“Granny” is a misnomer – granny flat agreements almost always involve an arrangement between parent/s and child or children.  But they can be arrangements between anyone – there is no requirement that they be limited to agreements between family members.  Granny flat agreements are arrangements where there is usually an exchange of assets for a right to accommodation and (sometimes) care, for life.  There are no age limits involved. Granny flat agreements do not have to provide accommodation within the home of a child – the accommodation can be elsewhere.

You will find here information about granny flat agreements including how they are commonly used, and financial and Centrelink information. There is also a link to our online forms which are used to provide relevant information to us if you are proceeding with an agreement.

Granny flat agreements are becoming increasingly used for two principal purposes:

• To provide accommodation and care at home, as an alternative to residential aged care
• As an estate planning tool – for instance, to assist children during the lives of parents (and sometimes to deliberately disinherit a wayward child)

The Commonwealth government encourages the use of granny flat arrangements by ameliorating the impact of gifting rules for pensioners.

The Commonwealth government is also going to enact legislation in mid-2021 that will make written granny flat agreements compulsory if capital gains tax issues are to be avoided.

Hitherto agreements did not have to be in writing, for tax or Centrelink purposes.

We provide a prompt and cost effective service to draw up granny flat agreements.

Disputes relating to granny flat arrangements

With increasing popularity of granny flat agreements it is likely there will be increased numbers of disputes.

Often, but not always, disputes result from there being no written agreement.  A good written agreement will set out the parties’ responsibilities, obligations and rights in common situations, for instance the death of a party.  The disputes we see are varied – no two are the same.

See our page on this website on disputes, and how to avoid them, for more detailed information.