Brighter And some

Are granny flats the warm hug to our rental woes?

by Kate Watt, Marketing Manager 6 October 2022

In response to ongoing rental supply challenges, the Queensland Government has put in place ‘emergency’ changes to allow Queenslanders to rent out granny flats – a dwelling type previously restricted to family members.

Deputy Premier and Minister for Planning Steven Miles said in a media statement that the changes will remove restrictions on people who can live in secondary dwellings.

“Many homeowners have granny flats that they’ve built or converted for family members or teenagers who have since moved out,” Mr Miles said.

“Right now, most homeowners can’t rent secondary dwellings, such as granny flats, to anyone other than their immediate family.

“At the same time some Queenslanders are sleeping in their cars or in tents.

“It just makes sense to allow existing accommodation to be occupied by someone other than a relative to provide more affordable accommodation for Queenslanders.”

The changes are tipped to be welcome news for those granny flat owners looking for a rental income.

“It also allows homeowners to earn rent, helping them meet the increased cost of living,” Mr Miles said.

The changes will be reviewed after three years to ensure there are no “unintended consequences”.

Real Estate Institute of Queensland CEO Antonia Mercorella told that homeowners should do their research before renting out the granny flats.

“We’d also issue a word of warning to homeowners – it’s important to do your research to understand the potential tax implications that this could create, in terms of capital gains tax at the time of sale, as well as potentially triggering land tax liabilities under recent land tax reforms.”

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