Demystifying Council Fees to Build a Granny Flat : A Complete Guide

If you are thinking about building a granny flat, you really want to consider every dollar that you might have to spend, including Council fees. So, what are the types of Council fees for granny flats? Some common fees are:

• Council Contribution fees
• Development Lodgement Fees
• Fees for Processing Your Lodgement
• Assessment Fees
• Inspection Fees, including Sewer and Water Inspection

Today we will cover these common types of fees that you might have to pay to get approval for your granny flat.

We will talk about where these fees differ, both from state to state, and from Council to Council. Finally, we will discuss whether there is any way to save yourself money on the granny flat fees.

DON'T PAY A FORTUNE FOR YOUR GRANNY FLAT. Find out how to deal with council and build a granny flat for the lowest cost possible.

Common Types of Fees for Granny Flat Approvals

A lot of the Council fees may not make sense to you – they really didn’t to me.

But many of these were costs that I had to pay, there was no escaping them, and depending on your Council, so may you.

We'll discuss some of the common costs that you may have to pay to Council for fees now.

Council Contribution Fees

These fees can vary greatly between Councils, and at times can be eye-wateringly high.

Unfortunately for some, these fees are simply bad luck. If you live in one Council you may not have to pay anything. If you live in the next Council over, you may have to pay over $20,000.

Development Lodgement Fees

To get approval for your granny flat, you will have to submit an application – most of the times this can be done online.

Sometimes, the Council will ask you to pay to submit this, but only in some states of Australia. On a similar note, they may also charge you Fees for Processing Your Lodgement, or Assessment Fees.

To see which states of Australia you have to pay these in, and how much they cost, refer to the sub-heading “Where the Fees May Differ From State to State” below.

Inspection Fees

One common inspection done by Council is for your plumbing and sewerage.

The Council will charge you for this, as they will generally have to come out for 3 inspections:

• Once your trenches have been dug, and your pipes are laid in ground (after connection to Council mains).
• When your rough-in is finished, and the internal pipes are fitted (prior to your walls being plastered).
• Third and last, to make sure everything has been properly completed.

Where the Fees May Differ From State to State

Every state in Australia runs under a different policy for approving their granny flats, which is why the fees differ.

We’ll go into a bit of detail about VIC & NSW, their policy and regulations, and therefore their fees.

Victoria

The guidelines for permits for granny flats are underneath both the Building Act 1993 and the Building Regulations 2018.

This allows the Councils’ to charge you the below fees:

• Planning permit fees – These vary in cost, depending on your local Council. Some Councils do not even require them.
• Lodgement fee – This price will also be determined by your local Council.
• Government levy charges – Your building surveyor can let you know what this will be.

New South Wales

NSW runs under the regulations of SEPP, this allows Councils to charge you Council fees for certification and inspection, and also force you to pay Council contributions.

These fees can be quite large and quite variable. One Shire we have known to be $4200, another $10,400.

Why Do Fees Differ From Council to Council?

As you may have seen, the Contribution fee that you must pay can be quite high, and also vary drastically. This is because of both how and why they are calculated.

In NSW, for example, the Contribution fee you must pay to your Council is determined by:

• The expected growth of the population in the area in the years ahead.
• The costs of the necessary works and services that is identified for this population.
• A per person cost for the required facilities for those who are already residing in the area is then determined.
• This cost is then associated with a cost for each dwelling already in the area.
• This is used as the principal to then charge your contribution fee as a cost per dwelling.
• As a result, how big your granny flat is – how many rooms it has, so how many people can live in it – is also taken into calculation.

We have known some Councils to charge rather low fees, some nil, some only $500, for a 2-bedroom granny flat.We have known other Councils, for the same size granny flat, to charge rather high prices – as much as $16,000 or an incredible $20,000+.

For example, the Councils below have charged these fees in the past:

• The City of Willoughby – Nil (at the time of this post)
• Blacktown Council – $4,200.
• The Hills Shire Council – $10,400.

Now, going in to why they are calculated the way they are. Well, when your granny flat is built, the Council have grounds for belief that more people are going to be living in the area, thus the Councils population will increase. Meaning, your granny flat has increased the need for more public facilities and services in the area for these people to use.

So, the fees that you pay are used so the Council can supply more public amenities, such as:

• Libraries, and the resources in them.
• Open Space, Sports and Recreational facilities or upgrades to existing facilities.
• Plan Authority and Admin.
• Infrastructure for the District.
• Transport such as Trains and Buses, Roads, Bicycle Pathways, Car Parks, and Traffic Management.
• Protection from Bushfires.
• ‘Welcome’ Kits for New Residents.
• Rural or Urban Upgrades.

As these prices can be so high and variable, We recommend you contact your local Council to get a quote before you begin your project. Or You can contact us our granny flat expert, and we will give you a free proposal.