The ACT Legislative Assembly has passed the Planning (Missing Middle Housing) Amendment Bill 2026. The Bill changes how small subdivisions, block consolidations and some lease changes are assessed, and it lets every single-dwelling Crown lease include a secondary residence such as a granny flat.
The Bill was introduced on 24 March 2026 by Planning Minister Chris Steel. It passed the Assembly on 21 October 2026. It sits alongside the Missing Middle zoning changes to the Territory Plan, which commenced on 1 July 2026 and opened RZ1 and RZ2 blocks to more low-rise housing.
What changes for subdivision
Until now, subdividing or consolidating a typical residential block counted as significant development. That meant a 60 working day decision timeframe and two rounds of public notification.
The Bill narrows the definition so that only proposals that also create or remove public roads stay in that category. The explanatory statement says this essentially limits it to estates and large urban infill projects.
How long will a small subdivision take to assess in the ACT? Under the Bill, small subdivisions and consolidations of typical residential blocks are no longer significant development, so they move from the 60 working day timeframe to the 30 to 45 working day timeframe that applies to other development, with one round of public notification instead of two.
| Small subdivision or consolidation | Before | Under the Bill |
|---|---|---|
| Classed as significant development | Yes | No |
| Decision timeframe | 60 working days | 30 to 45 working days |
| Public notification | Two rounds | One round |
Granny flats and lease changes
Section 276 of the Planning Act 2023 is amended so that all single-dwelling leases permit a secondary residence by default. Owners no longer need a lease variation, and the public notification that came with that process falls away. A development application is still needed for the building itself unless the use is exempt.
Can I subdivide off a granny flat in the ACT? No. The explanatory statement says secondary residences remain subordinate to the main dwelling and cannot be separately titled. The change removes the need for a lease variation, not the rules on titles.
The Bill also creates an exempt declaration pathway for some lease variations, including changing the maximum number of dwellings. The Territory Planning Authority must decide these within 10 working days, and a declaration expires three years after it is made. Exempt variations are not publicly notified and carry no third-party appeal rights. A development application is still required for the design and siting of any extra homes.
When it applies
When do the changes start? The Bill says the Act commences on the day after its notification day. As at 30 October 2026, the ACT Legislation Register lists the Bill as passed on 21 October 2026 with the Act awaiting notification, so check the register for the notified Act and its commencement date.
The Property Council of Australia welcomed the Bill on 21 October 2026, describing it as practical reform that makes it easier to turn the new planning rules into homes.
What it could mean for your block
For many Canberra owners the bigger change came on 1 July 2026, when RZ1 blocks became eligible for subdivision under the Missing Middle reforms. This Bill shortens the approval path for those smaller subdivisions. It does not change the Territory Plan rules on lot size, frontage or design that a proposal still has to meet.
- Read our earlier article on the RZ1 subdivision changes and our ACT subdivision guide.
- Follow the ACT Planning Missing Middle page for implementation updates.
- You can check your own block with Subdivision Checker.
- A licensed surveyor or town planner can confirm what applies to your land.
Frequently asked questions
How long will a small subdivision take to assess in the ACT?
Under the Bill, small subdivisions and consolidations of typical residential blocks are no longer significant development, so they move from the 60 working day timeframe to the 30 to 45 working day timeframe that applies to other development, with one round of public notification instead of two.
Can I subdivide off a granny flat in the ACT?
No. The explanatory statement says secondary residences remain subordinate to the main dwelling and cannot be separately titled. The change removes the need for a lease variation, not the rules on titles.
When do the changes start?
The Bill says the Act commences on the day after its notification day. As at 30 October 2026, the ACT Legislation Register lists the Bill as passed on 21 October 2026 with the Act awaiting notification, so check the register for the notified Act and its commencement date.
Sources
- Planning (Missing Middle Housing) Amendment Bill 2026 – ACT Legislation Register
- Explanatory statement – ACT Legislation Register
- Missing Middle Housing Reforms – ACT Planning
- Enabling more Missing Middle housing for Canberrans, 24 March 2026 – ACT Government
- Missing Middle red tape cut as housing reforms clear Assembly – Property Council of Australia
- Assembly passes faster housing approval laws – Canberra CityNews
This article is general information only, current at 30 October 2026. Speak to a licensed surveyor or town planner about your property.