The NSW Government manages a state-wide regulatory framework for short-term rental accommodation (STRA), which includes:
- a planning framework
- fire safety standards for STRA dwellings
- a government-run STRA Register.
The state-wide policy for STRA benefits homeowners who want to take advantage of holiday rentals while providing more certainty and safety for local communities and visitors.
The laws impose obligations on all industry participants, including booking platforms, hosts, letting agents and guests.
Review of short-term rental accommodation framework
The NSW Government is undertaking a review of the regulatory framework for short-term rental accommodation (STRA) in NSW.
In early 2024 we sought feedback on the planning policy and regulatory framework for short-term rental accommodation and options to encourage the supply of long-term rental accommodation. We exhibited a discussion paper from 15 February to 14 March 2024 via the NSW Planning Portal.
A public discussion paper and an online questionnaire were exhibited from 15 February to 14 March 2024 on the NSW Planning Portal. The discussion paper sought feedback on the planning policy and regulatory framework for STRA and options to encourage the supply of long-term rental accommodation.
We received over 430 submissions and more than 2,400 survey responses to the online questionnaire. We have heard from councils, booking platforms, property owners, and the tourism sector, among others.
We thank all stakeholders involve d in the consultation process. Your views are important to the NSW Government.
We are now considering all submissions and investigating policy changes to help unlock housing supply and improve housing affordability in NSW.
Feedback received will help make sure we strike the right balance between the benefits of short-term rental accommodation, including to the tourism economy, and encouraging more supply of long-term rental accommodation in NSW.
Any changes will be considered and calibrated in the context of the government’s recently announced broad investments in housing, homelessness, rental support and protection, and in the planning system.
As announced in the 2024–25 Budget, the government is investing:
- $5.1 billion to build 8,400 new social homes
- $1 billion to repair 33,500 existing social homes
- $655.1 million for key worker build to rent accommodation across metropolitan areas of the state and for key health worker accommodation across rural and regional areas
- $555.5 million to speed up the planning system and construct more housing enabling infrastructure
- $527.6 million for emergency housing and homelessness support services
- $11.8 million to support the growing number of renters in apartments with an expanded Strata & Property Services Commissioner, as well as $8.4 million for the Rental Commissioner to develop and enforce renter protections.
And in July, after a comprehensive consultation process with more than 16,000 submissions and survey responses received from the general public, the government announced new laws to help make renting fairer, including:
- Ending no grounds evictions: under new laws, if the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
- Extending notice periods: under new laws, the termination notice period to tenants on fixed term agreements of less than 6 months will be increased from 30 days to 60 days, and for fixed term agreements of more than 6 months, the termination notice period will be increased from 60 days to 90 days.
- Introducing a Portable Rental Bonds Scheme: the Rental Commissioner is leading the development of the Scheme to make it easier for renters to move between rental homes by allowing eligible tenants to digitally transfer their existing bond to their new home.
The government will begin stakeholder engagement on these changes and will aim to introduce new legislation in the September sittings of Parliament. These changes are expected to begin next year.
Current short-term rental accommodation framework
The STRA planning policy framework comprises standard provisions for short-term rental accommodation including:
- a definition for STRA, hosted STRA and non-hosted STRA
- an exempt development pathway for hosted and non-hosted STRA, including an annual 180-day limit for non-hosted STRA based on location
- an exemption of bookings of 21 consecutive days or more from the day limits for non-hosted STRA
- fire safety standards for dwellings used for STRA and associated penalty notice offences for non-compliance
- a government-run STRA Register that will ensure compliance with the new fire safety standards, as well as tracking day limits of each STRA dwelling and provide details to assist local councils with monitoring STRA in their local government areas (LGA).
The planning framework came into effect on 1 November 2021 and complements the mandatory code of conduct and changes to strata legislation made by the Department of Customer Service.
More information about the existing STRA planning policy framework is provided in the frequently asked questions (PDF, 183 KB).
Definitions
The State Environmental Planning Policy (Housing) 2021 – also known as the Housing SEPP – includes the following definitions:
Short-term rental accommodation means a dwelling used by the host to provide accommodation in the dwelling on a commercial basis for a temporary or short-term period.
Hosted short-term rental accommodation means short-term rental accommodation provided where the host resides on the premises during the provision of the accommodation.
Note: The owner needs to be living on the property but not necessarily in the home being rented, for example homeowners who live on a property with a granny flat are able to rent out the granny flat 365 days of the year.
Non-hosted short-term rental accommodation means short-term rental accommodation provided where the host does not reside on the premises during the provision of the accommodation.
Note: Individual units in a premises where there is an onsite manager or concierge are generally considered as non-hosted.
Compliance
Planning framework
All local councils in NSW have access to the STRA Register and have a role in enforcing the planning framework. Your local council can be contacted if you have an inquiry or compliance concern relating to the:
- STRA planning rules, including reporting an unregistered STRA premises
- STRA Fire Safety Standard, such as missing smoke alarms, emergency evacuation information or fire extinguisher.
Ongoing neighbourhood noise complaints can also be referred to your local council or the police.
STRA Register
All STRA properties must register on the STRA Register. A registration fee of $65 applies for all new registrations. STRA property registrations must also be renewed annually from the date of the original registration to remain active on the STRA Register. A renewal fee of $25 applies.
Approved tourist and visitor accommodation development, such as serviced apartments, bed and breakfasts, hotels, motels, camping grounds or caravan parks, are not required to register for STRA.
Register below to the government register on the NSW Planning Portal. You will need to create a NSW Planning Portal account or log-in with your Service NSW account.
All hosts must first ensure the dwelling they propose to use for STRA complies with the fire and safety requirements and agree to follow the code of conduct.
The following links go to information in English.
- Read the short-term rental accommodation fire safety standard fact sheet (PDF, 156 KB).
- Read the code of conduct on the NSW Fair Trading website.
An annual STRA Registration period applies from the date a premises is registered on the STRA Register.
More information about how to register is on the NSW Planning Portal.
A STRA Registration can be renewed on the NSW Planning Portal from 45 days before the renewal expiry date. Hosts will receive email reminders to renew their registration at 45 days, 30 days and 7 days prior to the renewal expiry date.
If a premises is not renewed by the expiry date, the registration is held for a further 3 months before it is automatically de-registered. During the 3-month period, the registration is blocked from accepting bookings from online booking platforms. Once the property is de-registered it cannot be renewed and a new property registration must be completed.
Further information on renewing a STRA premises registration is available on the NSW Planning Portal.
To transfer a STRA registration, the previous owner needs to deregister the current registration, allowing the new owner to create a new property ID.
Note: If there are future bookings linked to the property ID, these will need to be cancelled before the previous owner deregisters the property.
For more information on either the deregistration or registration of a STRA property, view the Quick Reference Guides on the NSW Planning Portal.
The STRA Register contains personal information. Host or premises details are not available to the general public.
The information contained within the register may be provided to the Department of Customer Service and local government authorities who may use the information for statutory purposes, including to take action to address fire safety concerns of persons occupying a dwelling as short-term rental accommodation or to enforce the mandatory code of conduct.
All lawfully constructed dwellings that are permitted to be used as residential accommodation in all land-use zones can use the exempt development pathway for short-term rental accommodation (with exceptions – see 'What kinds of dwellings cannot use the exempt development pathway for STRA under the policy?'
Typical residential accommodation dwelling types include:
- a dwelling house (free-standing house), an attached dwelling, or a semi-detached dwelling
- a dual occupancy
- multi-dwelling housing
- a residential flat (such as a unit in a block of flats)
- a secondary dwelling (such as a granny flat)
- housing above shops.
If you are unsure of your dwelling type, contact your local council for assistance.
The following dwellings are not permitted for short-term rental accommodation under the rules:
- boarding houses
- seniors’ housing
- rural workers’ dwellings
- group homes
- hostels
- refuge or crisis accommodation
- build-to-rent housing
- co-living housing
- moveable dwellings.
Conditions of a development consent or a strata-by law may also restrict STRA in some residential premises. Hosts are encouraged to contact their local council for development consent information or their owners corporations and NSW Fair Trading for further information on accessing strata-by laws.
STRA is not a tourist and visitor accommodation land use, and a property used for STRA remains a residential premises.
Approved tourist and visitor accommodation development, such as serviced apartments, bed and breakfasts, hotels, motels, camping grounds or caravan parks, are not required to register for STRA.
These types of developments can continue to be listed on online accommodation platforms. If you are unsure of the status of the accommodation, contact your local council for assistance.
No, agritourism is a type of agricultural land use. Agritourism allows small-scale, low-impact activities in rural areas, such as farm experiences or roadside stalls.
Agritourism can also include a type of short-stay accommodation, defined as farm stay accommodation, which is a tourist and visitor accommodation land use. These activities support the main use of the site as a farm and do not fall within the definition of short-term rental accommodation.
Fire safety standards
Dwellings proposed to be used for STRA are required to comply with the fire safety standards.
The fire safety standards are enacted by the Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021 which:
- provide minimum fire safety standards for STRA dwellings and associated penalty notice offences for non-compliance
- require all STRA dwellings to comply with the relevant fire safety standards, including the requirement for all STRA dwellings to an evacuation plan and interconnected smoke alarms and
- require all STRA dwellings to be registered on the Government-run STRA Register to confirm compliance with the new fire safety standards.
Learn more about the Fire Safety Standard (PDF, 156 KB).
Short-term rental accommodation in certain areas in NSW
In some NSW council areas, there are limits on the number of days that a property can be used for non-hosted STRA under the exempt development pathway.
Non-hosted STRA is currently restricted to a maximum of 180 days a year in:
- the Greater Sydney region (the Eastern Harbour City, Central River City and Western Parkland City)
- the Ballina area
- certain land in the Clarence Valley area
- certain land in the Muswellbrook area.
The maximum number of days for non-hosted STRA is counted within a registration annual period, 12 months from the initial registration date on the NSW STRA Register.
The relevant maps for land in Muswellbrook and Clarence Valley are available on the NSW Planning Portal.
Further requests to amend a non-hosted day limit are being considered as part of the policy review in 2024.
If a non-hosted STRA in these areas exceeds the day limit, STRA is no longer permitted under the state policy as exempt development.
Local councils can monitor the STRA Register to establish when non-hosted premises exceed the annual day limit.
If a STRA is operating as unauthorised development, a local council can begin a compliance investigation which may result in penalties or enforcement action under planning laws.
New cap for Byron Shire commencing 23 September 2024
From 23 September 2024, non-hosted STRA using the exempt development pathway in most of the Byron Shire local government area will be restricted to a maximum of 60 days a year.
This change was announced in response to a proposal from the Byron Shire Council to reduce the number of days a dwelling within the area could be used for non-hosted STRA.
For more information on the new STRA provisions in Byron Shire, visit our page about Byron Shire.
Code of conduct
The mandatory Code of Conduct for the Short-term Rental Accommodation Industry (code) started on 18 December 2020.
It is administered by the Commissioner for Fair Trading in the NSW Department of Customer Service.
The code sets out the legal responsibilities and creates new minimum standards of behaviour and requirements for all industry participants, including:
- booking platforms
- hosts
- guests
- letting agents and facilitators.
For information about the code, visit NSW Fair Trading.
STRA Exclusion Register
The code also establishes the STRA Exclusion Register which commenced in August 2022.
The STRA Exclusion Register is a list of guests and hosts who have been excluded from participating in the short-rental accommodation industry.
For more information about the STRA Exclusion Register, visit NSW Fair Trading.
Information for online booking platforms
The department invites all online STRA booking platforms to consider integration options with the STRA Register. Integration with the STRA Register has the following benefits:
- Verification that advertised premises have a current STRA registration.
- Automatic transfer of booking information to the register to make it easier for hosts to manage compliance responsibilities.
For more information, email the Housing Policy team at [email protected]
Policy development timeline
The NSW Government has investigated policy options in response to the growth of STRA in NSW.
| March 2016 | A Parliamentary Inquiry into the Adequacy of the Regulation of Short-term Holiday Letting in New South Wales in 2015–16 |
|---|---|
| July to October 2017 | Community feedback was sought on an options paper between 21 July and 21 October in 2017. Submissions made in response to the options paper can be viewed at the department's NSW Planning Portal. |
| 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. |
| 14 August 2018 | The NSW Parliament passed the Fair Trading Amendment (Short-term Rental Accommodation) Act 2018 (the Act), which allows for:
|
| 5 October 2018 | The department 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 all submissions received on the NSW Planning Portal. |
| August to September 2019 | The department consulted on a proposed regulatory framework for STRA, including draft instruments and regulations, a draft code of conduct, proposed strata legislation amendments, and the scope of a property registration system. Over 2,000 submissions were received by the department during this exhibition period. There was general support for a state-wide regulatory framework, however views differed as to the extent of regulation, detailed controls and how regulation should work. Shortly after this, the STRA sector has suffered a significant blow as a result of the 2019/2020 summer bushfires and subsequent COVID-19 pandemic. In response to feedback received during stakeholder consultation and the COVID-19 pandemic, the new policy framework achieves a balanced outcome to ensure businesses and homeowners get back on their feet as restrictions continue to ease by providing clarity, consistency and certainty ahead of summer. |
| 10 April 2020 | Amendments were made 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. |
| 27 October 2020 | The Minister for Better Regulation and Innovation announced amendments to the Fair Trading Regulation 2019 declaring the new mandatory code of conduct for the short-term rental accommodation industry. |
| 18 December 2020 | New mandatory code of conduct commenced and imposes obligations on booking platforms, hosts, letting agents and guests. |
| 9 April 2021 | The STRA policy and register was announced and available for hosts for review. |
| 1 November 2021 | The STRA planning policy commenced. All hosts wishing to participate in STRA must register their dwellings via the register and ensure compliance with the new fire safety standards by 1 March 2022. |
| 31 January 2022 | The statewide STRA planning policy commenced in the Byron Shire LGA. |
| 23 September 2023 | New provisions specific to Byron Bay Shire are introduced. The new provisions establish a 60-day non-hosted STRA cap for the entire Byron Shire LGA, except for two 365-day mapped precincts in and around Byron Bay Town Centre and at Brunswick Heads. These 365-day precincts will be mapped in the Housing SEPP. |
| February to March 2024 | The Minister for Housing, supported by the department and Treasury, is leading the review of the STRA planning and regulatory framework and options to encourage supply of long-term rental accommodation. |
| 23 September 2024 | New provisions for Byron Bay Shire commence. |
More information
- For STRA policy questions, email the Housing Policy team at [email protected]
- Phone Service NSW on 1300 305 695
- For more information and technical assistance on the STRA Register visit the NSW Planning Portal or email [email protected]
- For more information on the code of conduct, strata by-laws for STRA, and the STRA Exclusion Register visit NSW Fair Trading.
- Watch the new STRA policy webinar for councils.