TINY houses may become impractical in Mount Alexander Shire advocates fear, as the council proposes changes to the local laws about camping on private property.
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But council staff says its approach to mobile tiny homes is limited by the requirements of federal and state planning and transport laws.
The proposed new local laws would allow people to camp on private property for 21 days only before obtaining a permit, compared with the six weeks allowed under the previous set of laws.
The draft laws are on exhibition for public comment.
Fred's Tiny House business owner Fred Schultz said a change as proposed would make it difficult to live in a tiny house, by reducing the number of days a year it was allowed.
He said those currently living in time houses for longer than the permitted for six weeks were currently relying on their neighbours not to complain, passing under the radar of councils.
Mr Schultz said tiny houses could help people reduce their carbon footprint, meet values around minimalism, offer housing affordability, or help people save for a larger house.
But Mount Alexander Shire Council development services manager Shannon Meadows said local laws had limited scope to influence camping and caravanning, where mobile tiny homes sit in the legal system.
He said the planning and building system defined a dwelling, and the roads safety act defined a caravan.
Mr Meadows said something like a tiny home if it was permanent was a dwelling, requiring the owners to go through a permit process subject to planning and building legislation.
If it was temporary, it was considered a caravan, he said.
"We can't conflict with those definitions," Mr Meadows said.
"We're constrained by the state legislation and how it views tiny homes. And our local law can't conflict with that.
"We have to work out how to regulate and enable tiny homes in our local laws, noting that if it's a short term it's considered a caravan and if it's a permanent it's considered a dwelling."
The proposed changes are part of a routine 10-yearly update to the council's local laws.
As drafted they would limit the amount of time a person can camp on a property without a permit to 21 days in a 12 month period. A permit could allow a person to occupy a temporary tiny home for up to six months.
People can currently camp on private land for six weeks in a 12 month period.
The Australian Tiny House Association defines tiny houses as movable dwellings of up to 50 square metres.
Mr Meadows said he was aware of conversations taking place at a state level around reforming the planning and building systems in light of tiny homes.
He said council would not finalise or adopt the draft local laws until submissions were reviewed, and all appropriate changes made.
Mount Alexander's draft local laws are open for comment until 5pm, Friday July 31.
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