Canberra Allows Second 120sqm Dwellings on Large RZ1 Blocks

The Territory Plan, which sets out 23 land use zones across the ACT, was updated in 2023 to allow dual occupancies on RZ1 Suburban Zone blocks larger than 800 square metres. A second dwelling of up to 120 square metres can be unit-titled for separate ownership under the revised rules.

Canberra residents in RZ1 areas now have clearer parameters for adding a second dwelling on qualifying blocks. This change directly affects households considering how to use larger suburban lots while remaining within the two-storey height limit and required setbacks.

RZ1 development requirements

RZ1 zones restrict buildings to two storeys maximum. Specific setbacks apply, including a 6 metre front setback for dwellings, 3 to 6 metre rear setbacks, variable side setbacks, and two undercover parking spaces per dwelling. These standards determine what is physically possible on individual blocks.

Projects in Designated Areas such as Parliamentary Zones, Inner Hills and Lake Burley Griffin require separate approval from the National Capital Authority under the National Capital Plan. Some developments may be exempt from full development approval if they meet the criteria in the Planning (Exempt Development) Regulation 2023, while others must show compliance with Territory Plan assessment outcomes.

Household budget considerations

For residents, the rules outline a pathway to add a second titled dwelling without needing to rezone land. This option can influence decisions about accommodating family members, generating rental income or managing space on a single block, all within the existing zoning framework.

Further proposals will continue to be assessed against the Territory Plan and any applicable exemptions. Residents can review the official planning documents for details on how the 2023 updates apply to specific properties.