Building a DPU in Victoria ends soon

Last updated October 2026

If you’re planning a granny flat specifically to house a family member, there’s a deadline in Victoria you need to know about because it affects how big you can build without a planning permit.

From 28 March 2027, the only way to add a granny flat without a planning permit will be by adding a ‘small second dwelling’. Until then, there is still the option of building a dependent person’s unit (DPU).

Small second dwellings come with flexibility that DPUs don’t have. However, there is one significant catch for some, in that the size is capped at 60m².

A DPU, however, can be larger than 60m² and built without a planning permit. But they do come with other restrictions and, most critically, they are being phased out. So, if you want a more generously sized granny flat to house a parent or family member, this is the closing window to build one. While you will still be able to build a small second dwelling without a planning permit, after 28 March 2027, anything larger than 60m² will need a full planning permit, which means more time, cost and uncertainty.

Here’s a rundown of what’s changing, who it affects, and why it may be worth building your granny flat sooner rather than later.

In this article:

What is a DPU?

A dependent person’s unit (DPU) is “a movable building on the same lot as an existing dwelling and used to provide accommodation for a person dependent on a resident of the existing dwelling.”

In other words, it’s a portable, self-contained home built on the same block as an existing house, for a person who depends on someone living in the main home, often an ageing parent, or a family member who needs support.

For years it was Victoria’s standard “granny flat” pathway. But in December 2023, a new land-use term, the small second dwelling, took its place as the default, and the DPU began to be phased out. It’s still available for now, under a transitional arrangement, but not for much longer. And if you’re thinking of building a granny flat, this might be critical to you.

A DPU cannot be rented out, and it must be movable. The Victorian planning scheme defines this as a building ‘designed to be moved from place to place on more than one occasion’. It’s a point councils take seriously, so it’s worth confirming any design with your building surveyor early.

When does the DPU window close?

The DPU pathway closes on 28 March 2027. After that, you can’t start the process for a new one.

To build a DPU, you need the approval process genuinely underway before the deadline. That means one of the following in place before 28 March 2027:

• A planning permit application lodged, or
• A building permit issued, or
• A building surveyor appointed, with the building permit issued by 28 June 2027

You don’t need the building finished by the deadline, but you do need to have started. And because approvals take time, the real deadline to begin is well before March 2027. If a DPU is right for your family, it’s worth starting the conversation now.

Why would I hurry to build a DPU instead of a small second dwelling?

For most people, a small second dwelling is the simpler choice. It’s easier to approve, and it can be rented out. But a DPU has three advantages over a small second dwelling that will disappear after 28 March 2027.

• It can be larger than 60m².
  A small second dwelling is capped at 60m² of gross floor area. A DPU isn’t, so if you want extra room to house your family member more comfortably, perhaps with space for a carer, better accessibility, or a proper living area, the DPU is the way to do it without a planning permit. However, it has to be genuinely movable, and councils have challenged large DPUs on that point, so confirm your design with your building surveyor early.
• No planning permit needed on smaller blocks.
  On a lot under 300m², a small second dwelling needs a planning permit. In most residential zones, a DPU doesn’t, whatever the block size, unless an overlay such as flood or bushfire applies.
• It follows looser siting rules. The siting rules that apply to a small second dwelling, such as sitting behind the front wall of the house, having its own private open space and a clear front path, don’t apply to a DPU. On a tight or awkward block, that can make a real difference to what you can build and where.

So, if you want a more generous building for a dependent family member, have a block that’s under 300m², or one that makes a small second dwelling hard to site, the DPU is the better option for now and you might want to act fast.

Can I rent out a DPU?

No. This is the one thing to be very clear on.

A DPU can only house a person who depends on someone living in the main home. It cannot be rented out to anyone else. If you ever want rental income, a DPU is the wrong choice: you’d need a small second dwelling, which anyone can live in and which has no deadline, but cannot be larger than 60m².

It’s also worth knowing that once a DPU is no longer used by a dependant, it must be removed or converted to a small second dwelling. Keep in mind that a DPU larger than 60m² can’t be converted to a small second dwelling, because it fails the small second dwelling’s 60m² cap. So, if you do build a bigger DPU, plan for what happens when it’s no longer needed – it will have to be removed, or you will need to apply for a planning permit.

In summary, a DPU is the right choice for family and multigenerational living – keeping a parent close, supporting a family member, or having loved ones nearby, supported but with some independence. It is not an income or investment option.

Who should act now?

If you simply want a smaller granny flat, under 60m² that you might one day rent out, there’s no need to rush: a small second dwelling has no deadline. Our full guide covers that pathway in detail: ‘Granny Flats’ in Victoria: 2026 rules.

However, the timeline for the window closing is critical if you:

• Want to house a parent, adult child or other dependent family member
• Would like that building to be larger than 60m²
• Have a block under 300m², or
• Have a block where the small second dwelling siting rules would be difficult, and
• You wish to avoid the need for a planning permit, saving time, money and hassle

If that’s you, the DPU offers something the small second dwelling can’t, and it will not be an option for you beyond 28 March 2027. Starting the design and approval process well before then is the safest way to make sure you don’t miss what’s left of the window.

Building a DPU with Greenspan

When you’re working to a deadline, speed and certainty matter. A Greenspan building has a real advantage over a traditional site build. Because it’s PreCrafted off-site and delivered as modular panels ready to install to lock-up stage on site, the process is faster and more predictable. The PreCrafting process itself usually takes just a matter of weeks, and most buildings can be installed to lock-up stage in a day or two or up to 1-2 weeks for larger structures. When there’s a date on the calendar, this speed matters.

Our buildings are also relocatable – designed to be assembled and, if needed, craned as a complete building to a new location or disassembled and rebuilt elsewhere.

Whether a DPU is the right pathway for your project, and whether a particular design meets the movable requirement, depends on your site, your council and your building surveyor. The best first step is a conversation with a Design Solutioneer, who can help with some initial advice and point you in the right direction for further information and next steps.

Thinking about a DPU for your family?

The window to begin the approval process for a DPU closes on 28 March 2027. So, if housing a parent or family member is on your mind, it’s absolutely worth starting the conversation now.

Dream it. Build it.