Australia

Australian Capital Territory

The ACT Government plans to introduce a five per cent levy on short-term rental revenue from July 1, 2025.

Its rationale for introducing the tax is unclear and there has been no guidance on how much revenue will be raised through the levy or where the money will go.

The Government is on record as saying there is little evidence that STRA is impacting housing affordability in the ACT and that the cost of any regulation (particularly restrictions) would likely outweigh any benefits.

It also noted that Airbnb guests spent $187 million in the ACT during 2022, supporting about 1200 jobs, including cleaners, property managers and gardeners.

New South Wales

Australia’s most populated state administers a statewide STRA register and linked Code of Conduct, both of which are compulsory.

There are 180-day STRA stay limits for non-hosted properties throughout Sydney, the Ballina area, parts of the Clarence Valley and Muswellbrook.

Meanwhile, Byron Shire Council introduced a 60-day stay limit for non-hosted properties in most parts of its local government area in September 2024, a move ASTRA strongly opposed and continues to lobby against.

Against this backdrop, the NSW Government has been reviewing its STRA regulatory framework throughout 2024.

“We are now considering all submissions and investigating policy changes to help unlock housing supply and improve housing affordability in NSW,” the government said.

An announcement on the future regulation of STRA in NSW is expected in the first quarter of 2025.

• See NSW Govt Discussion Paper

• Read ASTRA’s submission

Northern Territory

The Northern Territory Government has not announced any reforms or legislation for the short-stay accommodation sector. It does have existing laws that allow owners' corporations to rule that leases must be signed for a minimum time frame to limit short stays.

Queensland

Queensland voters elected a new Liberal National Party government in late 2024 led by Premier David Crisafulli.

At this stage it is unclear what approach the Crisafulli government will take with STRA, which in Queensland is administered at the local government level.

Prior to the election, the former Labor Government had been considering the implementation of a statewide STRA registration system and levy, based on the findings of a University of Queensland (UQ) report it commissioned.

The UQ report found that STRA did not significantly impact rental affordability in Queensland as some politicians had claimed. Rather, too few dwellings was the main issue.

It recommended the implementation of a statewide registration system and a code of conduct to support local governments.

In the Queensland capital, Brisbane City Council said in mid-2024 it plans to introduce a STRA permit system.

South Australia

Short term rentals in South Australia are regulated by local governments with attitudes varying from council to council through the state.

For example, The Barossa Council requires development approval to use an existing dwelling for any form of tourist accommodation, regardless of the number of guests being accommodated.

In the 2024/25 financial year, Adelaide City Council changed its classification of short term rentals from residential to non-residential.

The new classification applies to properties available for short term rental for 90 days or more in a 12-month period and has resulted in annual rate rises of more than 20% in some cases.

Tasmania

A permit has been required to operate an unhosted short term rental in Tasmania for many years, a system ASTRA believes has worked well.

The ’permit system’ in Tasmania requires short and medium stay hosts, excluding hotels, motels and caravan parks, to register for a permit with their local council.

Exemptions to permits are available, including to those hosts where the accommodation is their main place of residence or if it has no more than four bookable rooms for visitors.

Local councils may also regulate short stay properties.

For example, Hobart City Council has passed a motion to stop any new permits for whole-house short-term development in residential areas.

Meanwhile, the Tasmanian Liberal government announced in early 2024 it would introduce a 5% levy on short term accommodation if re-elected in the late March poll.

The Liberals narrowly retained control, but the issue has not been raised since and it is unclear if the Government will proceed with the levy. 

Victoria

Victoria’s contentious Short Stay Levy Bill 2024 comes into effect on January 1, 2025. Key elements of the bill include:

• New 7.5% tax on revenue generated by most short term rentals. It will not apply to a homeowner leasing out all or part of their principal place of residence for a short stay.

• Enabling local councils to regulate short term rentals. There are 79 councils in Victoria, which means there could be 79 different laws.

• Under the new law, owner’s corporations will be able to ban short term stays in their developments if 75% of owners agree.

ASTRA and other industry groups fought hard against the Bill, seeking amendments, but an alliance between the Labor Government and Greens MPs ensured it was passed in the Upper House of the Victorian Parliament without change.

Among the changes advocated by ASTRA were:

• A statewide register - local councils should not be involved.

• A fairer levy of 2-3% applied across all accommodation types.

• No nightly caps.

• Code of conduct for hosts and guests.

ASTRA will closely monitor the impact of the new tax on Victorian STRA businesses.

Western Australia

Western Australia’s statewide registration scheme comes into force on January 1, 2025.

All hosted and non-hosted STRA properties must be registered otherwise they will not be able to advertise and take bookings either directly or through online booking platforms.

Other key features of the new WA government STRA regulations include:

• New definitions introduced into all local government planning schemes which deal with STRA.

• Statewide exemptions from planning approval for hosted STRA properties.

• New planning exemptions for unhosted STRA within the Perth metropolitan area where the owner does not intend to rent their property out for more than 90 nights within a 12-month period.

• Flexibility for regional local governments (including Peel) to implement planning rules that suit the needs of their communities.

• Revised tourism land uses that can be adopted into local government planning schemes.

The changes do not include limitations or 'caps' on the number of nights that a STRA property can be leased on the short-term market.

The WA Government is also offering short term rental operators a $10,000 incentive to switch their properties to the long term market for a minimum of 12 months at or below the maximum rent chargeable for their property’s location.

Applications for the STRA Incentive Scheme are open until June 30, 2025, or until funding for the initiative runs out.