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Many thanks for the response. I don't intend to build a Granny flat, but intend to use the granny flat provision. The property was purchased 30 years ago so I believe CGT should be exempt if the property is transferred to me. As for accommodation for my mum while the house is being built...

Hi all, My mum would like to transfer her fully paid off home over to me under the granny flat provisions which she qualifies under the reasonableness test amount. My concern is after receiving the title, can I demolish, subdivide and build a duplex on it (one for her to live in for life)...