Last Friday, the Queensland Government unveiled its first emergency housing measure, enabling secondary dwellings to be made available to people other than immediate family members. 

“I know the rental market is tough and, right now, homeowners can’t rent secondary dwellings to anyone other than immediate family,” Queensland Premier Annastacia Palaszczuk said.

“Changing this will mean many cheaper properties will enter the rental market, helping thousands of people across our state.”

Queensland Deputy Premier Dr Steven Miles said the new initiative will allow homeowners to earn rent and ease the pressures of cost of living. 

REIQ CEO Antonia Mercorella welcomed the State Government’s granny flat solution.

“We know finding immediate solutions is very challenging in the current market given the backdrop of the construction crisis, so the ability to open up the option of granny flats to people outside of immediate family members is a great way we can make a considerable difference today,” Ms Mercorella said.

“It opens up new avenues to housing that are certainly much better than seeing people in our community facing homelessness or living in cars, tents, and hotel rooms.”

According to figures from SQM Research, the Brisbane's vacancy rate held steady in August at 0.7% - the third-lowest in the country behind Darwin and Hobart, and tighter than the national average of 0.9%.

Meanwhile, PIPA’s Annual Investor Sentiment Survey found nearly 30% of rental dwellings have been stripped from the Queensland property market over the last two years.

What you need to know before renting out your granny flat

While Ms Mercorella said Queensland needs every available property on the market, there are some elements to watch out for with these new planning changes.

“We appreciate that sometimes red tape gets in the way of creative solutions, but equally, we don’t want to see a 'free for all' where there’s no regulation, leaving people vulnerable to being exploited,” she said.

“For example, we don’t want people to think they can suddenly use inappropriate structures such as garden sheds or garages and pass these off as granny flats.

“We’d also issue a word of warning to homeowners - it’s important to do your research to understand the potential tax implications that this could create, in terms of capital gains tax at the time of sale, as well as potentially triggering land tax liabilities under recent land tax reforms.”

This comes as the Queensland Government introduced new tax brackets for Queensland residents holding property investments interstate, of which the REIQ has been highly critical.


Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.19% p.a.
6.58% p.a.
Principal & Interest
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6.29% p.a.
6.20% p.a.
Principal & Interest
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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