Granny flats for rent under emergency planning changes
HOMEOWNERS will be encouraged to rent out granny flats on their properties after the Queensland Government made emergency planning changes to remove restrictions on people who can live in secondary dwellings.
For the next three years, homeowners will be able to rent secondary dwellings to non-family members.
Deputy Premier and Minister for Planning Steven Miles said in most local government areas currently, only relatives can live in granny flats.
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“Right now, most homeowners can’t rent secondary dwellings, such as granny flats, to anyone other than their immediate family,” he said.
Prior to the changes, unless a homeowner has applied for a development application for a material change of use for dual occupancy with their local council, the granny flat must be occupied by a relative.
By removing restrictions on people who can live in secondary dwellings, the Government expects to house thousands of Queenslanders.
“It just makes sense to allow existing accommodation to be occupied by someone other than a relative to provide more affordable accommodation for Queenslanders,” said Mr Miles.
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“It also allows homeowners to earn rent, helping them meet the increased cost of living.
“We can move people into underutilised granny flats much more quickly than constructing new properties,” he said.
While Queensland’s peak body for the real estate industry, Real Estate Institute of Queensland (REIQ) welcomed the state government’s announcement, REIQ CEO Antonia Mercorella issued a word of warning to homeowners.
“This change only applies to granny flats that previously could only be rented to immediate family, and removes this restriction, development approvals will still need to be sought from local governments for newly constructed granny flats,” Ms Mercorella said.
“We’d also issue a word of warning to homeowners: it’s important to do your research to understand the potential tax implications that this could create, in terms of capital gains tax at the time of the sale, as well as potentially triggering land tax liabilities under recent land tax reforms.”
Ms Mercorella said REIQ is seeking clarification around how the new land tax regime will impact granny flats and the availability of the Principal Place of Residence exemption.
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“We encourage the Queensland government to provide clear education around tax implications for those who are interested in renting their secondary dwelling.
“Equally, it’s important prospective tenants considering renting a granny flat are educated around what their rights are, and particularly, the need for written agreements. For that reason, the REIQ would like to see the state government provide a suggested template agreement for this purpose,” she said.
Mr Miles said the changes would be reviewed after three years to ensure there were no unintended consequences and consider future housing supply.
“Each homeowner will of course need to ensure their secondary dwelling complies with fire and building provisions so accommodation for renters is safe,” he said.
For information about how Mackay Region Planning Scheme 2017 applies to houses, house extensions and granny flats, see this user guide here.
