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Building a Granny Flat as an Owner Builder – The Complete Guide

You may be looking at building your own granny flat, and to do so you need to become an ‘owner-builder’. But, what do I need to do to become an ‘owner builder’?

 

To become an owner-builder you need to build your granny flat you need:

 

  • Your owner-builders license.
  • A white card.

 

You can then use these to apply for your owner builder permit.

DON'T PAY A FORTUNE FOR YOUR GRANNY FLAT. Find out how to deal with council and build a granny flat for the lowest cost possible. Learn More.


 

Owner Builder Plans once completed give you freedom to control the build

 

I will go through each one of these steps in more detail to clarify exactly what you need to do.

 

I will also talk about every other state and territory of Australia, as some of these will have different things you need to do to get your  permit an owner builder. No delay, let’s begin, so you can begin building.

 

How Do I Become One

 

To become an owner builder in NSW, you do not need to be fully qualified as a builder as such.

 

The steps you need to take are:

 

  • Pass an “owner builders” training test, which can be completed online. (Through an RTO – Registered Training Organisation). You will then receive a PDF Certificate that shows you have these qualifications.
  • You will then need to get your “white card”, which can also be done online.
  • You will then need to apply for your permit, which you can see how this is done in the sub-heading “How Much Do I Have to Pay the Government to Issue My Certificate” below.

 

Some states in Australia have different regulations, and all states have different ways of applying. I also go over this under the same sub-heading below.

 

Who Do I Need to Reach Out To

 

As mentioned, your owner builders’ course can be done online. Simply just search the state that you are planning on building in Australia, and the words “owner builder” on Google, and multiple companies will come up, so you can compare prices and choose what feels best for you.

 

You just need to ensure that the company you choose are certified – that they have an RTO (meaning, they are authorised as Registered Training Organisations). This means they have passed the regulations to become an RTO in the eyes of the government.

 

To confirm that they are a legitimate company, you just need to check for their RTO provider number, which you will be able to find on their website.

 

You can then use this RTO number and search the national register database here. If you cannot find their RTO number, you can also search using their business name or ABN. This will give you that confirmation that their registration is up to date.

 

This is an screenshot from a NSW gov website that shows you need a permit for works over $10000

 

There are also companies that are nationally accredited with an RTO for you to complete your white card online. These companies are registered with all necessary federal and state government associations, such as WorkSafe, SafeWork, and ASQA, for instance. One can be seen here, which is called Absolute Education.  This allows you to do the training at your own home, on your own time, and is also far less expensive than other face-to-face training options.

 

What Is a White Card – And Why you Need One

 

Anyone who works on a construction site in Australia (except South Australia, as of at the time of this post – lucky you!) must do construction training and obtain their white card.

 

The purpose of this is to ensure you, when working in construction, have the basic but essential occupational health and safety (OHS) knowledge. This allows the OHS dangers in the construction industry to be lowered significantly, so is for your own safety, as well as anyone else’s on site.

 

Common Modules in OB Online Courses

 

Your owner builder course will assist you with how to manage your project, so you become the ‘project-manager’ for your build, and are able to keep an eye on it while it progresses.

 

They will also ensure that you are mindful of your legal obligations and rights.

 

Some common modules covered so you learn all of this include the below:

 

  • The owner-builders’ legislative requirements.
  • Building codes and insurance obligations.
  • Site works – These are what are needed on site before construction begins, such as land surveys, excavations, drainage, easement, and clearing and planning.
  • Construction basics – This is what happens at the start of construction, such as installing concrete slabs or piers and planning your site before the build.
  • Effective cost management – including building designs, contracts, quotes, and payments, hiring labourer’s and purchasing building materials, and estimating your cash flow.
  • Asbestos and lead.
  • Wall and roof framing.
  • Painting and decorating.
  • Lock-up and fit-out.
  • How to finish wet areas.
  • How to handle and resolve dispute.
  • To name a few of the key parts it covers

 

Do I Need to Study

 

No, not really.

 

You will be tested on your comprehension in two areas of knowledge – the basics of construction, and the legal requirements that all owner-builders are required to meet.

 

An owner-builders license allows you to be the project manager for your own granny flat. Studying for your owner-builders test is not a necessity, but it will help to increase your knowledge on what you will need to do when construction is taking place, so it is not a bad thing to do. As the RTO’s will assist you in any knowledge gaps by giving you plenty of opportunities to “re-answer” questions that are asked of you.

 

By doing this, you will then also enhance the quality of what you are building, which also allows for better protection for those who are going to be tenants.

 

Owner-builder study guides, such as this one, can be found online if you do wish to study for the test. (But as mentioned it is not necessary) They answer the questions that are commonly asked during the online training

 

The Owner Builder requirements can easily be done online

 

Or if you prefer to do things face-to-face, you can choose to study an exam preparation course, such as this one. And as part of your course, you will receive your ‘Certificate of Completion’ so this does not need to be completed online.

 

What Happens After I “Pass” My OB Course Online

 

Once you have successfully completed your owner-builder online,  you will receive a Certificate of Completion, which will be generated with your own unique code.

 

You will require this Certificate and code when you make your application, so ensure that you keep this.

 

You will also receive a notification if you need to do any construction induction training.

 

But when you do have your owner-builders permit, and I will talk about how long this takes to receive under the sub-heading “When Can I Get Started to Build”, you will be able to do all sorts of building work, not just your granny flat.

 

Anything classified as building work is:

 

  • Erecting additional pre-fabricated metal-framed homes, such as residential detached house.
  • Assembling other non-habitable structures, such as a garage, carport or shed.
  • What you know as common building work.
  • Renovating kitchens, bathrooms and laundries.
  • Structural landscaping.
  • Building swimming pools.

 

Yes really, this one permit will allow you to do all of that, as many times as you want, for as long as the permit lasts. This too is different in every state of Australia, so be sure to check the expiry date on yours. In many cases it lasts 5 years.

 

How Much Do I Have to Pay the Government to Issue My Certificate

 

This will be different in every state of Australia, so I will go over them below now.

 

But please also remember that on top of these costs, you also have the cost for doing your owner builder course, and getting your white card, which will also vary depending on which company you choose to go with.

 

WA

 

In WA, it is typically $174.00 for building a residential structure, although this can change between companies, so I do suggest you check with the one that you choose to use.

 

To make your application, you can:

 

 

If you choose to post this or take it in person, you must also take a fully completed Owner Builder Application – Payment Form.

 

NSW

 

Currently the fee for one year is $219, but you can check here how much you must give Service NSW, as this can fluctuate as time goes on.  And as you can see here, you can either apply online or in person, the choice is yours.

 

QLD

 

In QLD you can lodge your application for an owner builders permit online, which will cost you $461.79.

 

This also allows you to make a application online, in mail, or in person.

 

ACT

 

ACT is one that is different than other states of Australia.

 

To be eligible for your owner builders permit, you must have:

 

  • Completed an owner builder course in the last five years, and
  • You are not allowed to take care of speciality work such as building a swimming pool

 

Fees will change depending on your circumstances, so I suggest you contact the company you plan on using to ask them.

 

You can apply for your permit in one of three ways:

 

 

NT

 

If you are in the NT, you may want to contact the company you choose to use or your local Council for what it costs for an owner builder permit.

 

More information about them can be seen here though.

 

You can apply by:

 

 

TAS

 

Cost for an owner builder permit in Tasmania is $427.20.

 

Your application form for a permit can be found here, and this can be lodged at a Service Tasmania Shop.

 

VIC

 

To apply for an owner builder certification in Victoria, you must pay for a non-refundable fee of $109.70.

 

You can apply by VBA360 – VBA’s online self-service portal.

 

SA

 

The regulations in SA to become am owner builder are also different than other states.

 

You do not need to get a white card. (This may change in the future and follow suit of the other States)

 

So, you can do a short course in owner builder training, and then submit a detailed form to your local Council, showing proof that you own the land, your plans for your project, and evidence of your owner builder knowledge.

 

This application will generally cost you $145, but can change depending on what you are building, the fees of which can be seen here.

 

When Can I Get Started to Build

It typically takes a few days for your application to be processed. Some States – depending on the “red tape” it can take a few weeks. For instance ACT is notorious for taking their time to issue the OB (Owner Builder) permit.

 

Until this is processed, you cannot start any work on your site (including excavation). You are not allowed to start anything until you have the owner builder permit, as your certifier will not be able to put their signature on any plans until they have seen this.

 

How Much Can I Save Being an Owner Builder

Being an owner builder can save you $40,000+ or more on building your granny flat.

 

You will save money on what builder’s call ‘project management’ costs, and are factored into every job they complete.

 

You will also save thousands of dollars if you carry out some of the manual labour yourself that needs to be performed on the build, as these labour costs are costly when building, especially in Australia. The normal labourer, such as a construction worker, does charge hundreds of dollars for one single day’s work. So, if you are able to stand in for the labourer, or act as a ‘builders assistant’ (such as assisting the brick worker) to get any job done more hastily, that is more money in your wallet.

 

You will also be able to save on the building materials themselves. As when you hire a builder, many will put a price on top of the building materials they purchase for your build. So if you source these materials yourself, you will save a lot on the build.

 

I know this because I built my own granny flat, and I saved a lot on what I was quoted.

 

You can read this blog, where I breakdown what it cost my to build my own as an owner builder.

 

Or, if you would like, you can book a free consult with me here to discuss this in more detail.

 

Conclusion

 

As an owner builder, you must be able to manage the construction of your granny flat. So you are taught a lot about construction and building in general, as well as your legal responsibilities, in an owner builders course.

 

Though the rules are different in many states of Australia, in most you do simply require to complete your owner builders test and gain your white card to be able to apply for your permit. This can all be done online. The licenses you will need are only different in the ACT and SA.

 

But you can save over $40,000 by becoming an owner builder, so enjoy building and saving this money. We walk our clients through a process that allows you to get your granny flat at cost. The corner stone of our process is to be in control of the materials and trades. Starting with becoming an owner-builder. To find out more, get in touch today.