Tiny Home Regulations in New South Wales
NSW has three regulatory tracks for tiny homes: THOW under Clause 77, secondary dwellings via Housing SEPP, and primary dwellings requiring full DA.
Key Facts — NSW
Overview
New South Wales has three distinct regulatory tracks for tiny homes, and understanding which one applies to you is the single most important first step. Many people get confused because the rules for a tiny home on wheels are completely different from the rules for a granny flat or secondary dwelling, which are again different from building a tiny home as your primary residence.
This guide separates the three tracks clearly so you can identify your situation and understand what’s required.
Disclaimer: This guide is for general informational purposes only and does not constitute legal, planning or building advice. Regulations change frequently and vary between council areas. Always verify current requirements with your local council before proceeding.
Track 1: Tiny Home on Wheels (Clause 77)
If your tiny home is on a registered trailer — a THOW — the key legislation is Clause 77 of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021.
Clause 77 provides two separate exemptions from council approval. These are commonly confused, so read carefully:
Exemption A: One caravan, long-term, household member
You do not need council approval to install one caravan on your land if all three of these conditions are met:
- There is an existing dwelling on the property
- The caravan is used only by the owner or a member of the owner’s household
- There is only one caravan on the land
This is the pathway that allows a THOW to be occupied long-term on private land without a DA. Note that the law now says “member of the owner’s household” — not just immediate family. This was broadened from the previous wording, meaning adult children, partners, elderly parents, or other household members all qualify.
Exemption B: Short-stay, up to 60 days
A separate exemption allows up to two caravans or tents on land without approval, provided:
- They are not occupied for more than 2 consecutive days
- Total occupation does not exceed 60 days in any 12-month period
This applies to situations like temporary visitors, holiday use, or events — not permanent living.
Which exemption applies to you?
- Want to live in a THOW long-term on someone’s property? → Exemption A (one caravan, household member, existing dwelling)
- Want to park a THOW for weekends or short stays? → Exemption B (max 60 days/year, max 2 consecutive days)
- Want to rent out a THOW commercially on your property? → Neither exemption clearly covers this. There is no explicit law in NSW that prohibits or permits charging rent under Exemption A. Asking for contributions toward utilities is common, but full commercial rental is a legal grey area. Consult your council.
THOW registration
A THOW must be registered as a trailer with Transport for NSW. It must comply with road dimension and weight limits: maximum 2.5m wide, 4.3m high, and 12.5m long, with a maximum towing weight of 4.5 tonnes. For road compliance details, VSB1 Revision 6 sets the safety standards for trailer construction.
Track 2: Secondary Dwelling / Granny Flat (Housing SEPP 2021)
If you want to build a fixed tiny home — on foundations, not on wheels — as a secondary dwelling on an existing residential property, the pathway is the Housing SEPP 2021.
This is the most established pathway and is well-suited to granny flats and secondary dwellings.
Complying development (faster pathway)
A secondary dwelling of up to 60 sqm may be approved as complying development (CDC) if it meets these standards:
- Lot size: At least 450 sqm
- Setbacks: Minimum distances from boundaries and the primary dwelling
- Height: Generally limited to 8.5m
- Car parking: One additional space may be required
- Services: Must connect to reticulated water, sewer (or approved on-site system) and electricity
CDC is assessed by an accredited certifier (private certifier) rather than going through a full DA with council. This is typically faster and cheaper.
For full details, see the NSW Planning Portal — Secondary Dwellings guide and the Housing Code.
When you need a full DA
If your proposal doesn’t meet the CDC standards — for example, your lot is under 450 sqm, the site has flooding or bushfire overlays, or the dwelling exceeds 60 sqm — you’ll need to lodge a development application with your local council.
Track 3: Primary Dwelling (Full DA)
If you want a tiny home as your only or main residence — not a secondary dwelling on someone else’s property — you generally need full development consent from your local council and compliance with the National Construction Code (NCC).
This applies whether the home is site-built, modular, or factory-built. Key NCC requirements cover structural adequacy, fire safety, access and egress, waterproofing, energy efficiency and amenity.
Some councils are more receptive to tiny primary dwellings than others. Eurobodalla Shire Council has published one of the best council-level explainers in NSW. City of Newcastle and Wagga Wagga Council also provide useful guides.
Things Are Changing: The Shellharbour Pilot
The regulatory landscape in NSW is actively shifting. Shellharbour City Council launched a two-year pilot program allowing mobile tiny homes to be installed on residential blocks without a development application.
The council is submitting a planning proposal to amend its Local Environmental Plan, and if successful, the model could provide a blueprint for other NSW councils. This is worth watching — it represents one of the most progressive approaches to tiny home regulation in Australia.
For the latest on the NSW regulatory landscape, see our article on recent NSW planning framework changes.
Key Contacts & Resources
Primary legislation:
- Clause 77 — Installations not requiring approval (AustLII)
- Housing SEPP 2021 — full text
- NSW Planning Portal — Housing SEPP overview
Government guides:
Industry bodies:
Your local council: Use the NSW Planning Portal to find your council’s planning department and check zoning, overlays, and local policies.
Frequently Asked Questions
Can I put a tiny home on wheels on my property in NSW?
Yes, under Clause 77 of the Local Government Regulation 2021, you can install one caravan (including a THOW) on your property without council approval if there is an existing dwelling on the lot and the caravan is occupied only by the owner or a member of the owner’s household. This is Exemption A — it allows long-term occupation, not just short stays. A separate exemption (Exemption B) allows up to two caravans for no more than 60 days per year. See the full Clause 77 breakdown above.
Do I need a DA for a granny flat in NSW?
Not always. If your lot is at least 450 sqm and the secondary dwelling is under 60 sqm, you can use the complying development pathway under the Housing SEPP 2021 — this is assessed by a private certifier, not council, and is typically faster and cheaper. If your lot is smaller, affected by flooding or bushfire overlays, or the dwelling exceeds 60 sqm, you will need a full development application with your council.
Can I rent out a THOW in NSW?
This is a grey area. Clause 77 allows a household member to live in a caravan on your land, but there is no explicit law that prohibits or permits charging rent. Asking for contributions toward utilities is common practice. Full commercial rental (e.g. Airbnb) may require separate approval depending on your council’s short-term rental accommodation policies. Contact your council for their position before proceeding.
What is the Shellharbour tiny home pilot?
Shellharbour City Council launched a two-year pilot program allowing mobile tiny homes to be installed on residential blocks without a development application. The council is proposing changes to its Local Environmental Plan that could make this permanent. If successful, it could become a model for other NSW councils. It’s the most progressive tiny home policy currently being trialled in NSW.
Does my tiny home need to comply with the Building Code in NSW?
If it’s a fixed dwelling intended for permanent habitation — yes. All permanent dwellings must comply with the National Construction Code (NCC/BCA). If it’s a THOW classified as a caravan under Clause 77, the NCC doesn’t directly apply, but the home should still meet reasonable safety standards. THOWs intended for road transport must comply with VSB1 Revision 6 trailer standards and be registered with Transport for NSW.
How do I find out what my local council allows?
Start with your council’s website — search for “tiny home”, “secondary dwelling”, or “moveable dwelling” in their planning section. The NSW Planning Portal has tools to check zoning and overlays for specific properties. Then call the council’s planning enquiry line and ask specifically about your proposal. Councils like Eurobodalla and Newcastle have published excellent tiny home guides on their websites.
Next Steps
- Identify your track: Are you Track 1 (THOW on someone’s land), Track 2 (secondary dwelling), or Track 3 (primary dwelling)?
- Check site constraints: Look up your property’s zoning, flooding, bushfire and heritage overlays through your council’s online planning tools
- Talk to your council: An informal pre-lodgement discussion with the planning department can save months of effort
- Engage a professional: A building designer or town planner familiar with small dwellings will help navigate the specifics
- Find a builder: Browse our builder directory to find NSW tiny home builders who understand the local approval process