Council's position on advocating for Tiny Homes – 24 June 2025
Council acknowledges the challenges of providing suitable housing and remains committed to addressing this issue. In 2024, Yarra Ranges Council approved its 15-Year Housing Strategy and sympathises with the current housing crisis and requests from residents to be able to use a Tiny House on Wheels, and similar alternate solutions such as caravans and mobile dwellings to assist with providing a flexible and safe answer for people who are searching for a home.
Council's Housing Strategy identifies the need for State-level policy guidance on defining and considering Tiny Houses on Wheels and similar structures as an alternate housing option and we are currently working on providing clear information on the use and development of Tiny Homes for our community.
We will continue to advocate for a formal Planning Scheme definition for alternate accommodation options. This motion was supported at the Municipal Association of Victoria (MAV) State Conference in May 2025, and MAV is collaborating with relevant councils to develop suggestions for the State to consider.
Council takes the housing crisis seriously and we continue to advocate to the State Government, the Department of Transport and Planning, and the Victorian Building Authority to ensure clear rules and regulations for safe, lawful, and appropriate housing choices for all Victorians.
Yarra Ranges Council is monitoring other councils planning and building permit processes in relation to Small Second Dwellings. Different councils have different land uses and zones that apply. Yarra Ranges is working with experts to ensure our position is sound and continues to advocate for innovative housing solutions to address the housing crisis, ensuring clarity and consistency for all residents, owners, and councils across Victoria.
Planning and Building regulations for Tiny Homes in Yarra Ranges
In December 2023, the Victoria Government introduced new planning legislation allowing property owners to establish a Small Second Dwelling on their land.
Since then it has become clear that tiny homes, caravans, mobile homes, and similar structures used for residential accommodation triggers the need for a planning permit and, in almost all cases, they also need a building permit. For people to obtain a Building Permit they need to engage a Private Building Surveyor.
Yarra Ranges municipality is classed as a Green Wedge Council, has Green Wedge Zones and Rural Conservation Zones and many properties are also in areas of identified risk from bushfire, flooding or landslip. This means that both planning and building permits are required for any structure that is being used for accommodation.
Under building regulations, if a Tiny Home on Wheels is lived in it is then classed as a residence. As a residence it is a 'classifiable' structure under the Building Act 1993 and requires a building permit. A recent Building Appeals Board decision confirmed that a building permit and occupancy permit is required for those using a caravan or tiny home as a residence.
Yarra Ranges Council's Municipal Building Surveyor is responsible for ensuring that any building, structure, or vehicle adapted to be used as a residence across Yarra Ranges complies with the Building Act 1993. Council is also responsible for ensuring all properties comply with the State planning provisions
Compliance
Council ensures the safety of residential locations, considering bushfire, flood, landslip risk, health matters, fire safety, septic tanks, water supply, and impacts on neighbours or the environment. Currently, Council has 17 cases of people living in Tiny Homes where permits are required. Council officers work closely with owners and occupants to explain permit requirements, and assist them to resolve any known breaches whenever possible.
When non-compliant uses are identified, Council's Development Compliance team works with property owners and occupants to bring properties into compliance. Owners or residents must obtain planning permits if required and engage a Private Building Surveyor to obtain a building permit and a Occupancy Permit or a Certificate of Final Inspection for the residence, and a retrospective planning permit if this is also required.
