Can I rent it to anyone?

Yes. Since 26 September 2022 a secondary dwelling in Queensland can be rented to anyone, related to the household or not, and the change applies in every council area. The state removed the household test from the definition itself: the Planning Regulation 2017 now says a secondary dwelling is used with and subordinate to the main dwelling whether or not it is occupied by people related to or associated with the main household. There is no sunset date on it. What did not change is everything else: the home still needs its approvals, an existing approval with an occupancy condition has to be changed before a tenant moves in, converting a family flat to a rental can trigger fire and sound separation work, and the moment rent changes hands the Residential Tenancies Authority's rules apply.

What the 2022 change did

Before it, many planning schemes said a granny flat could house only members of the main household. The state's amendment removed that restriction state-wide and also stopped councils assessing how the people in a dwelling relate to each other. The state's own page says an existing, planning-approved secondary dwelling with no occupancy condition can be rented out now, with nothing to lodge.

What still applies

• Approvals. A new secondary dwelling still needs a building approval and may need a planning approval. The 2022 change removed no approval. Council approval, or building approval only?
• Conditions on an old approval. If the existing approval limits who may live there, a change application under the Planning Act 2016 goes to council first.
• Fire and sound separation. Changing a flat from family use to a rental can bring the building code's fire and sound transmission rules into play, which can mean a building application. A building certifier is the one to ask.
• Tenancy law. A self-contained flat where the tenant has no access to the house is a general tenancy on the RTA's Form 18a. Sharing a kitchen with the owner makes it rooming accommodation, with different rules. Bond of at most four weeks' rent, lodged within ten days. Minimum housing standards have applied to every Queensland tenancy since 1 September 2024. Interconnected photoelectric smoke alarms since 1 January 2022.
• Short stays. Airbnb-style letting is a different planning use in most schemes and is not covered by the 2022 change. Check the council page before listing.

Meters, insurance and tax, in one paragraph each

Water can be charged to the tenant only if the flat is individually metered, water efficient and the agreement says so, and fixed charges can never be passed on. Power follows the meter: a separate meter and the tenant pays, no meter and the agreement has to set out the split or nothing can be charged. Decide on meters before the trenches close.

Tell the insurer before the tenant moves in. A granny flat under the home policy may not be covered once it is rented, and an undisclosed tenant is a reason to refuse a claim.

Market rent is taxable income, the costs of the rented part are deductible, the build is claimed as a capital works deduction, and renting out part of the home costs part of the main residence exemption from capital gains tax when the house is sold. Rent from a relative paying towards household costs is a domestic arrangement, not income, and brings no deductions. Renting out a granny flat in Queensland goes through each of these with the ATO's pages.

See it for your block

• Rent calculator, from RTA medians
• Renting out a granny flat in Queensland, the guide
• Check your block

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