addition to house or Granny flat?

I have a garage (not attached to house) that I am wanting to convert into a studio/Granny flat - go above. I don't have a big budget so trying to work out how to do this. I would like to live in the Granny Flat and rent my house. I have read the Affordable housing SEPP but still no sure about some points.

I would like to know which way to approach the DA - whats going to cost me the least with council short term and long term - contributions, rates etc

Can someone give me an idea if I should -

1. make it an addition to house - ensuite bathroom, living room with wetbar (which may become a small kitchenette)

2. GF staying under the 60sq - is is correct that decks and patios are not included in the 60sq.

3. Is a GF classified as dual occupancy and if so what are the extra charges that I would have to be pay.

4. What about S94 contributions does it apply to Granny flats

If you have any other suggestions please let me know
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