Can You Legally Live in a Tiny Home in NSW? [2025 Guide]

14th of June 2025 | By Sarah Johnstone

Tiny homes are gaining serious momentum across New South Wales, offering a flexible and affordable housing solution like no other. Whether you’re embracing tiny homes for a long-term lifestyle change, a temporary housing solution, or an investment to unlock rental income from your property, it is important to understand tiny home legalities to make them work for you.

What You'll Takeaway From This:

This guide breaks down NSW State Legislation relating to Tiny Homes on Wheels in 2025, including; if you can live in them, when council approval is needed and what exemptions apply + you’ll get our free NSW Tiny Home Compliance Checklist.

What Is a Tiny Home on Wheels and How Is It Legally Classified in NSW?

In NSW, a Tiny Home on Wheels is typically classified as a caravan, campervan, or moveable dwelling. This classification exists because Tiny Homes on Wheels are built on road-registrable trailers, not on permanent foundations like traditional homes or granny flats, their mobility makes them structurally and legally different.

Tiny Home on Wheels vs Fixed Dwellings: Key Legal and Structural Differences

The key difference between a Tiny Home on Wheels and a fixed dwelling is that Tiny Homes on Wheels are designed to be relocatable.

Tiny Homes on Wheels

Designed to be towable by vehicle
Built on a trailer base
Registrable with Transport for NSW as a trailer
Designed to be road compliant for transport

Fixed Dwellings

It is a permanent structure
Built on foundations
Must comply with the National Construction Code (NCC)
Requires a DA (Development Application) approval

As a result, Tiny Homes on Wheels are treated more like vehicles than buildings under NSW law, which places them in a separate legal category and exempts them from many building and planning approval requirements that apply to fixed dwellings.

What Rules and Regulations Apply to Tiny Homes on Wheels in NSW?

What Does Apply –

Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021: Governs how, when and where Tiny Homes on Wheels can be legally used in NSW.
Road Transport (Vehicle Registration) Regulation 2017: Governs the registration and legal classification of vehicles in NSW. If a tiny home is built on a trailer and intended to be classified as a trailer/ caravan it must be registered with TfNSW.
Your Local Council’s Planning Policy on Tiny Homes on Wheels/ Moveable Dwellings (Developed using the relevant Local Environmental Plan and Development Control Plan): Governs how Tiny Homes on Wheels/ Moveable Dwellings are used within your LGA (Local Government Area) and what approvals are applicable.

What Doesn't Apply –

Development Approval (DA): Generally, you do not need a DA approval for a Tiny Home on Wheels as it is usually classified as a caravan. It will typically fall under Complying or Exempt Development which will usually require a CDC (Complying Development Certificate), Council Planning Permit or no planning approvals.
Construction Approval (CC): You don’t need a CC (Construction Certificate) for a Tiny Home on Wheels as this would require it complies with the Building Code of Australia (BCA) – National Construction Code (NCC) which is not applicable to a Tiny Home on Wheels as they are moveable dwellings, not permanent structures. The NCC applies only to fixed buildings.
S68 Approval: Some Council’s do not support hard connection of compact houses/ movable dwelling on trailers or caravans to council water and sewer system therefore S68 Approval may not be applicable for a Tiny Home on Wheels.
Zoning Restrictions: Because a Tiny Home on Wheels can be classified as a vehicle or moveable dwelling (not a permanent structure), they’re often exempt from zoning rules that apply to traditional homes and granny flats such as – minimum lot sizes, dual occupancy restrictions, or housing density limits.

Living in a Tiny Home on Wheels in NSW Legally Without Council Approval

The Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds, and Moveable Dwellings) Regulation 2021 states the exemptions for council approval, as noted below:

77 ‘Installations for which approval not required’

(1) The approval of the council is not required for the installation of the following-

(b) 1 caravan on land occupied by the owner of the caravan in connection with the owner’s dwelling house if the caravan is-

(i) used for habitation only by the owner or members of the owner’s household, and

(ii) maintained in a safe and healthy condition

Therefore: You can have one Tiny Home on Wheels on a property with someone occupying it full-time without council approval if;

It is occupied by the owner of the tiny home
There’s a primary dwelling on the property
The person occupying the tiny home is a member of the property owners household (as defined by the property owner)
The tiny home/ caravan is kept in a safe and healthy condition

When Approvals Are Required for a Tiny Home on Wheels

In NSW, you typically will need council approval or other planning permissions if your tiny home doesn’t meet the exemption conditions under Clause 77 of the Local Government Regulation 2021 (noted above).

What Approvals Are Typically Required for a Tiny Home on Wheels in NSW

While DA (Development Application) Approval typically does not apply to a Tiny Home on Wheels due to their moveable nature (DA approval applies primarily to fixed, permanent structures), other lesser forms of development approval are often required.

A Tiny Home on Wheels will typically fall under Complying or Exempt Development and will therefore require either a CDC (Complying Development Certificate), Council Planning Permit or some other form of minor council approval.

To find out what approvals apply to your circumstances specifically, contact your local council or planning consultant.

Maintaining Safety and Compliance

Once your Tiny Home on Wheels is installed on the property and you are living in it or leasing it out, it must be maintained in a safe & healthy condition.

To stay compliant, ensure you:

Maintain safe and clear access to the tiny home
Maintain adequate power, water, gas, and waste systems for the tiny home
Maintain the tiny home in a safe and healthy condition – i.e. maintain structural integrity, adequate ventilation, clean water supply, safe gas installations (if applicable), adequate sanitation & waste management, fire safety measures (smoke alarms), and pest and vermin control.

Can You Rent Out a Tiny Home on Wheels in NSW?

Yes you can rent out a Tiny Home on Wheels in NSW. If the tiny home is safe, well-maintained, and set up on land with an existing dwelling, it may be suitable for use as a secondary dwelling. Many landowners use tiny homes as a way to accommodate family and friends, or generate rental income through long-term tenants.

If you are planning on adding a Tiny Home on Wheels to your property to rent it out long-term it is essential that you contact your local council first about any approvals that may be required.

Key Takeaways for NSW Tiny Home Living in 2025

Yes, you can legally live in a Tiny Home on Wheels in New South Wales in 2025 if you comply with planning requirements and follow approvals pathways under your relevant local and state planning laws.
Clause 77 of the Local Government Regulation 2021 sets out criteria for living in a Tiny Home on Wheels in NSW legally without council approvals (Exempt Development) .
If you do not meet criteria in Clause 77 of the Local Government Regulation 2021 to be considered Exempt Development, council approval will be required.
Specific approvals required for a Tiny Home on Wheels will be determined by your Local Council (typically a Planning Permit or Complying Development Certificate will be required).
DA (Development Application) Approval usually does not apply to a Tiny Home on Wheels as they are not a fixed, permanent structure.
Contact your Local Council and/ or Planning Consultants to identify local planning laws that apply to you.

Stay Compliant with the NSW Tiny Home Compliance Checklist

Make sure you don’t miss any legal or safety steps, grab our free NSW Tiny Home Compliance Checklist. It covers Tiny Home Registration, State Planning Laws and Health & Safety Standards.

Disclaimer: This is general information only and not legal advice. Please check with your local council for rules specific to your area.