.

Understanding NSW and ACT Exempt Development

If you’re building a backyard cabana, garden room, studio, or shed in NSW or the ACT, you may not need council approval. Both jurisdictions allow certain structures to be built without a Development Application, provided they meet specific size, setback, and siting standards. This is known as exempt development. The rules differ between residential and rural land, and the ACT framework was overhauled in late 2023. This guide covers what’s currently permitted under each pathway.

In this article:

For broader council approval guidance covering all Australian states and territories, see Do I need council approval for a shed or garden room?.

Remember, rules can change at any time, so always check with your local authority or a certified planner.

What is exempt development in NSW and ACT?

Exempt development is low-impact building work that can be carried out without a Development Application or council consent, provided it complies with prescribed standards.

In NSW, exempt development for cabanas, garden sheds, gazebos, and similar structures is governed by the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 – commonly called the Codes SEPP – specifically clauses 2.17 and 2.18.

In the ACT, exempt development is governed by the Planning Act 2023 and the Planning (Exempt Development) Regulation 2023, which commenced on 27 November 2023 and replaced the previous Planning and Development Code 2008. Class 10a buildings (the relevant classification for sheds, garden rooms, studios, gazebos, and cabanas) are addressed in Schedule 1, sections 1.40 to 1.46.

The two jurisdictions handle planning and building approvals differently.

In NSW, meeting the Codes SEPP exempt development standards removes both the planning and construction approval requirements in one step.

In the ACT, planning approval (DA) and building approval (BA) operate under two separate exemption frameworks. A project that meets only the DA exemption rules is DA exempt but still needs Building Approval from a private certifier. A project that meets both the DA and BA exemption rules can be built with no formal approvals at all – the BA exemption framework is covered below.

What size cabana, shed or garden room can I build in NSW under exempt development?

NSW thresholds depend on the zoning of your land.

Land zoning Maximum floor area Boundary setback Maximum height
Residential zones 20m² 900mm 3m above ground level (existing)
Rural and large-lot residential (RU1, RU2, RU3, RU4, RU6, R5) 50m² 5m 3m above ground level (existing)

A maximum of 2 such developments per lot is permitted, and the building must be located behind the building line of any road frontage if not in a rural zone.

If your property is rural or acreage and you’re considering a larger building such as a Cedarspan barn or country cabin, the rural thresholds may apply – see Do I need council approval for my rural building? for full guidance.

You may also be interested in the generous council exempt allowances for farm buildings in NSW.

What other NSW exempt development requirements do I need to meet?

Beyond size and setback, the NSW Codes SEPP imposes a number of additional standards under clause 2.18. These include:

  • Building classification: must be a Class 10 non-habitable structure such as a shed, carport, private garage, or gazebo (cl 2.18(1)(l))
  • Shipping containers: cannot be a shipping container (cl 2.18(1)(f))
  • Easements: must be located at least 1m from any registered easement (cl 2.18(1)(m))
  • Roofwater: must be disposed of without causing nuisance to adjoining owners (cl 2.18(1)(g))
  • Heritage conservation area: if located in a heritage conservation area or draft heritage conservation area, must be in the rear yard (cl 2.18(1)(j))

Can I put a kitchenette or bathroom in an exempt NSW cabana?

No. Under NSW Codes SEPP clause 2.18(1)(n), a cabana installed as exempt development cannot be connected to water supply or sewerage services. This means kitchenettes, bathrooms, and laundry facilities are not permitted within Cabanas erected under the exempt development pathway in NSW.

If you want a backyard Cabana with plumbing – for use as a granny flat, self-contained studio, or guest accommodation – you’ll need to use the Complying Development pathway under the State Environmental Planning Policy (Housing) 2021, or apply for a full Development Application. Greenspan has habitable options with the necessary upgrades across the Melwood range – speak to our team about your specific project.

Note: While cl 2.18(1)(n) only names cabanas in the water and sewerage prohibition, cl 2.18(1)(l) requires every structure under this exempt pathway to be a Class 10 non-habitable building.

A useful nuance – the water and sewerage prohibition in cl 2.18(1)(n) is specifically drafted in relation to cabanas. The Codes SEPP groups cabanas, garden sheds, cubby houses, ferneries, gazebos, and greenhouses together as exempt structures (cl 2.17), but the plumbing prohibition only names cabanas. This means water and sewerage connections to a garden shed or cubby house under this exempt pathway aren’t ruled out by the Codes SEPP – for example, a sink in a shed for cleaning paint brushes or a small water connection in a cubby house isn’t prohibited by the exemption.

What size shed or garden room can I build in the ACT under exempt development?

In the ACT, the Planning (Exempt Development) Regulation 2023 specifies maximum plan area based on block size, set out in Schedule 1, section 1.42(3):

Block size Maximum plan area
Less than 500m² 10m²
500m² to less than 600m² 25m²
600m² or more 50m²

For rural leases, section 1.85 allows designated development of buildings or structures with a plan area up to 216m² without a Development Application, subject to native vegetation, land management agreement, and other conditions.

Section 1.40 confirms that “Class 10a building” includes sheds, garages, carports, garden rooms, gazebos, pergolas, shelters, studios, workshops, and cubbyhouses, as well as stables, storerooms, and other outbuildings.

What other ACT exempt development requirements do I need to meet?

Under the Planning (Exempt Development) Regulation 2023, an enclosed roofed Class 10a building (the relevant category for most cabanas, sheds, garden rooms, and studios) must meet a number of standards.

These include:

  • Height: not more than 3m above datum ground level, or up to 4m if no part is higher than a 30° plane projecting from a height of 3m at the boundary (s 1.42(c))
  • Solar building envelope: no part of the building can extend beyond the relevant solar building envelope (s 1.42(d))
  • Front boundary: behind the building line if plan area is more than 10m², also at least 15m from the front boundary (s 1.42(3))
  • Side and rear boundary clearance area: the area within 1.5m of any side or rear boundary, where a maximum of 2 Class 10 buildings is permitted with combined cross-section area not exceeding 30m² (s 1.41)
  • General exemption criteria: must comply with the general criteria in sections 1.10 to 1.17, including easement clearances, plumbing standards (AS/NZS 3500), and heritage protections under the Heritage Act 2004
  • Lease compliance: must comply with the lease for the land — a requirement unique to the ACT, where all land is leasehold (s 1.14)

Building Approval (BA) operates under a separate framework from Development Approval. Some Class 10a buildings that are DA exempt also qualify for BA exemption under Schedule 1 of the Building (General) Regulation 2008 – see the next section.

What ACT structures are exempt from both Planning and Building Approval?

Class 10a buildings can be exempt from Building Approval (BA) in the ACT if they meet the conditions in Schedule 1 of the Building (General) Regulation 2008. A project that meets both the DA exemption rules and the BA exemption rules can be built without any formal planning or building approvals.

Schedule 1 sets out the categories of Class 10a buildings that are exempt from Building Approval:

Enclosed outbuilding – for Class 10a buildings with walls (covers sheds, studios, workshops, cubbyhouses, gazebos with walls, storerooms, conservatories, greenhouses, stables):

  • Class 10a building with one or more walls
  • Nominal height not more than 3m
  • If the structure has a roof covering, the roof area is not larger than 25m²

Small open structures – for outbuildings without walls (covers carports, pergolas, gazebos, verandahs, decks, and similar):

  • No walls
  • Nominal height not more than 3m
  • If the structure has a roof covering, the roof area is not larger than 25m²
  • If the structure has a floor, the floor is not higher than 1m above ground
  • Frame has no unsupported span (including any cantilever) longer than 4m

If your project fits one of these BA exempt categories AND it’s also DA exempt, you can build with no formal approvals required.

If your project is DA exempt but exceeds the BA thresholds, you’ll need a private certifier for Building Approval, but skip the DA stage.

The “no approvals” pathway works best for smaller buildings – typically up to about 25m² roof area, where the project sits within both the DA exemption limits and the small open building or enclosed outbuilding BA category. Many Melwood configurations sit within these thresholds.

Can I put a kitchenette or bathroom in an exempt ACT shed?

Yes – provided plumbing complies with AS/NZS 3500.

Unlike NSW, the ACT Planning (Exempt Development) Regulation 2023 does not prohibit water or sewerage connections in cabanas. Section 1.12 of Schedule 1 requires only that plumbing fittings comply with the Australian Standard AS/NZS 3500 (Plumbing and drainage set).

This means a Class 10a workshop, studio, or shed in the ACT can include a kitchenette or bathroom, provided:

  • The building remains non-habitable under the Building Code (a building used primarily for sleeping or living becomes Class 1a habitable and falls outside the exempt Class 10a pathway)
  • Plumbing meets AS/NZS 3500
  • Other exempt development standards (size, setbacks, solar envelope) are met
  • Building Approval requirements are met (some Class 10a buildings qualify for BA exemption – see the section above)

If you’re planning to use the building primarily as living space – for example, a granny flat – that’s a habitable building and a different approval pathway applies. Speak to one of our Solutioneers about whether your project fits the exempt Class 10a pathway or needs a Complying Development or Development Approval.

What if my property is on bushfire-prone land?

In NSW, under Codes SEPP clause 2.18(1)(i), if your proposed structure is on bushfire-prone land and located less than 5m from a dwelling, it must be constructed of non-combustible material. If you can locate the structure more than 5m from any dwelling, the non-combustible requirement does not apply.

In the ACT, the Planning (Exempt Development) Regulation 2023 does not impose specific construction requirements for bushfire-prone areas. Where Building Approval is required, AS 3959 (Construction of buildings in bushfire-prone areas) compliance is checked at the Building Approval stage. If your block is in a designated Bushfire Prone Area, Voluntary AS 3959 compliance is recommended for small structures that are BA exempt.

Check your block’s bushfire status via the ACT Emergency Services Agency bushfires page before proceeding.

Can I use an exempt cabana or shed as a granny flat or secondary dwelling?

No. Both NSW and ACT exempt development pathways apply only to non-habitable Class 10a buildings. Granny flats, and secondary dwellings that are self-contained living spaces are habitable buildings and require a different approval pathway.

For habitable structures, you’ll need:

  • In NSW: a Complying Development Certificate (CDC) under SEPP (Housing) 2021 with a 60m² floor area cap, or a full Development Application
  • In the ACT: full Development Approval under the Planning Act 2023 (the exempt pathway under section 1.15 of the regulation specifically prohibits increasing the number of dwellings on a block to 2 or more)

Greenspan offers habitable options across the Melwood and Cedarspan ranges, compliant with CDC and DA pathways.

What land is excluded from exempt development?

In NSW, the Codes SEPP clause 1.19 excludes a range of land from the exempt development pathway, including:

  • Land containing a heritage item or draft heritage item
  • Land that is environmentally sensitive or in a protected area
  • Land identified on an Acid Sulfate Soils Map as Class 1 or Class 2
  • Land in a foreshore area
  • Land subject to a biobanking agreement or private land conservation agreement
  • Land identified as being affected by coastal hazards
  • Land within the 25 ANEF contour or higher (aircraft noise)
  • Unsewered land in the Sydney Drinking Water Catchment

In the ACT, exempt development is excluded in a number of circumstances, including where the proposed work would:

  • Be located on a place or object included in the heritage register or under a heritage agreement under the Heritage Act 2004
  • Breach the lease conditions for the block (s 1.14)
  • Increase the number of dwellings on the block to 2 or more (s 1.15)

You can check your property’s planning status using the NSW Planning Portal or, in the ACT, the ACT Planning Authority’s self-check tool.

What if my project doesn’t meet exempt development requirements?

If your proposed building exceeds the size limits, fails a setback, or your land isn’t eligible, you have two main pathways:

  1. Complying Development Certificate (CDC) – a faster pathway than a full DA, available for buildings that comply with prescribed development standards. Often appropriate for slightly larger structures or habitable buildings such as secondary dwellings.
  1. Development Application (DA) – required for projects that don’t meet either exempt or complying standards. Lodged with your local council in NSW, or with the Territory Planning Authority in the ACT.

For complex sites – including heritage, bushfire, flood, or environmentally sensitive land – we recommend engaging an accredited certifier or town planner before progressing.

Where can I find the official exempt development standards?

For the most current legislation, refer directly to the source documents:

NSW

State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 – clauses 2.17 and 2.18 cover cabanas, sheds, gazebos, and clause 1.19 covers excluded land

NSW Planning Portal – property-specific planning information

ACT

Planning (Exempt Development) Regulation 2023 – Schedule 1, sections 1.40 to 1.46 cover Class 10 buildings and section 1.85 covers rural leases

Building (General) Regulation 2008 – Schedule 1 covers Building Approval exemptions for Class 10a buildings

Check if you need a DA – ACT Government DA self-check tool

Check if you need a BA – ACT Government BA self-check tool

We always recommend that you also speak to your local council to determine what you can build without any approval. In addition, it’s highly recommended that you discuss your proposed development with your neighbours, regardless of whether you need approval or not.

Working with Greenspan on an exempt development project

Greenspan PreCrafts timber Melwood and Cedarspan buildings that can be used in accordance with various exempt development standards across NSW and ACT. Many of our standard configurations sit within the 20m² (NSW residential), 50m² (NSW rural and ACT large blocks), or 25m² (ACT mid-blocks) thresholds, and our team can advise on which fit your specific block.

Engineered building drawings are available for purchase if required as part of any subsequent Building Approval or Complying Development application.

For a personalised quote based on your block, requirements, and approval pathway, arrange a Callback from one of our Solutioneers.

It’s fast and easy to get a personalisable, backyard cabana, garden room or shed with a PreCrafted building from Greenspan.


Already downloaded our Design Price Guide and ready to take the next step?

Let’s meet. Book a callback from one of our friendly team.

Download design price guide
  • Backyard Studios
  • Backyard Offices
  • Backyard Pods
  • Art Studios
  • Timber Barns
  • Barn Homes
  • Accommodation Sheds
  • Off Grid Cabins
  • Pool House Designs
  • Backyard Gyms
  • Outdoor Laundries
  • Teenage Retreats
  • Shed Bars
  • Prefab Cabins
  • Log Cabins
  • Hairdressing Sheds
  • Garden Sheds
  • Potting Sheds