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Would these landscaping requirements be for the area that the granny flat is enclosed in? Is there a certain amount of landscaped area you'd need to leave for the main residence?

Better to be cold in the bedrooms than cold in the living rooms :)

Have you thought about going for a higher ceiling to create an illusion of more space?

Thanks for the interesting link to that granny flat builder in Parra. I'm looking to do exactly what you're doing. Do you know if areas like the deck and garage/carport actually count towards the 60sqm limit? Also, are you looking to put in two smaller bedrooms or one larger bedroom?