You can put the internal walls up yourself but you need to get development approval to do it because you are creating a habitable room within the house.
This used to be a very common thing to do. There are a lot of houses around here that have sliding glass doors on the ground floor opening out onto the driveway that are suspiciously similar in size to a single garage door. One that I know of had a carport added to the front of the house so that the garage wasn't missed.
I don't know what is more valuable: a LUG or a 4th bedroom. When I was building an extension that would close off access to the freestanding garage at the rear of my house in Sydney, I rang the real estate agent I bought it from and asked her opinion. She said don't do it, people value having vehicle access to their backyards. I did it anyway and we sold the place for double what we paid for it 5 years earlier. Maybe if I hadn't done it we would have gotten more. I don't think so.
The other thing to keep in mind is that if the walls are not lined, lining them might introduce problems with termites. In another case I know off where a room was built under a house, the framing provided the termites with direct access to the sub floor of the house above because it bypassed all the ant capping. Just be aware of that if you go ahead - you might give termites access to your roof.