An innovative program in Tasmania is providing property owners looking to build a granny flat for the purpose of renting it out with $10,000 grants to help get the job done.
The Ancillary Grants Program launched by the Tasmanian government aims to support the construction of ancillary dwellings as a way of adding extra living space to an existing home or backyard while expanding options in the rental market.
Costing $2.5 million, the program has already issued almost 150 grants, with work already breaking ground. Roughly 100 further grants are available.
Once finished, recipients are required to make their new ancillary dwelling available as a long-term rental for at least two years.
The program is open to home owners across the state, including companies and trusts that hold residential property.
Michael Ferguson, Tasmania’s Minister for State Development, Construction and Housing, explained they were taking a targeted approach to stimulate additional housing supply at a time when the state’s population is growing.
“This program will help more Tasmanians add additional living quarters to their home, and support those looking for somewhere to rent,” Mr Ferguson said.
The new builds must meet the specifications for an ancillary dwelling, meaning that they are self-contained additional living spaces with a floor area of up to 60 square metres. They can be detached or semi-detached (such as sharing an outside wall) or an internal part of the home.
They also must share amenities like access and parking, water, sewerage, gas, electricity, and telecommunications connections and meters with the primary dwelling.
“I would encourage anyone who hasn’t already done so to consider taking advantage of this initiative and lodge an application before the end of June,” Mr Ferguson added.
Applications to receive a grant extend through the end of FY22.
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Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.