Invest
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months.

Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months.

Initially planned to kick in on 30 July, NSW’s short-term letting rules, otherwise known as STRA, have been delayed following a strong reaction from all sides of the industry, including local councils, which argued the new rules would erode their planning powers.
The rules, which Planning and Public Spaces Minister Rob Stokes initially said have been well thought through and would provide “some certain rules for everybody”, foresee the extension of the 180-nights-a-year cap from the greater Sydney area to regional and holiday hotspots.
This would essentially mean that in areas such as Newcastle, Dubbo and Ballina, hosts would only be allowed to rent out their homes for up to 180 nights a year. The Byron Shire would join this group from 31 January 2022.
But less than 24 hours after praising the new rules as “simple”, Mr Stokes announced that “in the interest of conciliation, and to give the policy the best chance to succeed, we’re happy to extend the date for implementation to November 1”.
The NSW government’s 180-day cap was first born in 2018, when the government announced it would cap the use of empty properties for Airbnb-style letting to control rental affordability.
At the time, the rule only applied to greater Sydney, with regional councils allowed to impose their own caps.
Following Mr Stoke’s update on Tuesday, homestay booking service Stayz issued a call to government to use the additional time to work with industry to get their “important changes to the rules” back on track by undertaking “proper trialling and testing”.
Referring to the government’s 180-day cap as “unproven”, Stayz corporate affairs director Eacham Curry also pleaded with the government to reconsider the expansion of regions, while noting the complexity it introduces by applying only to unhosted properties.
“Traditional accommodation offerings are often limited in regional areas, and the tourism industry is only starting to bounce back after a tough 18 months dominated by COVID-19 and bushfires.
“The expansion of night caps to further regions is a blow to the tourist economy, and the NSW government should rethink their approach in the face of an uncertain outlook for tourism,” Mr Curry said.
He opined that night caps for holiday rentals not only put the economic uplift associated with the tourism sector at risk, but also fail to address the four most consistently raised questions about the industry, including housing affordability, housing availability, the impact on government resources and service provision, and finally, impact on neighbourhood amenity.
“Stayz reiterates calls for the NSW government to work with industry and the community to ensure the success of the new regulations for short-term rental accommodation,” Mr Curry concluded.
About the author

About the author


Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more