Home-based businesses

This advice is intended to assist you to carry out a home-based business at your residence.

Home-based businesses are small businesses undertaken in a dwelling or on the land surrounding a dwelling, by the resident. If you know you need a permit go to home-based businesses planning application checklist (18P).

Certain types of businesses or activities are inappropriate as home-based businesses, as they are disruptive to or detract from the neighbourhood. Examples include a motor mechanic, timber yard, storage depot and manufacturing.

Talk to us before you start operating

Talk to us about your permit requirements before starting a home-based business. There are penalties if your business is not operating in line with the requirements of the planning scheme. For free advice talk to us.

Requirements of all home-based businesses

All home based businesses must meet certain requirements to be allowed to operate.

Requirements set the:

  • number of staff who don’t also live there (maximum two)
  • net floor area used by the business 
  • excessive use of utilities (water, electricity etc)
  • impact on the neighbourhood, including traffic, noise, smell, hazards etc
  • number and type of commercial vehicles that can be parked there
  • materials you can use and store
  • goods you can display, sell and customer collections
  • signage - number and size of signs.

Permits - when your business needs one 

You will need a planning permit to vary the requirements and operate a business with:

  • three staff members who are not residents
  • a floor area of up to 200 square metres or one-third of the net floor area of the dwelling (whichever is the lesser)
  • an additional commercial vehicle
  • larger or multiple advertising signs.

Signage – advertising your business

You can advertise your business in a residential or rural area by putting up one sign that is under 0.2 square metres and is not illuminated. To put up extra or larger signs you will need a planning permit. Use our put up a sign planning application checklist (17P).

More information

We encourage the development of appropriate home businesses, according to the requirements of Clause 52.11 of the Nillumbik Planning Scheme.