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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 Hunter region continues to demonstrate the importance of a strong pipeline of residential land and housing approvals, with thirteen local areas meeting HIA’s population and residential building hotspots criteria in 2024/25,” stated HIA Executive Director - Hunter, Craig Jennion.
Tasmania's Zanetto Builders dominated the 2026 HIA Australian GreenSmart Awards, taking home three national titles, including the coveted HIA Australian GreenSmart Home, partnered by Clipsal by Schneider Electric, for the exceptional Bluebush Passivhaus.
The Housing Industry Association has welcomed a Tasmanian Government plan to allow larger secondary residences, or 'granny flats', and is calling for further changes to make sure the reform delivers its full potential.
The Housing Industry Association (HIA) has welcomed the release of the Australian National Audit Office (ANAO) review of the Housing Australia Future Fund (HAFF) and Treasury’s acceptance of all five recommendations - aimed at strengthening the program’s governance, performance measurement and public reporting.