If you’re an Airbnb host in Australia, you’ve likely noticed that hosting has become more complex in 2024. With new Airbnb regulations rolling out across the states, they affect everything from how you manage your property to your tax obligations. In this guide, we'll break down the key changes, including state-specific regulations, and how they might impact your hosting business.
The Airbnb Market in Australia
In 2024, the Airbnb market in Australia continues to grow, with an 11% increase in short-term rentals over the past year. This increase reflects the continued popularity of short-term rentals for tourism, work, and education. Despite the rise in listings, occupancy rates have remained steady. However, metrics like Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) show some unpredictability, reflecting a dynamic market.
Short-term rentals (STRA) have a mixed impact on housing affordability. In regions like Greater Sydney and Byron Bay, the effect is more pronounced, but in other areas, it varies depending on housing supply and economic conditions.
STRA also plays a significant role in local communities by offering flexible accommodation for work, education, and vacations. This helps local businesses and economies thrive.
State-by-State New Regulations for Airbnb Hosts in 2024
With the introduction of new Airbnb rules in Australia, managing your Airbnb property will require more attention to detail. Here’s a breakdown of the key state-specific rules you need to know:
New Airbnb Rules in Australia
In November 2023, the WA government introduced a new Short-Term Rental Register. Starting July 1, 2024, all STRA properties need to be registered by January 1, 2025. Failure to register could lead to fines, and the registry will be publicly available. In the Perth metropolitan area, unhosted rentals are limited to 90 nights a year without planning approval. Property owners who rent for more than 90 nights will need to get approval from their local council.
Additionally, the WA government offers a $10,000 incentive for property owners to convert STRA properties to long-term rentals by meeting specific criteria and offering a 12-month lease to tenants.
New Airbnb Rules in Victoria
In September 2023, the Victorian government introduced a 7.5% consumer levy on short-term accommodation bookings, which will take effect in January 2025. This tax is intended to fund more social housing. Several local councils, including Frankston and the Mornington Peninsula, have also introduced an annual fee for short-term rental hosts, adding compliance costs for Airbnb owners.
New Airbnb Rules in New South Wales
NSW has enforced a 180-day cap on unhosted short-term rentals in Greater Sydney and several regional areas. In Byron Shire, this limit will drop to 60 days per year starting September 2024 to help address housing shortages. Hosts in these regions are required to register their properties.
New Airbnb Rules in Queensland
Queensland completed a review of short-term rentals in 2023. While no caps have been introduced, the state is considering a new registry for Airbnb hosts, similar to Western Australia's approach. Areas like the Gold Coast and Sunshine Coast remain popular for STRA, but hosts should monitor local Airbnb regulations as they evolve.
New Airbnb Rules in South Australia and Tasmania
While South Australia is currently observing the outcomes of other states' regulations, Tasmania has announced a 5% levy on short-stay accommodation, payable by travelers starting in 2024. This levy will contribute to a first-home buyers program, offering a new dynamic for property owners in the region.
Short-term Rental Tax
You need to report all income from short-term rentals to the Australian Taxation Office (ATO). Additionally, hosts can claim expenses such as mortgage interest, utilities, and property management fees. However, the amount you can claim depends on the percentage of the property rented and for how long.
Planning Approval Requirements
Hosted STRA: No development approval is needed if you’re present during guest stays.
Un-hosted STRA: In areas like Perth, unhosted rentals are limited to 90 days per year without planning approval. Local governments may impose different rules depending on the region.
Incentives for Long-term Rentals
In Western Australia, the government is offering $10,000 for property owners who convert STRA homes into long-term rentals. To qualify, properties must meet specific conditions, including a minimum 12-month lease for tenants. This program aims to increase housing availability in high-demand areas.
What is Airbnb 90-Day Rule Australia?
The Airbnb 90-day rule in Australia limits unhosted short-term rentals to a maximum of 90 nights per year in certain regions, such as Western Australia and parts of New South Wales. If property owners want to rent for more than 90 nights annually, they must obtain planning approval from their local council. This regulation is designed to strike a balance between supporting tourism and addressing housing shortages. In Western Australia, property owners renting beyond 90 nights without approval may face penalties, while New South Wales enforces the rule in various areas, including Greater Sydney. Some locations, like Byron Shire, have even stricter limits, such as a 60-day cap for unhosted rentals. It's crucial for Airbnb hosts to understand and comply with these local regulations to avoid fines and ensure their property remains available for short-term rentals.
How These Changes Affect You
These new regulations could impact your Airbnb hosting in several ways:
Income Potential: Limits on rental days in regions like Byron Bay and Sydney might reduce your short-term rental income.
Competition: With incentives for long-term rentals, you might see increased competition from properties converted to long-term rentals.
Compliance Costs: Adhering to new rules may involve additional costs and adjustments to your hosting practices
Tips for Compliance
To make compliance easier:
Stay Updated: Keep track of regulatory changes through government sources and industry news.
Check Eligibility: Ensure your property meets the new criteria for registration and incentives.
Use Digital Tools: Property management software can help track bookings and generate necessary reports.
Communicate Clearly: Set clear policies for guests about local rules and property guidelines.
Staying informed and using the right tools can help you navigate these changes smoothly, ensuring your Airbnb business thrives despite the new Airbnb laws in Australia.
Expert Insights from Industry Leaders
Keiran Craig-Jones, Executive Director at the Short-Term Accommodation Association Australia (STAAA), highlights the importance of staying proactive. "It's crucial for hosts to keep track of local regulatory changes and adapt their business strategies accordingly." Keiran advises subscribing to email notifications from local governments and using compliance tools to ensure ongoing success in the Airbnb market.
Staying informed and using the right tools can make navigating these changes a breeze, keeping your Airbnb business thriving. Want to know how property management software can make a difference? Reach out and consult with RightKeyBnB for expert advice!