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Most domestic sheds and garages require a building permit. Exemptions apply to a shed/garage when the floor area does not exceed 10m2.
If a building permit is required and the building work, including supply and installation, costs more than $10,000, unless you are an owner-builder, you must use a registered building practitioner to carry out the work.
A major domestic building contract must be entered into with the registered building practitioner for works over $10,000.
If the cost of the work (including labour and materials) exceeds $16,000 the builder or owner-builder is required to provide domestic building insurance and a certificate of consent from the VBA to undertake the work as an owner-builder. .
The installation of roof sheeting, flashings, guttering, downpipes or other regulated plumbing work on a shed, regardless of scale, must be carried out by a licensed or registered plumbing practitioner. If the value of the plumbing work exceeds $750 a compliance certificate is required from a licensed plumbing practitioner.
If an owner-built shed or garage is sold within six and half years of the domestic building work being completed (i.e. from the date of your occupancy permit or certificate of final inspection), a defects report by a prescribed building practitioner and additional insurance may be required.

How close can I build my shed to a boundary?

In residential areas, the setback from a side or rear boundary for any new shed/garage will generally be determined by the height. See Building Regulations 2018 and scroll down to "Regulation 79 – side and rear setbacks". 

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