Why you can't just split it off
Under the R-Codes, a granny flat (an "ancillary dwelling") has to be on the same lot as the main house. The state's R-Codes guidance says subdivision into strata, built-strata or green-title lots to put the granny flat on its own lot isn't permitted. The house and granny flat are treated as two dwellings on one lot.
The only way to subdivide
You can only subdivide if the lot meets the minimum site area for its R-Code, and the result meets all the other R-Codes rules. The two homes are then no longer a house and a granny flat. They become two grouped dwellings or two single houses.
That usually means more than just a title change. Each home has to meet the rules for a full dwelling, which can include things like open space, outdoor living areas and parking.
What this means when you build
- A granny flat is limited to 70 m² and doesn't need a minimum lot size, which makes it easy to approve, but it stays tied to the house.
- If you think you'll want to sell the second home separately one day, check your lot's R-Code and minimum site area first. Building to grouped dwelling rules from the start may make more sense.
- Anyone can live in a granny flat now, including tenants, so renting it out doesn't need subdivision.