Demolishing for a Granny Flat or Second Dwelling on Your Block

It used to be that adding a granny flat in Victoria was a three-month planning permit grind. Then in December 2023, the rules changed — and the way Melbourne homeowners think about their backyards changed with them.

Today, in 2026, a small second dwelling of up to 60 square metres (the new official name for what most people still call a “granny flat”) can usually be built on the same block as your existing home without a planning permit in most residential zones. Adult kids who can’t afford to move out. Ageing parents who want to be close, but not too close. A working-from-home studio that converts to a rental down the track. A self-contained guest space. The use-cases have exploded — and so has demand.

But here’s what almost every homeowner discovers within five minutes of measuring the back yard: the space where the new dwelling is going to sit isn’t empty. It’s currently occupied by a 1965 asbestos-cement garage, a sagging fibro shed full of rusted tools, an old sleep-out the previous owner added without a permit, a crumbling concrete carport, a derelict pool that’s been a leaf pit for a decade, or a rear extension on the main house that was always going to come off one day.

That’s where we come in. As a fully licensed Melbourne demolition company with Class B (non-friable) asbestos removal capability, we clear hundreds of Melbourne back yards every year for granny flat and second dwelling builds — from tight inner-suburban blocks in Brunswick and Northcote, through middle-ring properties in Bentleigh, Mt Waverley and Box Hill, to outer-growth-corridor sites in Tarneit, Cranbourne, Berwick, Mickleham and Officer.

This guide is the plain-English 2026 version of what demolition actually involves when you’re clearing a Melbourne block to make space for a granny flat or second dwelling — what you’ll be removing, what permits you’ll need (the answer is simpler than most homeowners expect), what asbestos surprises hide in old back-yard structures, what it costs, and how to keep the demolition phase from blowing out the budget for the main build.

Quick answer: A small second dwelling (SSD) — also known as a granny flat, secondary dwelling, or accessory dwelling unit — is a self-contained residence of up to 60 m² on the same lot as an existing home. Since Amendment VC253 (14 December 2023), most SSDs in Victorian General Residential, Residential Growth and Neighbourhood Residential Zones on lots over 300 m² no longer require a planning permit, though a building permit is always required. Almost every granny flat build in Melbourne starts with demolition — most commonly an old asbestos-cement garage, fibro shed, carport, sleep-out, derelict pool, or an existing dependent person’s unit (DPU) being replaced. In 2026, demolition for a granny flat in Melbourne typically costs $3,500–$15,000 for a single outbuilding, $8,000–$22,000 for multiple back-yard structures, and $15,000–$35,000 where part of the existing home is being demolished to attach the new dwelling. Section 29A consent is usually not required for outbuildings (they’re separate buildings), but a building permit for demolition, an asset protection permit, Class B licensed asbestos removal on any pre-2003 structure and full EPA Waste Tracker compliance are. The asbestos in your old garage is almost always the largest single cost driver — and the most commonly underestimated.

Why Granny Flat Builds Are Surging in Melbourne — And Why They Almost Always Need Demolition First

The Housing Statement: The Decade Ahead 2024–2034 released by the Victorian Government, paired with Amendment VC253 and the Building Amendment (Small Second Dwellings) Regulations 2023, removed one of the biggest hurdles to backyard development in Victoria’s history: the planning permit. For homeowners on standard suburban blocks, a granny flat that meets the SSD definition can now move from idea to build approval in weeks rather than months.

That regulatory shift has collided with two other forces: housing affordability pressure (with adult children and ageing parents staying or returning to family blocks), and a generational stock of post-war suburban Melbourne homes that came with a back-yard ecosystem of garages, sheds, carports, sleep-outs and outbuildings built between the 1950s and 1990s. Almost all of which contain asbestos.

The result: hundreds of Melbourne homeowners every month are looking at a 30–80 m² stretch of back yard, realising it’s the perfect spot for an SSD, and discovering that the existing structures have to come down first — under the same WorkSafe Victoria, EPA Victoria and council frameworks that govern every other demolition in the state.

The Most Common “What Goes First” Scenarios

Across the Melbourne projects we run, the pre-granny-flat demolition scope falls into a handful of recurring patterns:

Old asbestos-cement garage with Super Six corrugated roofing — by far the most common scenario in 1950s–1980s Melbourne suburbs.
Fibro garden shed or workshop — often unauthorised, often patched with mismatched cement sheet over decades.
Detached fibro laundry, “dunny” or washhouse — common on pre-1970s blocks in Reservoir, Sunshine, St Albans, Broadmeadows and Frankston.
Asbestos-walled sleep-out, rumpus room or converted carport — added to original homes in the 1960s–80s without permits in many cases.
Existing dependent person’s unit (DPU) or older granny flat being replaced with a compliant modern SSD.
Carport, pergola or shadecloth structure with asbestos-cement panels or roofing.
Swimming pool, spa or pool house taking up the footprint a new SSD needs.
Rear extension on the main house being removed to make space for an attached secondary dwelling.
Concrete driveways, paving and old slabs in the proposed SSD footprint.
Asbestos fencing along the boundary closest to where the new dwelling will sit.

Each of these has its own scope, its own cost band, and its own regulatory pathway. A few of them are simpler than homeowners expect. A few are far more involved than the headline price of “knock down the garage” suggests.

What Counts as a Granny Flat or Small Second Dwelling in Victoria 2026?

Before we talk about what to demolish, it’s worth being precise about what you’re building — because the rules that govern the new dwelling also affect what permits the demolition triggers.

Under the framework that came into operation on 14 December 2023 (Amendment VC253), a small second dwelling (SSD) in Victoria is:

A self-contained residence with its own kitchen sink, bathroom and toilet
Up to 60 m² gross floor area (GFA) — including all storeys and all roofed areas, attached porches, verandahs and carports built as part of the SSD (unroofed decks and pergolas are excluded)
On the same lot as one existing dwelling — only one existing dwelling, and only one SSD per lot
A Class 1a building under the National Construction Code (NCC), requiring a building permit and a Registered Building Surveyor sign-off
Compliant with 7-star NatHERS energy efficiency standards plus Whole-of-Home energy requirements (from October 2023)
Compliant with the Livable Housing Design Standard (NCC 2022) — step-free entry, wider doorways and corridors, accessible toilet, reinforced bathroom walls for future grabrails
Cannot be subdivided or sold separately from the main dwelling
Cannot be connected to reticulated natural gas (banned for all new homes in Victoria under the Gas Substitution Roadmap)

Most blocks of 300 m² or larger in a General Residential Zone (GRZ), Residential Growth Zone (RGZ) or Neighbourhood Residential Zone (NRZ) with no flooding, bushfire, heritage or other special overlay can have an SSD built without a planning permit — provided siting standards are met and the existing dwelling and SSD together don’t exceed 60% site coverage. (Following Amendment VC282 in August 2025, Clause 54 generally doesn’t apply to SSDs on lots over 300 m² in residential zones — siting is assessed through the building permit.)

Where Planning Permits Are Still Required

A planning permit is still required if:

Your land has a Heritage Overlay, Bushfire Management Overlay, Flood Overlay, Significant Landscape Overlay, Land Subject to Inundation Overlay or similar planning control affecting the SSD
A restrictive covenant or Section 173 agreement on title affects the development
Your lot is under 300 m² in a residential zone (Clause 54 still applies and a planning permit is typically required)
You’re in a rural, agricultural or industrial zone rather than a residential one
The SSD design exceeds 60 m² GFA (it becomes a “second dwelling” rather than an “SSD” and triggers full planning assessment)
Existing site coverage already exceeds 60% or would be exceeded by the SSD (requires a Building Appeals Board report and consent)

The Planning Maps Online tool, available through the Victorian Government, lets you check your property’s zone and overlays in minutes. We always recommend that check before quoting demolition — the planning answer changes the timeline more than the demolition scope does.

Dependent Person’s Units (DPUs) — Still Available Until March 2027

The pre-2023 dependent person’s unit (DPU) framework was originally scheduled to be replaced entirely by the SSD framework, but transitional provisions have been extended. Under Amendments VC266 and VC304, new DPU applications can be lodged until 28 March 2027, after which the SSD framework will be the only pathway for new builds. Existing, lawful DPUs remain lawful — they don’t have to be removed or converted unless the use changes.

Practical implication for demolition: if you have an existing DPU on your block that you want to replace with a modern SSD (better thermal performance, better accessibility, no tenancy restrictions), the demolition of the old DPU is the simple part. The harder question is whether the new build qualifies for SSD treatment under the current rules.

Why Almost Every Melbourne Granny Flat Project Starts With Demolition

You’d think a 400 m² suburban block would have plenty of room to slot a 60 m² SSD into a corner without disturbing anything. In reality, almost every Melbourne block we visit needs at least one structure removed first. Here’s why:

The Setback Problem

SSDs have to meet minimum setbacks from boundaries and from the existing dwelling. A new SSD typically needs 1.0–3.0 m clearance from side and rear boundaries and 6 m+ from the existing dwelling, depending on local siting standards and any conditions in your building surveyor’s report. The “obvious” back corner where you’d put a granny flat is often occupied by an existing garage that doesn’t meet those setbacks for the new structure — or that blocks the access path required under Regulation 86B (accessible path from the street to the SSD entry).

The Site Coverage Limit

Under Victorian building regulations, total site coverage by buildings normally cannot exceed 60% of the allotment. If your existing house and outbuildings are already pushing 50–55% site coverage, adding a 60 m² SSD takes you over the line. Something has to come off the block to make room. The old garage, the carport, the rear lean-to, the shed — one or more usually has to go before the new dwelling can be approved.

The Asbestos Adjacency Problem

Even where there’s geometric room to put the new SSD next to an old asbestos garage, building near a deteriorating asbestos-cement structure creates contamination and demolition-management complications down the track. Most building surveyors, designers and council building inspectors prefer to see the asbestos structure removed before the new build begins, with a clearance certificate in the file, rather than have it sit alongside the new dwelling for another decade.

The Old DPU / Original Granny Flat Replacement

Many Melbourne blocks already have an older granny flat or DPU — built in the 1970s, 1980s or 1990s, often without modern energy or accessibility standards, sometimes with significant asbestos content of its own. Replacing it with a modern SSD requires demolishing the old structure first. Because only one SSD is permitted per lot, the old building and the new one can’t co-exist after construction.

The Foundation / Ground-Level Problem

Granny flats are Class 1a buildings under the National Construction Code and require proper engineered foundations — typically a concrete slab on engineered fill, a waffle pod system, or screw piles depending on soil conditions. Existing slabs, old footings, fence post concrete, and any buried artefacts from previous structures all need to come out of the proposed footprint. The new dwelling can’t sit on whatever’s already there.

What Gets Demolished — Scope by Scope

Here’s what each common demolition scope actually involves for a granny flat build in Melbourne in 2026.

Scope 1: Asbestos-Cement Garage

The single most common pre-granny-flat demolition in Melbourne. A typical 1950s–1980s suburban garage is a 20–35 m² structure with Super Six corrugated asbestos-cement roofing, flat fibro wall sheeting (often painted multiple times), an asbestos-cement gable end, fibro eaves, and frequently a Zelemite or Ausbestos backing board behind the meter or switchboard mounted on the garage wall.

The work involves:

A hazardous materials survey by a licensed independent assessor (typically $450–$900)
A WorkSafe Victoria notification lodged at least 5 days before Class B removal commences
Class B asbestos removal under wet methods, sheets hand-released and lowered (never dropped or broken), double-bagged in 200µm polythene
EPA Waste Tracker logging of every asbestos waste load to an authorised landfill
Mechanical demolition of any remaining structural framing, concrete slab and footings (where required)
An independent asbestos clearance certificate before any further works on the footprint

Typical 2026 cost: $4,500–$9,500 for a standard suburban single-garage scope.

The friable / non-friable distinction matters here. If the garage roof has been leaking and weather-damaged for years, or if there’s been a fire in the garage at any point, the bonded ACM may have transitioned to friable — which immediately escalates the scope to a Class A licensed removalist at roughly 2–4× the per-square-metre rate. Our Friable vs Non-Friable Asbestos in Demolition guide unpacks the distinction.

Scope 2: Fibro Shed or Backyard Workshop

The smaller cousin of the garage scope. A typical 1960s–80s fibro shed is 6–15 m² with flat fibro walls, sometimes a Super Six or galvanised iron roof, often a fibro internal lining, and a concrete pad or compacted earth floor. Many also contain decades of accumulated paint tins, chemical residues, e-waste and general clutter that need to be sorted as separate waste streams before the structural demolition.

Typical 2026 cost: $3,000–$6,500 depending on size, ACM quantity and material clear-out scope.

Scope 3: Carport or Pergola With Asbestos-Cement Panels

A frequently overlooked scope. Many 1960s–80s Melbourne carports and pergolas used asbestos-cement panels for side walls, fascia boards or even roofing in some cases. Visually they look like timber-and-iron structures, but the dimpled flat-sheet panels on the side walls or end wall are commonly fibro.

Typical 2026 cost: $2,500–$5,500 depending on ACM presence, footings to be removed and slab condition.

Scope 4: Sleep-out, Rumpus Room or Converted Outbuilding

A more involved scope, often catching homeowners by surprise. A “sleep-out” or converted garage from the 1960s–80s typically has:

Fibro cement external cladding
Internal cement-sheet wall linings (often Villaboard in the wet areas)
Asbestos-cement ceiling sheets (or a textured “popcorn” coating)
Vinyl floor tiles with asbestos-containing bituminous mastic adhesive
A Zelemite electrical backing board if it was wired as a separate space
Sometimes a fibre-cement plumbing flue from a former heater

Total ACM on a single sleep-out routinely runs 30–80 m² — comparable to a small house. The structural demolition itself is straightforward; the asbestos work drives the cost.

Typical 2026 cost: $8,000–$16,000 depending on ACM quantity, services to be disconnected, and slab/footing removal.

Scope 5: Old DPU or 1970s–90s Granny Flat

If your block already has an older granny flat or DPU that you’re replacing with a modern SSD, the demolition scope depends entirely on when it was built and what it’s made of.

1970s–1980s DPU — almost certainly contains asbestos: cement sheet eaves and cladding, fibro garage roof if attached, vinyl floor tiles, textured ceilings. Comparable in scope to a small single-storey home.
1990s prefab granny flat — mixed picture. Pre-1987 manufacturing might still have asbestos sheet products in some elements; post-1990 is usually asbestos-free except for legacy materials like older switchboard backings.
2000s–2010s modular DPU — typically asbestos-free, lighter demolition scope, faster timeline.

Typical 2026 cost: $10,000–$22,000 depending on era, ACM, services, slab condition and access.

Scope 6: Swimming Pool, Spa or Pool House

A separate methodology entirely. Removing an in-ground pool involves:

Plumbing decommissioning — filtration, pump, heater, salt chlorinator, light fittings
Electrical decommissioning — pool circuit isolation, equipment removal
Pool fence removal — temporary fencing may be required during the works to maintain barrier compliance until the void is filled
Demolition of the pool shell — typically broken up in place using an excavator with hydraulic breaker
Backfill with engineered fill, layered and compacted to engineering specification
Validation that the backfilled area is suitable for the SSD footprint (if the new dwelling sits over part of the former pool zone, additional geotechnical work is essential)

Typical 2026 cost: $8,000–$22,000 for a standard residential in-ground pool removal and backfill.

Scope 7: Partial Demolition of the Existing House

Where the SSD is being built attached to the existing dwelling (e.g. as a self-contained extension to the side or rear), part of the original house may need to be demolished first — typically a rear extension, a side lean-to, an old laundry or a poorly-built addition.

This is partial demolition territory, with all the engineering complexity that comes with it: temporary propping, dilapidation surveys, structural engineering sign-off on the demolition boundary, and careful sequencing to keep the retained portion weatherproof and stable. Our Partial Demolition: When Removing Half a House Makes Sense guide walks through this in depth.

Typical 2026 cost: $15,000–$35,000+ depending on scope, retention engineering and ACM in the demolished section.

Permits and Approvals for Granny Flat Demolition in Melbourne

This is where the news is good for homeowners. Demolition for a granny flat or SSD in Melbourne is generally simpler and faster to get permitted than a full house knock-down rebuild — provided your contractor knows the framework and lodges everything correctly.

Section 29A Demolition Consent — Usually Not Required for Outbuildings

The Section 29A consent under the Building Act 1993 is the council consent triggered by demolition of buildings or parts of buildings meeting either the 50% volume test or the facade test. For most pre-granny-flat demolitions, Section 29A is not required because:

Outbuildings (garages, sheds, carports, sleep-outs, old DPUs) are typically separate buildings, not parts of the main dwelling — so neither test applies to them.
No street-facing facade of the main dwelling is being touched.
No more than 50% of the main dwelling’s volume is being demolished (in most cases, none of it is).

The exception is where the structure to be demolished sits within a Heritage Overlay precinct that explicitly covers outbuildings — some inner-Melbourne heritage overlays in Yarra, Stonnington, Boroondara, Port Phillip, Melbourne and Bayside councils do, and the schedule rather than the overlay itself is what to read.

For partial demolitions of the existing house (Scope 7 above), Section 29A is usually required because the partial demolition affects the main dwelling. Our What Is a Demolition Consent guide covers the two tests in detail.

Building Permit for Demolition — Always Required

Every demolition in Victoria — whether it’s a full house or a single back-yard shed — requires a building permit for demolition issued by a Registered Building Surveyor (RBS) under the Building Act 1993. The surveyor checks that all upstream approvals are in place (Section 29A where required, asset protection permit, asbestos arrangements, public protection, service disconnections, worker safety documentation) before issuing.

For a single outbuilding demolition, the building permit application is relatively straightforward and turnaround is usually 1–2 weeks once the document pack is complete.

Asset Protection Permit — Almost Always Required

Almost every metropolitan Melbourne council requires an asset protection permit for any demolition involving heavy plant on the property, to safeguard footpaths, kerbs, nature strips, street trees and drainage pits. Fees range from around $323 in outer growth councils like Wyndham to $465+ in inner councils like Hume. Inner-east councils (Boroondara, City of Melbourne, Yarra, Stonnington, Port Phillip) often charge a permit fee plus a separately-calculated security bond.

For a small back-yard demolition where the truck doesn’t park on council land and no plant crosses the nature strip, some councils will waive the asset protection bond — but the permit itself is almost always required.

Service Disconnections — Where Applicable

If the structure being demolished is wired with active electricity (most garages, sleep-outs, sheds with power, old DPUs and pool houses are), the supply must be isolated and capped by a licensed electrician before demolition starts. Where the structure has its own meter or sub-board feeding off the main, the disconnection may need to be lodged with the electricity distributor. The same applies to water, gas (if any) and telecoms where they serve the structure independently. Lead times typically run 1–4 weeks depending on the utility. Our How We Disconnect Utilities Before Demolition guide walks through the process.

For a simple shed with no services, this stage skips entirely.

Planning Permit — Only If Overlays Apply

Even though the SSD itself is generally planning-permit-exempt on a 300 m²+ residential lot, a planning permit for the demolition can still be triggered if:

The structure being demolished is in a Heritage Overlay precinct that covers outbuildings
The site has a Vegetation Protection Overlay (VPO) affecting trees that the demolition would impact
The site has a Significant Landscape Overlay (SLO) with provisions affecting outbuildings
The site has a Bushfire Management Overlay (BMO) where the demolition works affect bushfire defendable space
A covenant or Section 173 agreement on title restricts development in a way the demolition affects

For most standard suburban back-yard demolitions, planning permits do not apply. But verify against the property — five minutes on Planning Maps Online is the easiest insurance you’ll buy.

Asbestos in Your Old Backyard Structures — The Hidden Cost That Catches Homeowners Out

If your Melbourne home (or its back-yard outbuildings) was built or significantly altered before 31 December 2003, assume asbestos is present until a hazardous materials survey says otherwise. For back-yard structures built between the 1950s and 1980s, the question isn’t whether there’s asbestos. It’s where, how much, and what licence class is needed to remove it.

This is where 80% of homeowner-quoted “$3,000 to knock down the garage” pricing falls apart.

What’s Almost Certainly Hiding in Your Old Backyard Structure

For pre-1990 Melbourne outbuildings, we routinely find:

Super Six corrugated asbestos-cement roofing — the standard residential garage roof of the 1950s–80s. Identifiable by the grey colour, the 6-inch corrugation profile and the slightly rough texture on the underside.
Flat fibro wall sheeting — exterior cladding, painted multiple times, with a dimpled pattern visible on the rear face.
Asbestos-cement gable ends — the triangular wall at the top of a pitched-roof garage.
Fibro eaves and fascia boards — the soffit under the roof overhang and the vertical board at the roof edge.
Internal cement-sheet wall linings — particularly in sleep-outs, converted garages and old laundries.
Asbestos-cement ceiling sheets — flat boards forming the ceiling of older garages and sheds.
Textured “popcorn” ceiling coatings — in 1970s sleep-outs and rumpus-room conversions.
Vinyl floor tiles with asbestos-containing bituminous mastic adhesive — particularly in converted sleep-outs and old DPUs.
Zelemite or Ausbestos electrical backing boards — the dark composite board behind the switchboard or meter, drilled into the garage wall.
Fibro garage doors — some older roller-door surrounds and tilting garage doors contained ACM.
Asbestos-cement fencing — common along the boundaries closest to where the new SSD will sit.
Old hot water service flue linings in sleep-outs and outbuildings that had their own water heating.

A single asbestos-cement garage in Melbourne typically presents 40–80 m² of ACM by surface area. A sleep-out with internal linings can run 60–120 m². An old DPU can run 120–250 m² — more than many small houses.

For era-by-era detail, see our Asbestos in 1950s–1980s Melbourne Homes: What’s Likely Hiding guide.

Why the DIY “I’ll Just Pull the Sheets Off On The Weekend” Plan Doesn’t Work

We hear this almost weekly. “It’s just my old garage in my own back yard — surely I can just take the sheets off myself to save on the asbestos line item.”

Three problems with that plan:

The legal exemption is tiny. Under Victorian OHS Regulations 2017, an unlicensed person can remove less than 10 m² of non-friable ACM in less than one hour in any 7-day period. A standard residential garage with full cladding and roofing is vastly larger than that exemption — five to ten times larger in most cases. Removing it without a licence is a duty breach.
Breaking ACM contaminates your soil. Snapping cement sheets, drilling old fixings, sanding edges or hitting sheets with hammers all generate friable fibres that settle on the soil, on adjacent fences, on neighbours’ properties and on the new SSD footprint. The new build then has to start with a contaminated-soil scope at $80–$180 per cubic metre — a far larger cost than doing it properly the first time.
You can’t get a clearance certificate. The independent asbestos clearance certificate is the document your Registered Building Surveyor will ask for before signing off the new SSD building permit, and the document a future purchaser of the property will ask for during conveyancing. DIY removal doesn’t generate one. The site is then permanently flagged as having undocumented asbestos work, which costs money to resolve later.

The full risk picture is in our Asbestos in Melbourne Homes: How to Identify Before Demolition guide.

Why In-House Class B Capability Changes the Maths

When the demolition contractor and the asbestos removalist are the same business, the granny-flat-prep demolition runs cleaner and cheaper. One survey, one SWMS, one WorkSafe notification, one EPA Waste Tracker producer entry, one clearance certificate, one documentation pack. The 15–30% co-ordination premium that builds up when demolition is one company and asbestos removal is another isn’t recoverable when the new SSD build starts — it’s just gone. We hold the Class B (non-friable) licence in-house, which is the class that covers virtually every standard backyard outbuilding demolition.

For verification on any contractor you’re considering, our Licensed Asbestos Removal Victoria: How to Verify Your Contractor guide walks through the 30-minute due diligence process.

What Does Demolition for a Granny Flat Cost in Melbourne in 2026?

Costs vary inside a predictable range. Here are the working numbers for metropolitan Melbourne in 2026, assuming a fully licensed contractor, full WorkSafe and EPA compliance, lawful disposal at authorised facilities, and a clean documentation pack at handover.

Demolition Scope	Typical 2026 Cost Range
Single asbestos-cement garage (standard suburban scope, Class B asbestos)	$4,500–$9,500
Fibro garden shed (small, under 15 m²)	$3,000–$6,500
Carport or pergola with ACM panels	$2,500–$5,500
Sleep-out or rumpus conversion (ACM-heavy)	$8,000–$16,000
1970s–80s DPU or older granny flat replacement	$10,000–$22,000
In-ground swimming pool removal and backfill	$8,000–$22,000
Spa removal	$1,500–$4,500
Partial demolition of existing house (rear extension, lean-to)	$15,000–$35,000+
Asbestos boundary fence replacement allowance	$60–$140 per linear metre
Concrete slab and footing removal in proposed SSD footprint	$80–$200 per m²
Hazardous materials survey	$450–$900
Independent asbestos clearance certificate	$300–$700
Asset protection permit + bond (where required)	$323–$465 permit; bond $0–$5,000 council-dependent
Building permit for demolition	$400–$1,200 depending on RBS and scope

Multi-Asset Scopes — The Most Common Real-World Pattern

Most granny-flat-prep demolitions in Melbourne aren’t a single asset. They’re two or three structures coming down together: an old garage plus a fibro shed, or a sleep-out plus a carport, or an old DPU plus a section of asbestos fencing. The 2026 cost ranges for typical combined scopes:

Garage + shed combined: $7,500–$14,000
Garage + section of ACM fence: $6,000–$12,500
Sleep-out + carport + ACM fence: $13,000–$22,000
Old DPU + concrete pad + driveway section: $15,000–$28,000

What Pushes a Project Up the Range

Inner-east or bayside location — higher asset protection bonds, slower council turnaround, more careful machine work next to neighbours, sometimes Heritage Overlay capture of outbuildings
Significant ACM quantity — full cladding plus roofing plus internal linings plus floor tiles
Tight back-yard access — narrow side passages limit truck and machine size; some sites require hand-loading to a smaller machine staged at the kerb
Multiple separate structures — each one needs its own mobilisation cycle even if the demolition team is the same
Concrete slabs and footings to depth — old garage slabs often have 100–150mm of concrete plus strip footings 400–600mm deep
Friability transition — fire-damaged or severely weathered ACM that’s no longer bonded
Heritage Overlay in inner-Melbourne suburbs that captures outbuildings

What Sits a Project at the Lower End

Outer growth corridor location (Wyndham, Casey, Cardinia, Melton, Hume) — faster council turnaround, simpler asset protection, generous truck access
Single, clearly defined outbuilding with bonded ACM in stable condition
Direct back-yard access for the truck and machine
Concrete slab can stay because the new SSD will sit elsewhere on the block
Post-1990 outbuilding with minimal or no ACM

For the broader cost framework on the asbestos line, our Cost of Asbestos Removal in Melbourne and Why It Varies guide unpacks the per-square-metre rate structure.

Timeline: From Decision to Cleared Site for Your Granny Flat

Granny-flat-prep demolitions are some of the faster scopes we run in Melbourne. A typical timeline:

Week 1: Site Inspection and Quote

Free site inspection by a licensed contractor
Walk-through with photos of every structure being demolished
Fixed-price written quote within 1–5 business days

Weeks 1–2: Hazardous Materials Survey

Independent licensed assessor visits the property
6–12 samples typically taken (more for larger or more complex structures)
NATA-accredited lab analysis (5–7 day turnaround)
Survey report identifies every ACM, friability classification, and removal method

Weeks 2–4: Permits and Notifications

Building permit for demolition lodged with the Registered Building Surveyor
Asset protection permit lodged with council
WorkSafe Victoria asbestos removal notification lodged at least 5 days before Class B removal commences
Service disconnections lodged in parallel with utilities (where applicable)
EPA Waste Tracker producer registration for asbestos waste

Week 4–5: Site Setup and Soft Strip

Site fencing and signage installed
Hoarding, dust controls and stormwater protection in place
Salvage of any retained items (gates, garden ornaments, salvageable timber)
Soft-strip of any internal fixtures and fittings

Week 5: Asbestos Removal

Class B licensed crew on site
Wet methods, controlled removal, double-bagged waste
EPA Waste Tracker logged for every load
Independent licensed assessor visual clearance issued

Week 5–6: Mechanical Demolition and Slab Removal

Excavator brought to site
Remaining structural framing taken down
Concrete slabs and footings removed (where in scope)
Foundation pads and post holes broken out

Week 6: Site Grading and Final Clean

Site graded to finished floor level for the proposed SSD
All waste streams removed and weighbridge dockets retained
Documentation pack assembled
Final inspection with homeowner

Total: 4–6 weeks for a standard single-outbuilding scope

Multi-asset scopes (garage + shed + fence) typically run 5–7 weeks end-to-end. Sleep-out or DPU scopes typically run 6–8 weeks. Partial-demolition-of-house scopes typically run 8–12 weeks because of the additional engineering, Section 29A consent and surveyor sign-off.

A licensed contractor running multiple workstreams in parallel rather than sequentially shaves 2–4 weeks off these timelines compared to a contractor who runs each stage sequentially. Our From Quote to Cleared Site: Realistic Demolition Timeline guide unpacks the parallel-vs-sequential question in depth.

Common Mistakes Homeowners Make With Granny Flat Demolition

After clearing hundreds of Melbourne back yards for granny flat builds, the same handful of mistakes keep appearing. Every one of them is expensive. Every one of them is avoidable.

Mistake 1: Treating the demolition as an afterthought to the granny flat build

The granny flat designer or builder quotes the SSD; the demolition gets a vague “allowance” line that turns out to be a fraction of the real cost. Get a separate, fixed-price demolition quote from a licensed contractor before signing the build contract.

Mistake 2: Assuming the old garage is “just a garage”

A 1965 fibro garage on a Melbourne block is, in regulatory terms, a structure containing significant non-friable ACM. The asbestos removal alone is the largest single line item. Pricing the demolition as if it’s a 2010 Colorbond garage is the single most common budgeting error we see.

Mistake 3: DIY-removing “just the eaves” or “just one wall” to save money

Every fibro sheet you snap off generates fibre release, soil contamination and a duty breach. The asbestos line item doesn’t go away — it just gets larger when the licensed crew has to remediate your DIY contamination on top of the original scope.

Mistake 4: Forgetting to check overlays before locking in the design

A bushfire or heritage overlay can turn a no-planning-permit SSD into a 4-month planning permit job. Check Planning Maps Online before the designer starts drawings.

Mistake 5: Not checking site coverage before designing the SSD

If your existing house plus outbuildings already pushes 55% site coverage, an additional 60 m² SSD might exceed the 60% limit unless something comes down first. The demolition scope might be larger than the homeowner initially thought.

Mistake 6: Using a residential demolisher with no Class B asbestos capability

Subcontracting the asbestos to a separate business adds 15–30% to the cost, fragments the documentation, and routinely causes scheduling conflicts. In-house Class B is the single biggest efficiency lever on granny-flat-prep demolition pricing.

Mistake 7: Ignoring the asbestos fence along the SSD-side boundary

The SSD will be built within 1.0–3.0 m of the side and rear boundaries. If those boundaries have asbestos-cement fencing, the new construction work will inevitably disturb it — either now during the SSD build, or later when the fence finally fails. Removing it as part of the demolition scope while the contractor is on site is dramatically cheaper than removing it as a standalone job later.

Mistake 8: Skipping the clearance certificate

The independent asbestos clearance certificate is the document your building surveyor will request before issuing the SSD building permit and the document any future buyer’s conveyancer will ask for. Skipping it now creates a paperwork problem later that costs more than getting it the first time.

Mistake 9: Not checking what’s under the old slab

Old garage and shed slabs often hide buried fence post concrete, abandoned plumbing, old septic systems, soakpits and the occasional buried fuel tank. The new SSD footings can’t go in until these are out. A pre-quote walkover catches most of them; the rest are managed under a written variation process in the contract.

Mistake 10: Engaging the demolition contractor too late in the program

Some homeowners assume the demolition can be slotted in “any time before the slab pour.” In reality, the building permit for the SSD won’t issue until the proposed footprint is documented as clear and the asbestos clearance certificate is in the file. Engaging the demolisher 8–10 weeks before the desired slab date is the realistic lead time.

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Frequently Asked Questions

Do I need a planning permit for a granny flat in Victoria?

Usually no, under the rules introduced by Amendment VC253 on 14 December 2023. A small second dwelling of up to 60 m² gross floor area on the same lot as an existing dwelling, in a General Residential Zone, Residential Growth Zone or Neighbourhood Residential Zone on a lot of 300 m² or larger, generally doesn’t require a planning permit — provided no Heritage Overlay, Bushfire Management Overlay, Flood Overlay, Significant Landscape Overlay, restrictive covenant or Section 173 agreement applies, and provided siting standards and the 60% site coverage limit are met. A building permit is always required regardless. Confirm against the property at Planning Maps Online or with your council.

Do I need a permit to demolish my old garage to make space for the granny flat?

Yes, you need a building permit for demolition issued by a Registered Building Surveyor — even for a small back-yard structure. Section 29A consent is usually not required for outbuildings, because they’re typically separate buildings rather than parts of the main dwelling (neither the 50% volume test nor the facade test applies). You’ll also need an asset protection permit from your council in almost all cases, WorkSafe Victoria asbestos removal notification lodged at least 5 days before any Class B work, and full EPA Waste Tracker compliance for the asbestos waste.

How much does it cost to demolish a garage for a granny flat in Melbourne?

For a standard suburban asbestos-cement garage demolition in Melbourne in 2026, expect $4,500–$9,500 with Class B asbestos removal, full WorkSafe and EPA compliance, asset protection permit and an independent clearance certificate. Larger combined scopes (garage + shed, or garage + asbestos fence + carport) typically run $7,500–$16,000. Anything quoted significantly below these ranges has compliance corners being cut — usually the asbestos line, the disposal pathway, or the clearance certificate.

Is there asbestos in my old backyard garage or shed?

Almost certainly, if it was built or significantly altered before 2003 — and effectively guaranteed in pre-1990 construction. Standard ACM sources in Melbourne back-yard structures: Super Six corrugated asbestos-cement roofing, flat fibro wall cladding, asbestos-cement gable ends, fibro eaves, internal cement-sheet linings, textured ceiling coatings (1970s+), vinyl floor tiles with asbestos-containing adhesive, Zelemite electrical backing boards, and asbestos-cement fencing along the boundaries. The Victorian asbestos ban for new use didn’t fully come into force until 31 December 2003, and pre-1990 residential outbuildings were ACM-rich by default.

Can I just take the asbestos sheets off my own garage to save money?

Legally, no — not for a structure as large as a typical garage. The Victorian unlicensed-removal exemption allows non-friable ACM removal only where the total area is less than 10 m² and the work takes less than one hour in any 7-day period. A standard Melbourne residential garage has 40–80 m² of ACM — five to eight times the exemption limit. Beyond the legal issue, DIY removal generates fibre release that contaminates soil, neighbouring properties and the proposed SSD footprint, and produces no clearance certificate, which causes problems at the building permit stage and at future conveyancing.

What is the difference between a granny flat, a DPU, an SSD and a secondary dwelling?

Granny flat is the common name; small second dwelling (SSD) is the current Victorian planning term (post-December 2023); dependent person’s unit (DPU) is the pre-2024 framework still available for applications until 28 March 2027; secondary dwelling is a generic term sometimes used in older lease and council documents. Functionally, the SSD framework allows up to 60 m² of self-contained second residence on the same lot as an existing home, with no tenancy restrictions (unlike DPUs, which required occupation by a person dependent on a resident of the main dwelling). For new builds in 2026, the SSD framework is the dominant pathway.

Can I demolish an existing granny flat and build a new SSD in its place?

Yes — this is increasingly common as 1970s–90s DPUs are replaced with modern compliant SSDs. The demolition follows the same framework as any other outbuilding: building permit for demolition, asset protection permit, asbestos survey, Class B licensed removal, EPA Waste Tracker compliance, clearance certificate. The old DPU’s slab is sometimes retained if the new SSD design accommodates it, but more often the slab comes out too because the new SSD design has different footprint, services routing, foundation requirements and accessibility provisions.

How long does the demolition take before my granny flat builder can start?

For a standard single-outbuilding demolition (e.g. asbestos-cement garage): 4–6 weeks end-to-end from contract signing, including survey, permits, asbestos removal, mechanical demolition and clearance. For multi-asset scopes (garage + shed + fence): 5–7 weeks. For sleep-out or DPU replacement scopes: 6–8 weeks. For partial demolition of the existing house: 8–12 weeks because of Section 29A consent and engineering. The actual on-site work is typically only 3–10 days; the rest is permits, surveys, notifications and lab turnaround.

Do I need to disconnect electricity and water from my old garage before demolition?

Yes — any active services must be lawfully isolated and capped before demolition starts. A licensed electrician isolates and caps the power supply (and lodges disconnection paperwork with the distributor where the structure has its own meter or sub-feed). Water, gas and any other services to the structure are capped at the appropriate isolation point. For a simple shed with no services, this stage skips entirely. Your demolition contractor should coordinate the service trades as part of the scope.

What happens if my old garage shares a wall with my neighbour’s property?

A party-wall or boundary-adjacent demolition requires extra engineering and neighbour engagement. A dilapidation survey of the adjoining structure should be done before works start — photographic and written record of existing condition, so that any “damage” claimed later can be assessed against the pre-existing state. Temporary weatherproofing is often required at the demolition boundary. Some councils require written notice to the adjoining owner. A residential demolition contractor with multi-asset experience handles this routinely; a low-cost generalist often doesn’t.

What documentation should I receive at the end of the demolition?

A properly run granny-flat-prep demolition hands you a documentation pack including: the hazardous materials survey, the site-specific Safe Work Method Statement (SWMS), the WorkSafe Victoria asbestos removal notification confirmation with reference number, every EPA Waste Tracker record, all weighbridge dockets and disposal receipts, the independent licensed assessor’s asbestos clearance certificate, electrical isolation and capping certificates, the contractor’s public liability insurance certificate, and before-and-after photographs. Keep this pack for at least 5 years (we recommend 7). Your building surveyor will request it at SSD building permit stage; any future purchaser’s conveyancer will ask for it during settlement.

Can the same contractor do the demolition and the granny flat build?

Some can, most don’t. Demolition (with asbestos removal) and SSD construction (with NCC 7-star energy compliance, Livable Housing Design Standard, accessibility provisions) are different trade disciplines, different licensing categories and different insurance classes. Most Melbourne homeowners engage a licensed demolition contractor for the clearing phase and a separate registered builder for the SSD. The handover between them — with a clean documented site and a clearance certificate — is where compliant project management pays for itself.

My granny flat will be built on the slab of the old garage. Does the slab need to come out?

Sometimes — depends on the engineering. Existing slabs are rarely engineered to the standard required for a modern Class 1a Class 1a dwelling (which the SSD will be). Sometimes the existing slab can be retained as a base layer with new engineered footings added; more often it has to come out and be replaced with a new slab designed by an engineer to the soil conditions and the SSD’s loadings. Your structural engineer or building surveyor makes the call. If the existing slab stays, the demolition cost is lower; if it comes out, expect $80–$200 per square metre of slab removal added to the demolition quote.

What about the old swimming pool I want to demolish for the granny flat?

Pool removal is a specialised scope. Plumbing decommissioning, electrical isolation, pool shell breaking, engineered backfill and validation if the SSD is going to sit over the former pool zone. Typical 2026 cost: $8,000–$22,000 for a standard residential in-ground pool. Where the SSD footprint sits over part of the former pool zone, a geotechnical report and engineered slab design are essential — building on poorly compacted backfill is the most common cause of slab failure in former-pool SSD builds.

Can I save money by clearing out the inside of the garage myself before the demolition crew arrives?

Yes, and we encourage it for non-ACM items. Anything inside the structure that you can salvage, sell or send to general waste before the demolition crew arrives is cost the contractor doesn’t have to charge for. Tools, garden equipment, paint tins (taken to a household chemical drop-off), e-waste (to e-waste recyclers), timber off-cuts, cardboard, garden waste — clearing those is genuine homeowner savings. What you cannot do is touch any fixed ACM (cladding, roofing, ceiling sheets, electrical backing boards, floor tiles) — that’s licensed work, and any DIY contact contaminates the rest of the site.

Get a Compliant Melbourne Granny Flat Demolition Quote

We’re a fully licensed Melbourne demolition company with Class B (non-friable) asbestos removal capability held in-house — meaning your granny flat preparation, your asbestos removal, your EPA Waste Tracker compliance, your asset protection permit, your service disconnections, your independent clearance certificate and the full handover documentation pack are all delivered under one insured roof, across every metropolitan Melbourne council and regional Victorian centre.

We run granny flat and small second dwelling preparation demolitions across:

Inner Melbourne: Carlton, Fitzroy, Collingwood, Richmond, North Melbourne, Kensington, Flemington, Albert Park, Middle Park, South Melbourne, Port Melbourne, St Kilda, Windsor, Prahran
Inner-east: Hawthorn, Hawthorn East, Kew, Camberwell, Balwyn, Balwyn North, Surrey Hills, Canterbury, Glen Iris, Malvern, Malvern East, Armadale, Toorak, Caulfield, Caulfield North, Elsternwick
Inner-north: Brunswick, Brunswick East, Brunswick West, Coburg, Pascoe Vale, Fawkner, Northcote, Thornbury, Preston, Fairfield, Alphington, Reservoir, Heidelberg, Ivanhoe, Eaglemont
Inner-west: Footscray, West Footscray, Yarraville, Seddon, Spotswood, Newport, Williamstown, Maribyrnong, Maidstone, Sunshine, Ascot Vale, Moonee Ponds, Essendon
Bayside and south-east: Brighton, Hampton, Sandringham, Black Rock, Beaumaris, Cheltenham, Mentone, Mordialloc, Parkdale, Edithvale, Aspendale, Chelsea, Bonbeach, Carrum, Seaford, Frankston
Middle east: Box Hill, Box Hill North, Box Hill South, Mont Albert, Blackburn, Burwood, Burwood East, Forest Hill, Vermont, Mitcham, Nunawading, Mt Waverley, Glen Waverley, Wheelers Hill, Mulgrave, Notting Hill, Clayton, Oakleigh, Bentleigh, Bentleigh East, McKinnon, Ormond, Murrumbeena, Carnegie
Outer east and south-east: Doncaster, Templestowe, Bulleen, Donvale, Park Orchards, Ringwood, Croydon, Lilydale, Bayswater, Boronia, Ferntree Gully, Knoxfield, Rowville, Lysterfield, Endeavour Hills, Narre Warren, Berwick, Cranbourne, Pakenham, Officer
Outer north: Craigieburn, Mickleham, Donnybrook, Wollert, Mernda, Doreen, Whittlesea, Epping, Lalor, Mill Park, Bundoora
Outer west (growth corridor): Sunshine, St Albans, Werribee, Hoppers Crossing, Point Cook, Tarneit, Truganina, Williams Landing, Wyndham Vale, Melton, Caroline Springs, Burnside, Plumpton
Mornington Peninsula: Mornington, Mt Eliza, Mt Martha, Dromana, Rosebud, Rye, Sorrento, Portsea
Regional Victoria: Geelong, Ballarat, Bendigo, Yarra Ranges, Macedon Ranges, Surf Coast

Whether your granny flat project involves:

A 1960s asbestos-cement garage demolition in Reservoir, Sunshine, Heidelberg, Footscray or Frankston
A fibro shed and old carport clearance in Bentleigh, Cheltenham, Mordialloc or Mentone
A sleep-out or rumpus conversion demolition in Box Hill, Glen Waverley, Mt Waverley or Camberwell
An older DPU replacement in Hawthorn, Kew, Brighton or Caulfield
A swimming pool removal to free up the SSD footprint anywhere across metro Melbourne
A partial demolition of the existing house to build an attached SSD in Brunswick, Northcote, Yarraville or Newport
A growth-corridor backyard clearance in Tarneit, Werribee, Point Cook, Cranbourne, Berwick, Mickleham or Officer
A bayside granny flat preparation in Brighton, Hampton, Sandringham, Beaumaris or Mt Eliza

…we’ll handle the building permit for demolition, the asset protection permit, the licensed asbestos removal, the EPA waste compliance, the service disconnections, the engineered demolition (where partial-house scope applies), the clearance certificate and the careful, compliant clearing of your back yard — properly, the first time, with a fixed-price written quote that doesn’t leave anything to mid-project surprise.

Call us today for a free site inspection and an itemised granny flat demolition quote — and start your SSD project with a clean, documented site that your builder can begin slab works on the moment the SSD building permit issues.

Disclaimer: This guide summarises demolition methodology and compliance obligations for granny flat and small second dwelling preparation in metropolitan Melbourne and regional Victoria as of May 2026 in plain English. It is not legal, planning, building, structural or compliance advice. Planning and building regulations change regularly, council policies vary, and the specifics of your property’s zoning, overlays, restrictive covenants, Section 173 agreements and site coverage are uniquely yours. Always check the current Building Act 1993, Building Regulations 2018, OHS Act 2004, OHS Regulations 2017, WorkSafe Victoria Compliance Code: Demolition, Environment Protection Act 2017, Environment Protection Regulations 2021, the Victoria Planning Provisions (including Amendments VC253, VC266, VC282 and VC304), the National Construction Code 2022 and your local council planning scheme, or consult a qualified town planner, registered building surveyor, structural engineer, licensed demolition contractor or OHS professional, before relying on this information for a specific project. Fee unit values reset on 1 July each year.