Key Facts — ACT
Overview
The Australian Capital Territory is unlike any other jurisdiction in Australia when it comes to planning and development. There are no local councils — the ACT Government handles all planning directly, primarily through the Environment, Planning and Sustainable Development Directorate (EPSDD), now operating under the City and Environment Directorate. This means you deal with one authority rather than navigating council-by-council variation, which can be an advantage.
However, the ACT also operates under a unique Crown leasehold land system — nobody owns freehold land in the Territory. All residential land is leased from the Commonwealth, typically on 99-year terms, and the lease includes a purpose clause that dictates what you can build. This has significant implications for tiny home owners, because what your lease permits matters just as much as what the planning rules allow.
This guide covers the main pathways for tiny homes in the ACT, from tiny homes on wheels to fixed secondary residences and the upcoming reforms that may open new doors.
Disclaimer: This guide is for general informational purposes only and does not constitute legal, planning or building advice. Regulations change frequently. Always verify current requirements with the ACT Planning Authority before proceeding.
The ACT Planning Framework
Planning in the ACT is governed by the Planning and Development Act 2007 and the Territory Plan, which is the ACT’s equivalent of a local environmental plan. The Territory Plan sets out zones, development codes and policies that determine what can be built and where.
Building work is regulated under the Building Act 2004, which requires building approval for most construction projects. Building approvals are managed through Access Canberra and assessed by registered building certifiers against the National Construction Code (NCC).
Key residential zones include:
- RZ1 (Suburban) — The most common zone; permits single dwellings and, on qualifying blocks, secondary residences
- RZ2 (Suburban Core) — Allows higher density, including dual occupancies and low-rise apartments
- RZ3–RZ5 — Progressively higher-density zones
You can check your block’s zone using the ACTMAPi online mapping tool.
The Crown Leasehold System
Unlike every other state and territory, the ACT does not have freehold land. The Territory government owns most residential land and leases it to the public under a Crown lease, typically for 99 years and subject to conditions.
Every Crown lease contains a purpose clause that specifies the permitted use — for example, “residential purposes only.” Critically, some purpose clauses also limit the maximum number of dwellings. A clause stating the land shall be used for “a single unit private dwelling” restricts you to one home. A clause that simply says “residential purposes” without a dwelling number qualifier may allow additional dwellings.
Before planning any tiny home project, you should obtain a copy of your Crown lease from the ACT Land Titles Office and check the purpose clause. If your lease restricts you to a single dwelling, you will need a lease variation to add a secondary residence — and as of July 2025, the lease variation charge for adding a dwelling is $46,000 per dwelling. This is a significant cost that NSW and other freehold-based jurisdictions do not impose.
Secondary Residences (Granny Flats)
The ACT uses the term “secondary residence” for what other states call a granny flat or ancillary dwelling. This is a self-contained dwelling on the same block as a primary residence, subordinate to it in scale. For a broader comparison of these dwelling types, see our guide on tiny homes versus granny flats.
Current Requirements
- Minimum block size: 500 sqm
- Dwelling size: Between 40 sqm and 90 sqm
- Maximum one secondary residence per block
- Plot ratio: Total built area (primary dwelling plus secondary residence) generally cannot exceed 50% of the block in RZ1 zones
- Accessibility: Must comply with Australian Standard AS 4299 (Adaptable Housing — Class C), ensuring the design is adaptable for people with disabilities
- Parking: One additional car parking space must be provided
- Private open space: Must be provided for any tenants
A development application (DA) is required for all secondary residences — they are not exempt development under the current rules. The DA is lodged with EPSDD (now the City and Environment Directorate) through the ACT Planning website. Following DA approval, a building approval (BA) is also required.
Secondary residences cannot be subdivided or sold separately from the primary dwelling. However, they can be rented out, which makes them a viable pathway for tiny home living in the ACT.
Blocks Over 800 sqm — Dual Occupancy
If your block exceeds 800 sqm in an RZ1 zone, the Territory Plan permits dual occupancy — two dwellings that can be unit titled and potentially sold separately. One dwelling must be 120 sqm or less. This is a different (and in some ways more flexible) pathway than a secondary residence, though it involves more complex approval requirements.
Tiny Homes on Wheels (THOWs)
The ACT does not have a clear, specific exemption for long-term THOW occupation equivalent to NSW’s Clause 77. A tiny home on wheels is generally classified as a caravan, and its use on residential land is subject to planning controls.
Unlike NSW, which explicitly permits one caravan on a property with an existing dwelling for household members, the ACT has no equivalent codified exemption. This means:
- Short-term parking of a caravan or THOW on your property is generally tolerated, but there is no published time limit equivalent to Victoria’s 28-day rule
- Long-term habitation of a THOW on residential land likely requires development approval, and may also conflict with your Crown lease purpose clause
- Registration of a THOW as a trailer is handled by Access Canberra, subject to standard national limits: maximum 2.5m wide, 4.3m high, 12.5m long, and 4.5 tonnes
If you want to live in a THOW in the ACT, the honest assessment is that the regulatory pathway is unclear. The safest approach is to contact the ACT Planning Authority directly to discuss your specific proposal. Alternatively, a licensed caravan park or residential park may provide a more straightforward option.
What’s Changing: The Missing Middle Housing Bill 2026
The ACT Government introduced the Planning (Missing Middle Housing) Amendment Bill 2026 as part of its commitment to deliver 30,000 new homes by 2030. If passed, this legislation could significantly improve the pathway for tiny homes in the ACT.
Key proposed changes include:
- Automatic entitlement to build a secondary residence on all single-dwelling Crown leases — removing the need to check whether your lease permits it
- Crown lease variations to add additional dwellings would become exempt development, cutting assessment time from months to approximately 10 days
- Small subdivision and consolidation applications would be reclassified, reducing approval timeframes from 60 to 30–45 working days
Importantly, the bill would not remove the requirement for a development application for the design and siting of the dwelling itself — it streamlines the lease and entitlement side, not the building approval process.
This is worth watching closely. If enacted, it would make secondary residence construction meaningfully easier across Canberra.
Key Contacts and Resources
Legislation:
- Planning and Development Act 2007 (ACT Legislation Register)
- Building Act 2004 (ACT Legislation Register)
- Territory Plan (EPSDD)
Government guides:
- Navigating the Planning System — Secondary Residences (EPSDD)
- Check if you need a DA (EPSDD)
- Building Approvals (EPSDD)
- Crown Leases (EPSDD)
Mapping and zoning:
- ACTMAPi — Check your block’s zone and overlays
Industry bodies:
Frequently Asked Questions
Can I put a tiny home on wheels on my property in the ACT?
The ACT does not have a specific exemption allowing long-term THOW occupation on residential land, unlike NSW’s Clause 77. Short-term parking of a caravan is generally tolerated, but living in a THOW full-time would likely require development approval and may conflict with your Crown lease purpose clause. Contact the ACT Planning Authority to discuss your specific situation before proceeding.
How much does a granny flat cost to approve in the ACT?
Beyond the construction costs, the approval process involves DA and BA fees. The most significant additional cost unique to the ACT is the lease variation charge — if your Crown lease does not already permit a second dwelling, you may face a charge of $46,000 per additional dwelling (as of July 2025). The proposed Missing Middle Housing Bill 2026 aims to make this step exempt, which would remove this cost for qualifying residential leases.
What size can a secondary residence be in the ACT?
A secondary residence must be between 40 sqm and 90 sqm in floor area, and your block must be at least 500 sqm. The total plot ratio (combined footprint of all buildings) generally cannot exceed 50% of the block in RZ1 zones. There is a maximum of one secondary residence per block, and it must comply with AS 4299 (Adaptable Housing — Class C) accessibility standards.
Does the ACT have local councils?
No. The ACT is the only jurisdiction in Australia without local government. All planning, development assessment and building approval functions are handled by the ACT Government — primarily through the City and Environment Directorate (formerly EPSDD) and Access Canberra. This means there is one set of rules across the Territory rather than the council-by-council variation found in NSW and other states.
What is the Crown leasehold system and how does it affect tiny homes?
All residential land in the ACT is leased from the Commonwealth, typically on 99-year terms. Each lease includes a purpose clause specifying what you can build. If your lease restricts you to a single dwelling, you need a lease variation before adding a secondary residence — and that variation currently costs $46,000 per dwelling. Always check your Crown lease before starting any tiny home project in the ACT.
Will the Missing Middle Bill make it easier to build a tiny home in the ACT?
If passed, the Planning (Missing Middle Housing) Amendment Bill 2026 would automatically entitle all single-dwelling Crown leases to include a secondary residence, removing the need for a separate lease variation. Crown lease changes to add dwellings would become exempt development, cutting assessment time to around 10 days. However, you would still need a development application for the design and siting of the dwelling itself. The bill is currently before the ACT Legislative Assembly.
Next Steps
- Check your Crown lease: Obtain a copy from the ACT Land Titles Office and review the purpose clause — this determines whether your lease currently permits a second dwelling
- Confirm your zone: Use ACTMAPi to check your block’s zone, overlays and whether a secondary residence is permitted
- Contact the ACT Planning Authority: Unlike other states, you are dealing with one government body — take advantage of this and discuss your proposal early with EPSDD
- Factor in lease variation costs: If your lease needs varying, budget for the $46,000 charge (or track the Missing Middle Bill’s progress)
- Engage professionals: A building designer or town planner experienced in ACT secondary residences will help navigate the Territory Plan and Crown lease requirements
- Find a builder: Browse our builder directory to find tiny home builders who deliver to the ACT — and note that because Canberra is surrounded by NSW, many NSW-based builders service the region