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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 Housing Industry Association (HIA) opposes the proposed minimum tax on discretionary trusts and the associated Excluded Election Trust (EET) regime.
In April 2026 an order requiring primary and secondary parties in road transport contractual chains to review and adjust transport rates fortnightly to recover increased fuel costs was handed down by the FWC. This requirement switched off automatically in the week ending 5 June 2026, when the weekly average national terminal gate diesel price fell below $2.00 per litre but did not revoke the order. HIA breaks down what this means for your business.
HIA supports fair treatment of young workers and recognises the importance of appropriate superannuation coverage. However, HIA opposes the Bill as drafted due to a number of legal and technical issues, primarily the impact on small business builders. Read more about HIA's submission to the Federal Senate's Economic Legislation Committee here.
Tasmania's home builders have marked National Tradies Day by putting the case for a trade career to young Tasmanians, saying the trades offer one of the strongest pathways in the state to secure work, real money from day one, and a career that technology is far more likely to help than replace.