The NSW Government is implementing a new regulatory framework for short-term rental accommodation (STRA). This includes a state-wide planning framework, a mandatory Code of Conduct and changes to strata legislation. The NSW Government is also considering the introduction of a new industry-led STRA property register.
The framework intends to ensure local communities enjoy the economic benefits of STRA, while managing potential adverse impacts.
The Department of Customer Service and the Department of Planning, Industry and Environment welcomed feedback on the draft framework, including the mandatory Code of Conduct.
The exhibition is now closed. Thank you to all who provided feedback, submissions are now under consideration.
The draft Code, draft amendment regulations and STRA property register were also on exhibition.
All key documents exhibited can be accessed via the planning portal.
The proposed changes include:
Feedback was also sought on the potential scope of a new industry-led STRA property register.
The Government has investigated policy options in response to the growth of STRA in NSW.
This included a Parliamentary Inquiry into the Adequacy of the Regulation of Short-term Holiday Letting in New South Wales in 2015-16 and inviting feedback on an Options Paper between 21 July and 21 October in 2017. Submissions made in response to the Options Paper can be viewed at Department's Plans and Policies website.
On 5 June 2018, the NSW Government announced a new regulatory framework for STRA in NSW, including a state-wide planning framework, changes to strata legislation and a mandatory Code of Conduct.
The new rules applying to a state-wide planning framework and mandatory Code of Conduct have not yet come into force.
Changes to strata legislation commenced on 10 April 2020.
On 10 April 2020, amendments commence to the Fair-Trading Act 1987, Strata Schemes Management Act 2015 and the Residential Tenancies Act 2010.
These changes allow owners corporations to be able to pass by-laws that prohibit short-term rental accommodation within strata schemes, but only in lots that are not a host’s principle place of residence.
Short-term rental accommodation arrangements of three (3) months or less will not be regulated under the residential tenancies laws.
On 14 August 2018, the NSW Parliament passed the Fair Trading Amendment (Short-term Rental Accommodation) Act 2018 (the Act). The Act allows for:
Following this, the Department of Customer Service developed a draft Code with input from key government agencies and an advisory committee consisting of:
The Department of Customer Service has decided not to introduce the Code of Conduct at this time. The Code, state-wide planning framework and STRA property register are still being finalised and will commence later in 2020.
On 5 October 2018, the Department of Planning, Industry and Environment exhibited an Explanation of Intended Effect which outlined proposed amendments to planning rules to introduce the STRA planning framework.
The proposed amendments to planning rules included:
The Department has published submissions received at Department's Plans and Policies website.
On 11 February 2019, the former Minister for Planning announced a new Ministerial Direction that invites Byron Shire Council to prepare a Planning Proposal that could introduce a 90-day threshold in the most impacted towns of the Local Government Area.
The Direction is in response to the high concentration and unique impacts of STRA on some parts of the Byron Shire. The Planning Proposal process will include impact assessment and consultation with communities.
For more information you can:
Page last updated: 29/09/2020