with 15 m² secluded); 16 m² for the secondary dwelling. Can include balconies or rooftops if compliant.
• Amenity standards: Overshadowing limited to 50% of neighboring open space between 9 AM–3 PM mid-winter; overlooking protections (e.g., screens for habitable windows); passive surveillance (e.g., windows facing the street).
• Sustainability: Protect solar access for panels and north-facing windows; tree canopy encouragement (via local DCPs); energy efficiency via 6-star NatHERS rating or BASIX certificate.

Fire safety and structure: Smoke alarms, fire-resistant materials (e.g., in bushfire areas), structural integrity per Australian Standards (e.g., AS 1170 for loads).

A certifier reviews these during the approval process, with inspections at stages like foundations and framing.

Utilities and environmental rules

Utilities must support independent living while meeting health and environmental standards.

• Standard connections: Water, sewer, electricity, and access (e.g., shared driveway) approved by providers under section 68 of the Local Government Act 1993. Must include bath or shower, toilet, and washbasin. No specific gas bans, but all-electric options encouraged via BASIX.
• Standard requirements: Kitchen facilities and food preparation areas.
• Off-grid systems: Solar panels, rainwater tanks, or composting toilets permitted with council/EPA approval under the Protection of the Environment Operations Act 1997. Wastewater systems (e.g., septic) must meet AS 1547 and obtain an EPA permit.
• Environmental considerations: Minimize impacts in rural or sensitive areas; comply with local DCP rules for landscaping and tree preservation (e.g., Planning Practice Note equivalents).

Example: An off-grid 55 m² secondary dwelling in a rural Eurobodalla lot could use solar power and a septic system, approved via EPA, with a BASIX certificate confirming sustainability.

Tenancy rules

Secondary dwellings can be occupied by anyone — family, dependents, or tenants — with no restrictions on unrelated persons.

• Residential Tenancies Act 2010: Rentals must provide minimum standards, including habitable room sizes (e.g., bedrooms ≥10 m²), cooking/heating facilities, hot/cold water, secure locks, and interconnected smoke alarms. Leases require bonds and condition reports; short-term rentals (e.g., Airbnb) may need extra council registration under STRA rules.
• Occupancy limits: No specific limits, but must not overcrowd per BCA health rules.

Contact NSW Fair Trading for tenancy agreements and disputes.

These rules make secondary tiny homes a viable option for multigenerational living or rental income, with the Housing SEPP simplifying processes for quicker builds.

Before you sign any contract

Remember, tiny home manufacturers are salespeople, not town planners or certifiers. Never sign a contract or pay a deposit until you have written confirmation from your council (or a planning consultant) that your intended use is permitted.

Once a contract is signed, you may be legally obliged to complete the purchase even if the home cannot be legally placed or lived in on your land.

Progressive council policies for tiny homes in NSW 

Some councils lead with flexible tiny home policies. Contact councils directly for the latest information.

• Shellharbour City: Shellharbour proposed a two-year LEP trial for THOWs as long-term rentals on private properties with existing dwellings. This makes permanent THOW living possible in Shellharbour with council approval, a significant step forward for tiny home enthusiasts.
• Eurobodalla Shire: Streamlined approvals for fixed tiny homes under 60 m² as rentals or family homes, with dedicated online resources and 0.9 m side setbacks. Eurobodalla also provides a dedicated webpage for tiny homes approvals.
• Byron Shire: Permits secondary dwellings in R2 zones without strict time limits for household use, prioritizing affordable housing.
• Central Coast Council: No DA needed for complying granny flats ≥450 m² lots, with flexible rural zone allowances.
• Lismore City Council: Offers $15,000 grants for small housing developments, including granny flats and tiny homes, as part of post-flood recovery and affordable housing initiatives. This supports both fixed and moveable tiny homes in eligible areas.
• Lake Macquarie City Council: Launched a tiny homes trial in June 2025, providing streamlined planning frameworks and financial incentives to encourage affordable and sustainable housing options.

How NSW’s tiny home regulations compare to other states

• Victoria: Allows secondary dwellings up to 60 m² without planning permits on ≥300 m² lots under VPP Clause 32.08 — simpler than NSW’s 450 m² threshold. THOWs limited to 28–60 days unless in pilots (stricter than NSW).
• Queensland (QLD): Fewer zoning restrictions for secondary dwellings; fixed homes need council approval but have streamlined processes in some areas (e.g., Noosa Plan 2020).
• Western Australia (WA): Allows secondary dwellings up to 70 m² with council approval under local schemes, similar to NSW but with more rural flexibility.
• South Australia (SA): Permits secondary dwellings up to 60 m² under Development Regulations 2008; fixed homes need development approval, aligning with NSW.
• Tasmania (TAS): Allows secondary dwellings up to 6 months temporary use with permission under Land Use Planning and Approvals Act 1993 — less permanent than NSW.
• Australian Capital Territory (ACT): Permits secondary dwellings up to 12 months with temporary consents under Planning and Development Act 2007.
• Northern Territory (NT): Minimal regulations for secondary dwellings under Building Act 1993; simpler in remote areas than urban NSW.
• Verdict: NSW’s CDC pathway for secondary dwellings (via Housing SEPP) is efficient, but lot size thresholds (450 m²) are stricter than Victoria’s (300 m²); THOW limits (60 days) are more permissive than Victoria but align with SA and ACT.

What’s next for tiny home regulations in NSW?

While the Housing SEPP 2021 focused on diverse housing including secondary dwellings, separate advocacy continues for broader reforms. Key developments to watch include the possible statewide expansion of Shellharbour’s pilot program (set to end December 2026), ongoing lobbying by the NSW Farmers Association, and potential new clauses in the NSW Housing Strategy 2026–2030.

No formal public exhibition for secondary dwelling changes has been announced as of November 2025, but the Committee on Rural Housing Second Dwelling Reform’s report (due February 2026) and council-level pilots are building momentum for 2026–27 updates to rural zoning.

FAQs about tiny homes in NSW

What permits do I need for a tiny house in NSW?

Fixed tiny homes need a CDC or DA + building approval (exempt from full DA for ≤60 m² on lots ≥450 m² in residential zones, per Housing SEPP). THOWs may need DAs for long-term use or vacant land, depending on council rules.

Can I live in a tiny house full-time in NSW?

Yes, if it meets zoning and building codes. Fixed secondary dwellings are easier for full-time use; THOWs face time limits (≤60 days) unless on owner-occupied land with a primary dwelling.

Do mobile tiny homes need a building permit?

Yes, if used as permanent residences to meet BCA safety standards. Temporary THOWs may be exempt if removable and compliant with road rules.

Are there zoning restrictions for tiny homes?

Yes, residential zones (R1–R5) allow fixed secondary dwellings (Housing SEPP); rural zones may require on-site sewage. THOWs face stricter rules unless in pilot programs.

Can I rent out my tiny home?

Yes, but rentals must comply with the Residential Tenancies Act 2010 for room sizes, facilities, and smoke alarms. Short-term rentals may need additional STRA registration.

What about off-grid tiny homes?

Off-grid systems (e.g., composting toilets, solar panels) need council-approved waste management plans under the Protection of the Environment Operations Act 1997 to ensure environmental and health compliance.

Will my secondary dwelling in NSW be rated separately by council?

An approved secondary dwelling will usually be rated separately by council, increasing your ongoing rates bill. It may also have capital-gains-tax implications. Consult your accountant before proceeding.