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HIA has today lodged its submission on Draft Amendment 01-2026 to the State Planning Provisions, which would lift the maximum floor area for secondary residences to 90 square metres.
HIA Executive Director Tasmania, Benjamin Price said, secondary residences, commonly known as granny flats, are one of the most achievable forms of housing Tasmania can deliver right now.
"This is a genuinely positive reform," Mr Price said. "These are low-cost, low-impact homes that can go up fast, and a bigger floor plan means more flexibility for older Tasmanians ageing in place, for families housing a carer or for anyone adding a rental to their block."
HIA wants government to pair the floor area increase with an amendment of site coverage rules, so the extra space is actually usable on the ground in backyards in Tasmania.
"The floor area change is the right call that will ensure the granny flat size increase can be fully realised in the General Residential Zone and other areas where site coverage is currently capped at 50 per cent," Mr Price said.
HIA has also asked government to reconsider wording that would require a secondary residence to be ‘subordinate’ to the main dwelling, not just appurtenant to it.
"Secondary residences are being used for a much broader range of living arrangements than they used to be. We don't want that wording to accidentally narrow things back down," Mr Price said.
"HIA members see far too many examples of unclear definitions resulting in inconsistent interpretations of what should be a straightforward planning outcome."
The submission also welcomes two further clarifications: that a secondary residence is permitted wherever a single dwelling is otherwise allowed, and that no additional car parking is required.
"These changes cut red tape without adding risk. Add the changes we're asking for, and this could be one of the more effective housing reforms Tasmania has put forward recently," Mr Price said.
“The fallout from recent federal changes to housing taxation and investment settings will see Victoria’s home building recovery delayed at least another year,” said HIA Executive Director, Keith Ryan.
Queensland’s housing market remains caught between strong underlying demand for homes and near-term economic conditions that are slowing new residential construction, according to Housing Industry Association Executive Director Queensland, Michael Roberts.
Discover the winners of the 2026 HIA SA Building Women Awards, recognising outstanding leadership, innovation, professionalism and achievement in construction.
The achievements, leadership and contributions of women in the residential building industry were recognised today at the 2026 HIA Hunter Building Women Awards.