Shellharbour Tiny Homes Pilot 2026

The short answer

Shellharbour City Council announced on 23 June 2026 that it had adopted the planning proposal for a two-year mobile tiny homes pilot. The same announcement listed finalisation with the NSW Department of Planning, Housing and Infrastructure and formal commencement of the Local Approvals Policy as next steps.

The NSW Planning Portal still showed the proposal at “Gateway Implementation” with “Publish Decision: No” when checked on 22 July 2026. Do not assume the proposed development-application exemption is available yet. Ask Shellharbour Council whether the planning change and Local Approvals Policy are formally in force before ordering a home, signing a lease or relying on the pilot.

What Council announced

Shellharbour City Council's 23 June release describes a two-year trial for certain mobile tiny homes used as rental accommodation. Council says the trial is intended to remove the need for a development application for qualifying homes while retaining a separate local approval process and detailed site criteria.

The proposal is about a particular kind of movable dwelling in the Shellharbour local government area. It is not a general approval for every tiny home, modular cabin, manufactured home, relocatable home or granny flat in NSW.

The NSW Planning Portal record identifies the proposal as PP-2025-2427 and says it is intended to enable a two-year pilot in certain zones. It records a Gateway decision dated 12 March 2026 and public exhibition from 9 April to 8 May 2026.

What still appears to be pending

Council's release sets out two steps before the pilot begins:

finalising the planning proposal in consultation with the NSW Department of Planning, Housing and Infrastructure
formally adopting and putting the Local Approvals Policy into effect

That wording matters. A council vote to proceed is not the same as a buyer being able to use the new pathway today.

The Planning Portal status reinforces the need to check. On 22 July, it recorded the stage as “Gateway Implementation” and did not show a published decision. The public-exhibition policy document also still contained draft placeholders for its adoption and review dates.

Before relying on the pilot, obtain written confirmation from Council of:

the date the planning change took effect
the date the Local Approvals Policy commenced
the current application form, fee and supporting-document list
the properties and zones eligible for the trial
any changes made after public exhibition

The draft scope is narrower than “tiny homes”

The public-exhibition draft Local Approvals Policy defined a mobile tiny home by reference to a campervan or caravan capable of vehicle or trailer registration. It expressly excluded manufactured homes, relocatable homes and tents.

The draft also distinguished “installation” from erecting a new building. Installation included bringing the mobile tiny home to the land, anchoring it and connecting services.

Those definitions mean buyers should not use the pilot announcement as proof that a fixed modular cabin, skid-based pod or ordinary secondary dwelling will qualify. Ask Council about the exact design, chassis, registration status and intended installation before paying a deposit.

For the broader distinction, read the tiny house on wheels legality guide and the Class 1a tiny home guide.

Draft property and site checks

The following points come from the public-exhibition draft, not a confirmed final policy. They are useful screening questions, but the adopted version must be checked once published.

The draft proposed that the land would need to:

be within the Shellharbour City local government area
be Torrens title with one existing dwelling house
qualify under the policy's land and planning criteria
connect the mobile tiny home to existing reticulated sewer and stormwater systems
retain required parking and private open space for the main dwelling
provide suitable all-weather access for transport and installation
avoid disqualifying constraints such as flood-prone, bushfire-prone, heritage, foreshore, environmentally sensitive or contaminated land

It also proposed siting, setback, gradient, tree, easement, smoke-alarm, anchoring and structural-engineering requirements. The home would remain on wheels during the pilot and would need sleeping, kitchen/living, bathroom and laundry facilities under the exhibited draft.

Do not test a property against this summary alone. Council may change the criteria, and title restrictions, service-provider requirements or site facts can still prevent a project.

Rental use, not a shortcut for every project

Council described the pilot as a housing trial for mobile tiny homes used as rental accommodation. The exhibited draft said it would not apply to farm-stay or agritourism accommodation and would not permit short-term rental accommodation under the pilot.

It also proposed a two-year life for the trial. The draft said continued rental use after the pilot could require a development application and would not be guaranteed approval. That creates an important commercial question: what happens to the home, tenant and site investment when the trial finishes?

Before committing, ask Council and obtain independent advice about:

the approval period attached to the specific property
whether the approval transfers if the land or home is sold
the process and cost at the end of the pilot
whether continued residential use would require a development application
the tenancy, insurance and safety obligations during the trial
whether decks, stairs, utility work or other site structures need separate approval

What buyers should verify before ordering

A builder can supply technical information, but Council determines whether the local pathway applies. Give both parties the same project description and ask for consistent written answers.

Confirm:

the home's registration category, dimensions and weight
whether Council accepts that product under the final policy definition
the site plan, manufacturer specifications and engineering documents required
sewer, water, electricity, drainage and stormwater connection scope
access for delivery and installation
who prepares and lodges the local approval application
what happens to the contract and deposit if the property is ineligible
who pays for redesign, service upgrades or relocation if approval conditions change the project

Use the delivery and installation checklist and building contract checklist before signing. Make approval a clearly allocated contract responsibility rather than relying on a verbal “it should be fine”.

Where to research builders

The pilot does not certify or recommend builders. Start with the NSW tiny home builder directory and NSW builder shortlist guide, then ask shortlisted providers whether they have reviewed the final Shellharbour policy and can supply the documents Council requires.

Confirm service area, contract entity, current pricing, registration, insurance, delivery, engineering and approval support directly. A directory listing is not proof that a home or builder qualifies for the pilot.

What remains uncertain

As at 22 July 2026:

Council had announced adoption of the planning proposal
Council's release said state finalisation and formal policy commencement were still next steps
the NSW Planning Portal did not show a published decision
the public policy document available through the proposal record was still the exhibition draft

The useful next update will be the formal commencement date and final policy text. Until those are published, treat the criteria above as proposed rather than operative.

FAQ

Can I put a tiny home in a Shellharbour backyard without a DA now?

Do not assume so. Council announced adoption of the pilot proposal, but its June release said final planning and policy steps remained. Confirm the current position and the separate local approval requirements directly with Shellharbour Council.

Does the pilot cover a modular cabin?

The exhibited draft focused on mobile tiny homes defined as campervans or caravans capable of registration and excluded manufactured and relocatable homes. Ask Council to classify the exact product under the final policy.

Is the pilot for short-stay accommodation?

The exhibited draft said homes under the policy could not be used for short-term rental accommodation. Council described the trial as rental accommodation intended to support housing supply. Check the final policy and tenancy requirements before relying on that use.

How long will the pilot last?

Council describes a two-year trial. The start date depends on the remaining planning and policy commencement steps. Ask what approval and exit arrangements apply to an individual property when the trial ends.

Sources and disclaimer

Sources checked 22 July 2026:

This article is general information, not legal or planning advice. Proposal status, policy wording and application requirements can change. Confirm the current rules for the specific property and home with Shellharbour City Council before relying on the pilot.

Last updated 22 July 2026.

Shellharbour Tiny Homes Pilot 2026: What Buyers Need to Know