What is a Small Second Dwelling (SSD)? Victoria's 60m² Rules Explained (2026)

The short answer

A Small Second Dwelling (SSD) is a self-contained home of 60 square metres or less, built on the same lot as an existing house. It must have its own kitchen, bathroom and toilet. In Victoria, since Amendment VC253 came into effect on 14 December 2023, an SSD does not require a planning permit on most residential lots over 300m² — though a building permit is always required. SSDs are often called granny flats, secondary dwellings, or accessory dwelling units (ADUs), and anyone can live in or rent one.

At Prestige Living, every granny flat in our design range — from The 36 through to the Capel Sound — is designed under the 60m² threshold specifically so our clients can take the fastest approval pathway available in Victoria.

The 36- a 36m² Small Second Dwelling, well under Victoria's 60m² threshold.

What officially counts as a Small Second Dwelling in Victoria?

To qualify as an SSD under the Victorian planning provisions, the dwelling must:

•     Have a gross floor area of 60m² or less (measured from the outside of external walls)

•     Sit on the same lot as one existing home — and be the only SSD on that lot

•     Be fully self-contained: a kitchen sink and food preparation facilities, a bath or shower, and a toilet and wash basin

•     Not be connected to reticulated (mains) natural gas — all-electric only

•     Be connected to appropriate water, energy and wastewater services

An SSD cannot be subdivided or sold separately from the main home — it's part of the same property, which is also why it adds value to your existing title rather than complicating it.

Do I need a planning permit?

In most cases, no. Since December 2023, SSDs of 60m² or less no longer need a planning permit in Victoria's main residential zones (Residential Growth, General Residential and Neighbourhood Residential) and most rural zones, provided the lot is over 300m² and the conditions above are met.

There are exceptions. If your property is affected by an overlay — bushfire, flood, heritage, or certain environmental controls — a planning permit may still be required. You can check what applies to your block with a free property report at planning.vic.gov.au, or simply ask us: a site check is the first step of every Prestige Living build, and we confirm your approval pathway before you commit to anything.

What approvals do I still need?

A building permit is always required, no matter the size of the dwelling. The building permit covers siting, setbacks, amenity, safety and energy efficiency requirements. Since May 2024, new dwellings in Victoria must also achieve a 7-star NatHERS energy efficiency rating — a standard every Prestige Living design already meets as part of our Essentials Range inclusions, alongside double-glazed windows as standard.

As a registered builder (Domestic Builder Unlimited), we manage the entire permit process for you — it's part of every turn-key build.

Who can live in an SSD?

Anyone. This is one of the biggest changes in the Victorian rules: there are no restrictions on who occupies a Small Second Dwelling. That means an SSD can be:

•     A home for ageing parents who want independence close to family

•     A first home for adult children trying to get ahead without leaving home

•     A long-term rental generating income from your backyard

•     A guest house, home office or studio

If you rent it out, standard residential tenancy requirements apply — room sizes, facilities and smoke alarms — the same as any other rental home.

Torquay Living Room

What does an SSD cost to build?

Prestige Living turn-key Small Second Dwellings start from $130,000 for The 36, our 1-bedroom entry design. Every build is genuinely turn-key: architectural design, permits, construction and premium finishes, completed in a typical build time of 12–14 weeks. Our full design range — one and two bedroom layouts, all under 60m² — is on our Design Range page, with five interior themes to choose from.

The 36- a 36m² Small Second Dwelling, well under Victoria's 60m² threshold

Frequently Asked Questions

Do granny flats need a planning permit in Victoria?

In most cases, no. Small Second Dwellings of 60m² or less do not require a planning permit on most residential lots over 300m², unless an overlay (such as bushfire, flood or heritage) applies. A building permit is always required.

What is the maximum size of a Small Second Dwelling in Victoria?

60 square metres of gross floor area, measured from the outside of the external walls.

Can I rent out a Small Second Dwelling?

Yes — to anyone. There are no occupancy restrictions on SSDs in Victoria. Standard residential tenancy rules apply if you rent it out.

Can a Small Second Dwelling be sold separately?

No. An SSD cannot be subdivided or sold separately from the main home on the lot.

Can an SSD be connected to gas?

No. Small Second Dwellings must not be connected to reticulated natural gas — they are all-electric homes. All Prestige Living designs include electric hot water systems and 7-star energy efficient design as standard.

How long does a Small Second Dwelling take to build?

A Prestige Living turn-key SSD typically takes 12–14 weeks to build, following design and permits

Does an SSD need a car parking space?

No — the Victorian provisions do not require a car parking space for a Small Second Dwelling.

What's the difference between an SSD and a granny flat?

Nothing, in practice. "Small Second Dwelling" is the official term used in the Victorian planning provisions; granny flat, secondary dwelling and accessory dwelling unit (ADU) all describe the same thing.

Thinking about a Small Second Dwelling on your block? Prestige Living designs and builds luxury turn-key SSDs across Melbourne’s eastern and south-eastern suburbs and the Mornington Peninsula. Explore the Design Range or Get In Touch for a site check.

Thinking about a Small Second Dwelling on your block? Prestige Living designs and builds luxury turn-key SSDs across Melbourne’s eastern and south-eastern suburbs and the Mornington Peninsula. Explore the Design Range or Get In Touch for a site check.