NSW Government floats levies and day caps on short-term rentals

Revenue levies and lower day caps are among the options the NSW Government will consider in a review of short-term rental accommodation in the state.

The government, which has released a discussion paper on the issue, is looking at ways to address the growing housing crisis in NSW.

Housing affordability and availability are at their lowest levels in decades in NSW, with a report from the Productivity Commission recently reporting that Sydney was at risk of becoming a city with no grandchildren, with families being priced out of the city.

A recent Homelessness NSW study found homelessness had risen across 58 of the state’s 128 local government areas in the past year alone.

NSW Minister for Housing and Homelessness Rose Jackson said the NSW Government was taking action to strike the right balance between supporting local communities, the visitor economy and jobs, while addressing the homelessness, housing and rental crisis.

The government is seeking community input on the problems as part of its review.

“We’re determined to do everything we can to tackle the housing crisis and put every part of the housing market under the microscope for options to encourage a greater supply of long-term rental accommodation,” Ms Jackson said.

“All options are on the table and we are keen to hear from the community on how various aspects of regulatory and revenue measures can be designed to get the best outcome.”

Among the options the government is considering are higher registration fees for short-term rental accommodation, stricter approval requirements, lower day caps on the number of nights a property can be used for short-term rental accommodation and a limit on the number of homes in an area that can be used for short-stay accommodation.  

The government is also considering booking levies, day fees per guest staying in the short-term accommodation and an annual levy based on the use of the property.

“This review will inform our approach to make better use of all forms of housing, including short term rentals, vacant property and holiday homes,” Ms Jackson said.

“This includes looking at ways to move some of this housing to the long-term rental market and to minimise its negative impacts on the housing market as well as what we can do to support homelessness services across NSW.”

NSW Minister for Planning and Public Spaces Paul Scully said the government was hoping to better balance housing availability for the people of NSW with the benefits tourism brings to local communities. 

“We’re in a housing crisis, so it’s important we look at every available option to boost housing supply, including a shift from non-hosted short-term rentals to long term rentals,” he said.

“We’ve already endorsed the Independent Planning Commission (IPC) recommendation to tighten the cap on some non-hosted short-term rentals in Byron Shire, and other recommendations made by the IPC will be considered as part of this broader STRA review.”

You’ll find more information, the discussion paper and how to make a submission here

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Kylie Dulhunty

Kylie Dulhunty is the Editor at Elite Agent.