Home based businesses

Are you working from home?

In most instances, you do not need a planning permit to use your house to work remotely.

Instances where you may need a planning permit include:

• If you extend your house to construct an office
• Running a business from your dwelling (see below)
• Displaying signage

Home based businesses

Usually, you do not require a planning permit in a residential zone to operate a business from your place of residence (dwelling), provided you meet the following requirements (found at clause 52.11 of the Merri-bek Planning Scheme):

• The person conducting the home based business must use the dwelling as their principal place of residence.
• No more than two persons who does not live in the dwelling may work in the home based business at any one time.
• The net floor area used in conducting the business including the storage of any materials or goods must not exceed 100 square metres or one-third of the net floor area of the dwelling, whichever is the lesser. The net floor area includes out-buildings and works normal to a dwelling.
• The business must not impose a load on any utility greater than normally required for domestic use.
• No motor vehicle may be adjusted, modified, serviced or repaired for gain.
• Only one commercial vehicle (a commercial goods vehicle, commercial passenger vehicle or tow truck within the meaning of the Transport Act 1983), not exceeding 2 tonnes capacity and with or without a trailer registered to a resident of the dwelling may be present at any time. The vehicle must not be fuelled or repaired on the site.
• No goods other than goods manufactured or serviced in the home based business may be offered for sale. This requirement does not apply to goods offered for sale online.
• Materials used or goods manufactured, serviced or repaired in the home based business must be stored within a building.
• No goods manufactured, serviced or repaired may be displayed so that they are visible from outside the site.
• Any goods offered for sale online must not be collected from the dwelling.
• The business must not adversely affect the amenity of the neighbourhood in any way including:
  • The appearance of any building, works or materials used
  • The parking of motor vehicles
  • The transporting of materials or goods to or from the dwelling
  • The hours of operation
  • Electrical interference
  • The storage of chemicals, gasses or other hazardous materials
  • Emissions from the site

Planning permits for home based businesses

You can also apply for a planning permit for a home based business which:

• Allows no more than three people who do not live in the dwelling to work in the occupation at any one time; or
• Has a floor area not exceeding 200 square metres or one-third of the net floor area of the dwelling, whichever is the lesser.
• Allows no more than one additional commercial vehicle (a commercial goods vehicle, commercial passenger vehicle or tow truck within the meaning of the Transport Act 1983), not exceeding two tonnes capacity and with or without a trailer registered to a resident of the dwelling, to be present at any time.

More information about home based businesses can be found at Clause 52.11 of the Merri-bek Planning Scheme.

Other requirements

There may also be other Council requirements that you will need to meet if you wish to run a business from home. It is suggested that you speak to Council’s Environmental Health and Building Services Branches, by calling 9240 1111.

Home based food businesses

A home based food business cannot be offered via online platforms such as Uber Eats, as these businesses involve an online sale and are being collected from the dwelling. This does not meet the following requirement of Clause 52.11:

• Any goods offered for sale online must not be collected from the dwelling.

Any person wishing to conduct a food based business from home would be required to undertake the delivery service themselves. However, Clause 52.11 also states that the business must not adversely affect the neighbourhood in anyway, including through the transporting of goods to and from the dwelling. As such, home based businesses that require frequent deliveries (such as a hot dinner service) would not be permitted.

Other food based businesses that require infrequent deliveries (such as a baker who delivers goods only once per day) may be permissible. It is recommended that if you are seeking to open a home based food business that you contact Council’s Planner on Duty by calling 9240 1111.

Signage

Home based businesses can display a sign (that is not illuminated) with a display area of no more than 0.2 square metres on the dwelling or on the land around the dwelling. For example, that's a sign no larger than:

• 50cm x 40cm
• 20cm x 100cm
• or an equivalent area.

Any sign that exceeds this size will require a planning permit.

More information regarding planning permits

More information regarding planning permits can be found by calling the planning department on 9240 111 or through the Planning and Building section of our website.

To receive written advice regarding a home based business you have to apply for a planning property enquiry. More information regarding Planning Property Enquiry can be found on our Lodge a Planning Property Enquiry web page.

Business Merri-bek

If you are looking at opening a new business that is not run from your home, we encourage you to take a look through the resources available on the Business Merri-bek website.

Further enquiries

If you have any enquires regarding operating a home based business or an existing home based business in your area, it is recommended that you speak to the Planner on Duty by calling 9240 1111.