Granny flats under new build rules

Question

Senator BRAGG: I've had a look at a lot of different houses, for my sins, over the past few years. One of the things I've found is that a granny flat can be lots of different things. Your legislation says that a boat is out-fair enough. You can't be a hotel or motel. That's out. I'm not sure there are any motels anymore, anyway. There are maybe a few. Senator Gallagher: There are. Senator BRAGG: And then a mobile tiny home is out. A mobile tiny house is out, but a granny flat could be a mobile tiny house. Is a granny flat in or out? Ms Wilkinson: As I say, the explainer says that a granny flat built adjacent to established property that is not eligible for negative gearing would not be eligible. Senator BRAGG: But the minister said that they were in. Ms Wilkinson: I'm sorry, Senator; that's what the explainer says. The regulation that will determine the definition of a new build will outline all of these details. Senator BRAGG: Just to clarify-I have to understand this-the minister told the House of Representatives that a granny flat was in. Is that wrong? Senator Gallagher: My understanding is the answer to that question was, as she said, that a new build would be classified as-I don't have the exact words before me-one that genuinely adds to supply of housing. I'm not sure if she did say that. Ms Wilkinson: Senator, I've just provided to you the information that's in the tax explainer, but I am happy to take it on notice, and my colleagues in Revenue Group can provide more detail later tonight, if any other finer details have been agreed or clarified. But, for the explanatory memorandum, I can't help you with that.