The NSW Government recently changed the rules, so that secondary dwellings will now be allowed in all residential zones and can be approved within 10 days by private certifiers.
In a recent newspaper article on this, seeking comments, one comment I liked was
"It’s about time! We have too many rules anyway. There is plenty of space around the Northern Beaches, and granny flats will help young adults, the elderly, and foreign students to find cheap accomodation."
Ray White Beecroft are researching the issue for a number of their landlords, and warn of the tax issues involved if you later sell your home after converting part of it into a rental flat.
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