Australian regulatory updates

1 November start date looms for NSW Government registration framework commencement

As the 1 November 2021 deadline for the introduction of the new NSW statewide regulatory framework for short-term rental accommodation fast approaches, we are continuing to seek engagement with the Government to ensure the sector is ready. 

Unfortunately, discussions with the NSW Government over its registration system (which Stayz strongly supports in principle) continue to be slower than hoped, and we continue to harbour concerns that the technical aspects which require implementation may not be tested sufficiently to ensure a smooth commencement.

Stayz is working with the other major booking platforms to impress on the NSW Government the fact that there needs to be enough time for industry to implement these important changes and we will continue keep partners further appraised of developments.

Pre-registration is available to property owners and, notwithstanding our ongoing discussions with the Government on the practical commencement, we encourage your early registration. Details on how to pre-register can be found here.

Bega and Dubbo Councils rescind plans for night caps

Councillors from Bega Valley Shire and Dubbo Regional Councils both voted to rescind plans for a 180-day cap for short-term rental accommodation in their respective regions. The NSW Government had indicated that a 180-day cap would apply to those regions, but councillors voted to overturn the plans to impose a cap in those regions.

Stayz welcomes the decision from both councils to allow short-term rental accommodation properties to be available all year under the new NSW Government policy for our sector.

Noosa Council seeks more information on housing sector

Noosa Regional Council recently voted to commission a further review into housing affordability and accessibility in the region.

We’ve questioned the utility of commissioning another housing review when the Council simply ignored the findings of the previous assessment (see below).

A 2017 Noosa Council Report titled, ‘Housing Needs Assessment’, by Briggs and Mortar stated that:

‘It is accepted that there are many social and economic reasons that Short-Term Rental Accommodation is required in Noosa Shire, both for visitor and resident accommodation, and that there are many beneficial impacts of utilising otherwise unused accommodation. Without the availability of this accommodation, the identified shortage of small and affordable accommodation, especially in the rental market, would be significantly greater...

Council advises that, in the majority of cases, short-term rentals have not caused problems, including student home stays, although some issues of overcrowding have occurred. 

It would appear that the most effective regulation is at the State level.’

The repeat of the Briggs & Mortar review comes as the Council continues to squeeze mum-and-dad holiday homeowners with higher property rates, arbitrary amenity restrictions and a maze of new planning rules.

Frustrations with NSW Government registration framework continue

As the deadline for the introduction of the new NSW statewide regulatory framework for short-term rental accommodation approaches (1 November), we are continuing to seek engagement with the Government to ensure we are ready.

Unfortunately, discussions with the NSW Government over its registration system (which Stayz strongly supports in principle) have been slower than hoped, and we harbour concerns that the technical aspects which require implementation may not be tested sufficiently to ensure a smooth commencement.

Stayz is working with the other major booking platforms to impress on the NSW Government the fact that there needs to be enough time for the industry to implement these important changes, and will keep partners further appraised of developments.

Queensland Government indicates appetite for statewide regulatory framework

In late May 2021, Noosa Shire Council released plans to double down on its arbitrary local law for short-term rental accommodation with a rates increase for holiday homes.

If implemented, the proposal from Noosa Shire Council will drive up the cost of holiday accommodation and fail to address the concerns cited by the Council.

In what we hope is a positive development, there now seems to be a renewed appetite from the State Government to revisit the earlier work of an Industry Reference Group. We expect that in the next few weeks, the Government will outline some next steps to get things back on track.

You can read more about what Noosa Shire Council has proposed here and here.

Melville City Council passes occupancy limits for short-term rentals

The City of Melville, in Perth’s southern suburbs, recently passed a new local law that will restrict the number of guests allowed in a short-term rental.

While it is understandable that the City of Melville is seeking to improve amenity in its community, the WA Government is working on a whole-of-government regulatory framework for our sector.

Arbitrary caps on the number of people allowed in a holiday rental will fail to meaningfully address the issue of anti-social behaviour in short-term rental accommodation. Our experience shows that limits on the number of people allowed in a holiday rental – whether it is six, eight, ten or more people – will not resolve questions about amenity as effectively as a robust, mandatory code of conduct that is backed by penalties for poor behaviour.

You can read more about the new rules here.

City of Busselton considering changes to short-term rentals

The City of Busselton Council is considering commencing a review that proposes a number of further arbitrary restrictions for short-term rental accommodation at an upcoming council meeting. The proposed arbitrary restrictions include:

• Bans on short-term rental accommodation in certain locations.
• Introducing tighter maximum occupancy limits for properties.
• Arbitrary contact and complaint handling requirements that require the owner or manager of a holiday rental to respond to any contact within 12 hours, and be located within 30 minutes of the property.
• Imposition of a local code of conduct that is based on a similar, flawed proposal from Noosa Shire Council in Queensland.
• Tighter rules for pets in holiday homes.

Stayz is currently working with the WA Government on a statewide regulatory framework that will improve our sector. To date, the WA Government has convened an interdepartmental taskforce to provide advice on the development of such a framework. This regulatory framework is proposed to include the introduction of a statewide register of all short-term rental accommodation and a code of conduct.

We will seek to keep impacted partners informed about these changes as developments occur.

Tasmanian Government re-elected

Following the Tasmanian election last month, the incumbent Liberal Government was returned.

Stayz has worked very productively with the Tasmanian Government over the past few years to build a nation-leading regulatory framework for our sector in that state.

We look forward to continuing to work with the Tasmanian Government as they continue to refine the rules for our growing sector.

NSW Government delays implementation of short-term rental regulations

On 13 April 2021, the NSW Government announced they will delay implementation of its short-term rental accommodation regulatory framework until 1 November 2021.

A few days earlier, on 9 April 2021, the NSW Government announced that the implementation of its regulatory framework would occur on 30 July 2021, despite limited consultation with the industry and, by their own admission, that the final design was still incomplete.

Stayz led the calls for the NSW Government to delay the implementation of new rules as a result of a lack of testing and integration of its new registration system, and the expansion of regions covered by its unproven 180-day cap for short-term rental accommodation. The regions that are proposed to be covered by the 180-day cap are: Greater Sydney, Newcastle, Dubbo, Bega Valley Shire, certain parts of Clarence Valley and certain land in Muswellbrook.

Stayz has urged the NSW Government to use the additional time it has allowed itself to work with industry to undertake proper trialling and testing of the new register of all short-term rental listings.

Stayz has also called on the NSW Government to reconsider the expansion of regions covered by its unproven 180-day cap on the availability of short-term rental accommodation, while also noting the complexity it introduces by only applying the cap to unhosted properties.

Read our full response to the NSW Government’s proposed regulatory framework here and more information from the NSW Department of Planning, Industry and Environment here.

Noosa Shire Council votes to progress local law for holiday rentals

On 18 March 2021, Noosa Shire Council voted to progress its arbitrary local law for short-term rental accommodation in the world-famous tourist destination. The local law, which opened for community consultation on 9 April 2021, contains a laundry-list number of arbitrary provisions, including:

• The requirement that short-term rental owners pay an annual fee to council to rent out the family holiday home. 
• The imposition of a complicated planning approval pathway that infringes on individual property rights and will result in a decline in the number of holiday homes in Noosa and will drive up the cost of holiday accommodation and send tourists to other parts of Queensland.
• Several unclear and unenforceable standards around noise, light spill, rubbish collection and property maintenance.
• Arbitrary contact and complaint handling requirements that require the owner or manager of a holiday rental to be located within 20 minutes of the property and respond to complaints within 30 minutes. 
• Arbitrary parking, noise and record-keeping requirements.

Stayz does not support the imposition of local laws for our industry, and urges the Queensland Government to act with a statewide regulatory framework for our industry. Stayz also believes the proposed measures are arbitrary and will put the tourism sector’s recovery at risk. More information about the changes can found here.

Shire of Augusta-Margaret River seeks to restrict short-term rental accommodation

The Shire of Augusta-Margaret River recently announced it is acting to remove the ability for dwellings near the Margaret River Town Centre to be converted for use as short-term rental accommodation. The measure is expected to be temporary and will only apply to new applications.

The move comes as the WA Government is working on whole-of-government regulatory framework for our sector. To date, the WA Government has convened an interdepartmental taskforce to provide advice on development of such a framework, including the introduction of a register of all short-term rental accommodation.

Stayz has called on the Council to join our efforts to work with the WA Government to implement its register of all short-term rentals and use the data that is collected by this tool to point to solutions that will better address the key concerns of locals.

More information about the proposed changes can be found on Council’s website here.

South Australian Government rules out bed tax for short-term rentals

On 21 February 2021, the South Australian Government ruled out the application of a bed tax on short-term rental accommodation following media speculation on the subject. Stayz supports this decision.

In response to the media speculation, Stayz said that a tax on holiday homes will fail to address the questions about housing accessibility and affordability in South Australia.

Rather than a new tax, Stayz advocates for statewide regulation that contains a simple register of all short-term rental listings, a code of conduct that is backed by a strikes-based disciplinary regime and consistent planning rules for the breadth of the industry.

Stayz looks forward to engaging with the SA Government to build a statewide regulatory response for our growing sector.

Work continues on implementation of NSW regulations

Stayz continues to impress on the NSW Government the need to work with the sector on the implementation of its new regulatory regime.

While Stayz supports much of the reform package, we are concerned about the Government’s fragmented and incomplete implementation of the new rules. This is critical for platforms like us to have the systems, processes and technology build in place to be operational on day one of the regime.

We will keep partners updated as pertinent information about the implementation of the new regulations becomes available.

Moira Shire Council flags possible local law for short-term rentals

On 3 March 2021, Moira Shire Council in Victoria flagged that it was considering the implementation of a local law for short-term rentals. The local law would require the registration of holiday rentals in area.

While Stayz understands the drivers behind this potential course of action, we would rather see action at State Government level.

Our proposed statewide regulatory solution, that contains a register and code of conduct, will impose accountability on the entire sector and enable regulators to deal with complaints about amenity swiftly and decisively.

We will continue to watch these developments closely and inform local partners of any updates.

Tasmania data-sharing regime paying dividends

In December 2020, the Tasmanian Government released its quarterly housing report that showed the value of short-term rental accommodation in that state.

The factual report painted a clear picture about the total number of properties used for short-term rental. An analysis of the findings showed that only 0.95 per cent of Tasmanian dwellings are not available on the long-term housing market as a result of our industry. This is far less than the commonly cited numbers by other commentators, who often overstate our industry’s impact on housing accessibility and affordability.

The data-sharing regime is an effective resource for all levels of government to progress informed policy about housing, and we’ve encouraged all stakeholders to make use of this data before jumping to incorrect conclusions.

As 2021 gets into full swing, Stayz is gearing up for state governments to continue examining regulatory approaches for the short-term rental sector. Stayz is working closely with regulators to press our case for sensible, light-touch regulation.

Around the country, several states have work programmes focussed on our industry. In New South Wales, the new Code of Conduct came into force late last year and we remain engaged with the government on the implementation of its long-promised register of all properties. We are also engaging constructively with the recently re-elected Queensland Government to recommence the industry-led regulatory process that has proposed sensible reform for our industry in recent times. In Western Australia, we look forward to engaging in constructive conversations to implement the recommendations of the Parliamentary Enquiry that the Government accepted in early 2020. Finally, we continue to work with the Tasmanian Government to refine its nation-leading data-sharing regime, which is already proving to be an effective resource for policy-makers.

NSW Code of Conduct – update on Exclusion Register

NSW Fair Trading has announced the exclusion register, which we understood was to go live with the Code of Conduct tomorrow, will now be delayed until mid-2021 to coincide with the commencement of the premises register. Read the Statement of Regulatory Intent from the Fair Trading Commissioner.

New NSW Code of Conduct commences on 18 December

The NSW Government’s long-awaited Holiday Rental Code of Conduct will come into force in just a matter of days. We’ve compiled the following information for you:

• Vrbo/Stayz: Explainer: Changes to NSW laws for short-term rentals and Stayz’s concerns This article will help you understand the changes, some of our concerns and how you can help influence fair and sensible regulation of our industry.
• NSW Fair Trading: Changes to laws for short-term rental accommodation 
• NSW Fair Trading: Code of Conduct for the Short-term Rental Accommodation Industry 
• NSW Fair Trading: NSW short-term rental accommodation changes – communication pack 
• Vrbo/Stayz Media Release: New holiday rentals rules only half-way there; risking confusion, complexity ...

Coffs Harbour City Council backs Mid-North Coast tourism sector

On 12 November 2020, Coffs Harbour City Council voted to retain its current approach to short-term rental accommodation in the region. This means all short-term rental accommodation listings will continue to be available 365 days a year in the tourist destination.

Stayz is supportive of this decision, and we believe it will provide a welcome boost to the tourism sector in the region. In particular, we are heartened by the fact that Council recognised that the NSW Government should do the heavy lifting on regulation for our growing industry.

In recognition of this decision, we believe the NSW Government should now fulfil its side of the bargain and finalise the full suite of regulations for the growing holiday rental sector, particularly the register of all holiday rental listings.

Byron Shire Council progresses further changes to proposed 90-day night cap

On 19 November 2020, Byron Shire Council’s Planning Committee voted to continue to progress its proposal to restrict the availability of short-term rental accommodation to 90 days in several precincts, while allowing holiday homes in other areas to operate 365 days a year.

In February 2019, the NSW Government announced that Byron Shire would receive an exemption that allowed it to apply for a 90-day night cap for short-term rental accommodation.

Stayz believes Byron Shire Council would be better served by the full suite of reforms to short-term rental accommodation, rather than a counterproductive night cap, in many parts of the well-loved holiday destination.

Rather than a night cap, Stayz believes that Byron Shire should follow Coffs Harbour City Council’s lead by allowing short-term rental accommodation all year round and leave the NSW Government to do the heavy lifting on regulation for our growing industry.

Explainer: Changes to NSW laws for short-term rentals and Stayz’s concerns

As you may have heard in the media, new laws for short-term rental accommodation (STRA) in NSW will come into effect from 18 December 2020. These new laws impose obligations on booking platforms (like Stayz), holiday rental owners/managers (like you), letting agents and guests. We’ve put together this document to help explain the changes and some of our concerns.

What is changing?

A mandatory Code of Conduct for the Short-Term Rental Accommodation Industry will apply from 18 December 2020. This will impose certain behaviour standards on STRA guests and their visitors regarding unreasonable noise, disruption to neighbours and damage to property. Holiday rental owners have several new obligations under the code, including:

• You must hold insurance that covers your liability for third-party injuries and death. Please note that we already provide you with third-party claims protection for bookings made through Stayz, for up to US$1,000,000. 
• You must enable your neighbours to contact you, or your authorised representatives, about concerns relating to your premises, by giving them your contact details and being available between 8am and 5pm each day and at all times to deal with emergencies.
•  You must take reasonable steps to ensure that your guests meet their behaviour obligations in the code, including making them aware that the code applies to their stay and making a copy of the code readily available to them. 
• You must ensure that you do not rent out your premises to a guest who is recorded on the exclusion register. 

Property managers have similar obligations and must inform owners and guests about the Code.

Our summary of these obligations is not comprehensive, nor is it legal advice. We advise all owners and property managers to familiarise themselves with the Code, particularly their obligations in Sections 2.3 and 2.4, respectively.

The new code of conduct was designed to be introduced in tandem with an STRA premises register; however, NSW Planning has failed to deliver this new tool in time. Once this is developed and commences, owners must register themselves and their premises.

Importantly for holiday rental owners/managers like you, breaches of the code may attract penalties, including warnings or directions to take or cease certain action and fines. Serious breaches of the code may result in a ‘strike’ against an owner and/or their property. Two strikes in a two-year period will result in a listing on the exclusion register, which means the person or property is prohibited from participating in the short-term rental accommodation industry for up to five years.

For what Stayz’s concerns are, how we’re addressing these concerns and what’s next, click through to the full article here.

New NSW Code of Conduct released, due to commence on 18 December

The NSW Government’s long-awaited Holiday Rental Code of Conduct is scheduled to come into force later this year on 18 December 2020.

For the past several years, Stayz has been working with the NSW Government and other stakeholders on the final text of the Holiday Rental Code of Conduct.

While Stayz supports the text of the Code of Conduct, we believe the Government’s failure to implement a register of all short-term rental accommodation properties will create confusion in our industry. Without the register, complaints about anti-social behaviour will be difficult to act upon and government will still have an incomplete picture of our growing industry. This will mean that the most commonly cited questions about our industry will remain unresolved, which will fuel calls for disadvantageous regulation that will harm our sector.

Also, the short implementation period of the Code of Conduct will leave some partners scrambling to be compliant with their obligations, right on the eve of the most important peak holiday season for the tourism sector in living memory. We will do our best to assist partners who list with us to be compliant with the new Code of Conduct.

Stayz will keep partners updated about developments on this important topic. Information about the Government’s plans can be found at the following link. Additional information can be found in the post immediately below.

NSW Code of Conduct released

The NSW Government has announced a new Code of Conduct for short-term rental accommodation will start on 18 December 2020 to better manage and address:

• Anti-social behaviour 
• Amenity impacts (including in shared facilities, such as pools and gyms) 
• Other issues experienced by neighbours and communities

There are new requirements under the Code for all industry participants including hosts, guests, letting agents and booking platforms. The Code allows the Fair Trading Commissioner to take disciplinary action against participants who breach the Code, including listing people who commit two serious breaches (‘strikes’) within a two-year period on an exclusion register. People on the exclusion register will be banned from participating in short-term rental accommodation for five years.

Here are important resources from this announcement, as well as Vrbo/Stayz statement in response:

• More information can be found at the following link.

Vrbo/Stayz has been closely involved in and supportive of Government efforts to bring structure and certainty to the way STR operates. We remain strongly supportive of the work to bring a Code of Conduct and Register of properties into operation in NSW. However, we have grave reservations about the introduction of this important suite of measures being introduced in a piecemeal fashion because it risks:

1. Undermining confidence in the scheme before it is fully implemented; and 
2. Will (by the Government’s own admission) not be enforced until all measures are operating.

For this reason, we urge the Government to delay introduction to ensure that the strong and enforceable scheme, which all stakeholders agreed through years of negotiation, is ready to go.

We will continue to keep our Partners informed of any further developments.

NSW Code of Conduct due to commence soon

The NSW Government’s long-awaited Holiday Rental Code of Conduct is scheduled to come into force later this year.

For the past several years, Stayz has been working with the NSW Government and other stakeholders on the final text of the Holiday Rental Code of Conduct. We are confident the new Code of Conduct will give the community more certainty that complaints about bad behaviour in short-term rental accommodation will be dealt with swiftly and decisively.

This step is a positive one for the sector and will address some of the reasons that have led to local councils seeking to impose localised restrictions on our sector.

The final text of the Code of Conduct is yet to be released to the public by the NSW Government; however, we will be sure to inform NSW partners once it is released.

Yarra Ranges Council passes short-term rental local law

On 27 August 2020, Yarra Ranges Council in Victoria passed a new local law to help manage amenity issues in short-term rental accommodation.

The Neighbourhood Amenity Local Law sets out a strikes-based disciplinary regime for short-term rental accommodation in area. As part of this new regime, Yarra Ranges Council will now act on short-stay accommodation properties upon receipt of three nuisance complaints (with evidence) per 12-month period.

While Stayz prefers state-wide regulation for our industry, we support this measure as a template for action by the Victorian Government.

Read more about this change

Noosa Council passed revised local law

On 20 July 2020, Noosa Council in Queensland passed a new local law to regulate the day-to-day operations of short-term rental accommodation in the area.

The Noosa Plan contained a number of changes, including the below elements:

• Tougher planning approval requirements for new short-term rental accommodation and the granting of existing use rights for current short-term rentals. A move that will curb the availability of short-term rentals over time. 
• An easier ride for primary and hosted short-term rental accommodation under planning requirements, amenity regulations and day limits. This will mean the regulatory framework will only apply to one market segment and, as a result, many properties will not be covered by new regulations. 
• Several new amenity measures, like occupancy limits and nominated contact requirements.
• More information can be found at the following link. 

Night caps under consideration at Coffs Harbour City Council

On 16 June 2020, Coffs Harbour City Council released an options paper about regulation for the short-term rental accommodation sector in the NSW North Coast holiday hotspot.

The Council proposes two options: either retain the 365-day threshold for the availability of short-term rental accommodation or restrict the sector to 180-days per year.

While Stayz understands the desire for action by Council, we believe that night caps will fail to resolve the most commonly cited questions about holiday rental accommodation. As a result, we believe the Council should retain the 365-day threshold for the availability of holiday rental accommodation.

Night caps and other use restrictions 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 our industry, namely: housing affordability, housing availability, the impact on government resources and service provision and, finally, impact on neighbourhood amenity.

We support Coffs Harbour City Council in their desire to get better certainty about the rules for short-term rentals but urge them to wait until NSW Government introduces its register for short-term rentals and let the data that is collected point to solutions that will address the key concerns of locals.

Read the proposed regulation here

Kiama Municipal Council flags potential 180-day night cap

At a meeting on 21 July 2020, Kiama Municipal Council passed a motion to commence work on an application to the NSW Government to restrict short-term rental accommodation in the NSW South Coast holiday destination.

As is the case in Coffs Harbour, Stayz does not support night caps and we believe that night caps will fail to resolve the most commonly cited questions about holiday rental accommodation. Night caps and other use restrictions 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 our industry, namely: housing affordability, housing availability, the impact on government resources and service provision and, finally, impact on neighbourhood amenity.

Stayz believes Kiama Municipal Council should wait until the NSW Government introduces its register of short-term rentals and let the data that is collected point to solutions that will address the key concerns of locals.

It is unclear whether Kiama Council has begun such work, and Stayz will be closely following developments on this matter.