**Trial of New Planning Rules for Mobile Tiny Homes Could Become Blueprint Across New South Wales**
There is hope that a trial of new planning rules for mobile tiny homes could become a blueprint for approving these dwellings across New South Wales (NSW).
Currently, mobile tiny homes are not clearly defined under state planning laws. Homes that can be transported on a trailer are typically assessed as caravans and subject to strict conditions, including the requirement that they can only be occupied by a member of the primary household. This planning grey area has left residents across NSW struggling to gain approval to live in tiny homes, while councils remain confused about how to assess them.
However, one South Coast council believes it has found a planning pathway that would allow these homes to be occupied by anyone — an option they say could work statewide.
### Shellharbour Council’s Two-Year Trial
Last week, Shellharbour Council approved a proposal to amend its Local Environmental Plan (LEP) for a two-year trial, allowing the installation of mobile homes on residential land without a development application.
Importantly, the changes would remove the condition restricting occupancy to members of the primary household. The amendment, however, requires state government approval and a public exhibition period before it can be confirmed.
Michael Park, Shellharbour Council’s Executive Director of Planning and Environment, said he believed it was the first planning pathway of its kind in the state.
> “It’s an area that creates a lot of confusion for communities, council and industry,” he said.
### Strict Guidelines for Eligibility
The new policy outlines strict restrictions on eligible structures, including setback requirements, size guidelines, and prohibitions within bushfire or flood-prone areas. Additionally, the tiny home must be located on a property with an adjoining approved home and be connected to water and sewer systems.
> “That will allow us to keep track and monitor how many tiny homes are taken up as part of the trial,” Mr Park said. “It was not about just allowing the types of homes to go anywhere on a site and on any land.”
### Wider Impact and Government Consideration
Other NSW councils have called for more clarification around tiny homes. The state government is still considering reforms to planning legislation concerning moveable dwellings and caravans.
Shellharbour Mayor Chris Homer, who proposed the 2024 trial, said this could be a solution for other councils as well.
> “To the best of my knowledge, this is a first for NSW, and my expectation is this mechanism will not only work for Shellharbour but will also be ready for other local government areas (LGAs) should they want to adopt it,” he said.
### Tiny Home Owners Call for Change
Further down the coast, tiny home owner Joshua Heins hopes his council will adopt a similar trial. In June, Mr Heins faced complexities in tiny home planning when he received an unexpected eviction notice from Bega Valley Council. The council deemed his mobile dwelling—installed on rural property under an agreement with the landowner—an “unauthorised structure” requiring development approval, ordering him and his partner to vacate.
Currently fighting the order in the Land and Environment Court, Mr Heins said the definitions outlined in the Shellharbour trial offered much-needed clarity.
> “They’re obviously trying to address a problem that’s pretty widespread in New South Wales, and they’re taking some concrete steps towards that,” he said.
> “We need that in Bega Valley because, at the moment, we don’t have a consistent or clear definition, and that’s leading to inconsistent compliance action.”
Emily Harrison, Bega Valley Shire’s Director of Community, Environment and Planning, told ABC the council would be “watching the Shellharbour trial and progress closely to see what learning and opportunities there are for the Bega Valley Shire.”
### A Long-Time Coming for Tiny Homes
Michael Duffy, head of the Australian Tiny House Association’s NSW branch, described Shellharbour’s proposal as a “common sense” planning approach.
> “It’s huge. It’s a long time coming,” he said, noting many councils struggle to interpret current legislation, which leads to a lack of regulation and oversight.
> “Hopefully all the other councils are looking at it and not waiting two years to see if it works or not, just taking a bit of initiative and doing a similar thing.”
The trial in Shellharbour could pave the way for clearer, more accessible planning rules for mobile tiny homes across New South Wales, offering hope for residents and councils alike.
https://www.abc.net.au/news/2025-09-29/shellharbour-council-tiny-home-pilot-proposal-development/105811852
