The garage conversion to a studio obviously need to met the usual SEPP requirement to become habitable room such as basix, slab/frame, wet proofing, weatherproofing, pest certificates etc.??
Yes it does. Here's the new 'DETACHED STUDIO' rules:
http://www.legislation.nsw.gov.au/maintop/view/inforce/epi+572+2008+cd+0+N
3.33 Development standards for detached studios
(1) This clause applies:
(a) to a detached studio, and
(b) in addition to the development standards specified in clauses 3.8, 3.9 and 3.24.
(2) A detached studio must not be located in a heritage conservation area or draft heritage conservation area.
(3) A detached studio must be located behind the building line.
(4) Not more than one detached studio may be located on a lot.
(5) A detached studio must not have a building height of more than:
(a) 3.6m, or
(b) if the studio is located within 900mm of a lane?6m.
(6) The floor area of a detached studio must not be more than the following:
(a) if the lot has an area of not more than 350m2?20m2,
(b) if the lot has an area of more than 350m2?35m2.
(7) A window in a new detached studio, or a new window in any alteration or addition to an existing detached studio, must have a privacy screen if:
(a) the window:
(i) is in a habitable room that has a floor level of more than 1m above ground level (existing), and
(ii) has a sill height of less than 1.5m above that floor level, and
(iii) faces a side or rear boundary and is less than 3m from that boundary, or
(b) the window:
(i) is in a habitable room that has a floor level of more than 3m above ground level (existing), and
(ii) has a sill height of less than 1.5m above a floor level of more than 3m above ground level (existing), and
(iii) faces a side or rear boundary and is at least 3m, but not more than 6m, from that boundary.
(8) The side and rear setbacks for a detached studio are as follows:
(a) if the lot has a width, measured at the building line, of at least 6m but not more than 18m?0.9m,
(b) if the lot has a width, measured at the building line, of more than 18m?1.5m.
(9) Despite subclause (8), a detached studio that is located within 900mm of a rear lane:
(a) may be built to both side boundaries if the lot has a width, measured at the building line, of at least 6m, but not more than 8m, or
(b) may be built to only one side boundary if the lot has a width, measured at the building line, of more than 8m, but not more than 12.5m.
(10) Subclause (9) does not apply if:
(a) the wall of a building on the adjoining lot is not of masonry construction and is within 900mm of the boundary, or
(b) the wall of a building adjoining the lot has a window facing the boundary and is within 900mm of the boundary.
(11) A wall within 900mm of a boundary of a lot on which a detached studio has been erected under subclause (9) must not be higher than:
(a) 3.3m above ground level (existing), or
(b) if the wall is built to a boundary wall on an adjoining lot?the height of that boundary wall, but not higher than 6m.