According to the Affordable Rental Housing State Environmental Planning Policy (NSW) 2009, a Granny Flat or secondary dwelling is referred to as a self-contained dwelling that is erected on a property in conjunction with another dwelling (the principal dwelling), and can be either attached to or detached from the principal dwelling.
A granny flat is considered ‘attached’ once it is within 900mm from the principal dwelling.
For both savvy investors and family-oriented homeowners, Attached Granny Flats bring a wide range of benefits:
The Nation Construction Code (NCC) requires all Granny Flats to include a kitchen, a bath or shower, clothes washing facilities and a toilet. Another important requirement to help stop the spread of fire from one dwelling to another is a wall with an FRL (Fire Resistance Level) of not less than 60/60/60, or a masonry wall not less than 90mm thick, between the Granny Flat and principal dwelling
It is also preferred that there is no internal access between the Granny Flat and principal dwelling. If a door is provided, it would be need to be a self-closing door with solid core and a thickness of no less than 35mm.
Your attached Granny Flat could be achievable within a Complying Development Certificate (CDC), however, observing that the choice of an attached Granny Flat is often due to space, it will often need to be approved via a development application (DA). With most councils will be working through a backlog of building requests, the sooner you start the process of working out what is possible - the sooner you will get approved and get ready to create this special new space for your family.
Reference:
https://treasury.gov.au/sites/default/files/2020-06/Fact_sheet_HomeBuilder.pdf