How does Airbnb work? New Airbnb rules in Australia

A crucial aspect of Airbnb management is navigating the different short-term rental rules and regulations in Australia, which vary between states, cities, and even local councils. Before you list your property and accept bookings, make sure you're aware of all the details that could impact your hosting. Here’s what you should know about the new Airbnb rules in Australia for 2025:

General considerations

Different planning approvals or permits are required for your short-term rentals. Some basic considerations before you register your property include:

• Licenses and permits for specific accommodations: If you plan to rent multiple rooms and provide services like breakfast (akin to bed and breakfast accommodation), you might need a specific license. Similarly, relevant licenses are necessary for properties that resemble backpackers’ accommodations. 
• Building and housing standards: Meeting the minimum standards for building and housing is a requirement for Airbnb hosts, which includes safety, hygiene, and general maintenance. These are not just for legal compliance but also for ensuring guest safety and comfort.
• ‍If you don’t own your property: In Australia, residential tenancy laws do not generally permit tenants to sublease without the landlord's consent.
• ‍Insurance: While Airbnb's Host Protection Insurance offers a safety net, it's wise to consider additional coverage for peace of mind. Getting good short-term rental insurance is a must, covering everything from guest injuries to Airbnb property damage.
• ‍Landlord-tenant laws for longer stays: When hosting longer stays on Airbnb, hosts may be subject to landlord-tenant laws. These laws can influence how you manage your property and your relationship with guests who stay for extended periods.
• Property type: The type of rental you offer - whether it's a single room, multiple rooms, or the entire property - must comply with the specific zoning laws of your area. Renting out a single room vs renting out multiple rooms or the entire property can have different implications.
• ‍Tax: Income earned from renting out your property on Airbnb is taxable and you must declare this income on your tax return to avoid potential legal issues. You are also eligible to claim tax deductions for your Airbnb – this includes operational costs from buying furniture, Airbnb cleaning, and property maintenance. You may also be subject to Capital Gains Tax (CGT) if you've generated rental income from the property and have plans to sell. We recommend seeking advice from a professional to navigate taxation.

To know more about how we can help you start an Airbnb in Australia, schedule an obligation-free chat with us and get free Airbnb revenue projections for your property:

New Airbnb rules in Victoria

• Starting January 2025, a state-wide 7.5% consumer levy applies to properties booked through Airbnb, Vrbo, and other short-term rental platforms.
• For STRATA properties, owners corporations can now also vote to ban short-term rentals with a 75% majority vote from property owners if this is not the principal place of residence of the owner or occupier.
• Depending on your area, you may also be required to register and get approval from your local council. This includes short-term rental properties on the Mornington Peninsula, Bass Coast Shire (Phillip Island), and more.
• Though there are currently no Airbnb rules specific to Melbourne, there are currently discussions being held to regulate short-term rentals in the area. If you’re already working with Hometime’s Airbnb management in Melbourne, you’ll be notified of any changes as soon as possible.

New Airbnb rules in New South Wales (NSW)

• In New South Wales (NSW), all short-term rental accommodation needs to meet the regulatory requirements set by the NSW Government and register for the NSW Short-Term Rental Accommodation (STRA).
• NSW’s 180-day rule also applies for Airbnbs and short-term rentals in locations such as the greater Sydney region, Newcastle, and more. According to this rule, unhosted short-term rentals (where the host does not reside in the property) can only be rented out 180 days per year, with stays above 21 consecutive days exempted from the day limit
  
  • As Sydney is one of the largest short-term rental markets in Australia, we recommend working together with Hometime’s Airbnb management in Sydney for help in navigating its strict regulations while optimising income and occupancy.
• Unhosted short-term rentals in Byron Bay and Byron Shire are also capped at 60 days per year.

New Airbnb rules in Western Australia

• Short-term rental providers in Western Australia are required to register their properties before listing and taking bookings, regardless if it’s a hosted or unhosted property.
• In the Perth metropolitan area, unhosted rentals are limited to 90 nights a year. Owners who wish to rent unhosted properties for more than 90 nights will need to get development approval from their local council.
  
  • Talk to Hometime’s expert Airbnb management in Perth for best practices on how to run a short-term rental in the area.

New Airbnb rules in Queensland

• All short-term rental accommodations in the following areas in Queensland require approval from their local council:
  
  • Brisbane
  • Gold Coast
  • Sunshine Coast
• For more guidance on short-term rental regulations in Queensland, schedule a 1:1 chat with our Airbnb managers on the Gold Coast, Brisbane, or the Sunshine Coast.

New Airbnb rules in South Australia

• There are currently no short-term rental rules and regulations specific to properties in South Australia.

New Airbnb rules in Tasmania

• In Tasmania, unless your listing is exempt, you must get a permit from your local council. Read about the Airbnb regulations and exemptions or contact your local council. You may also schedule an obligation-free chat with our Airbnb managers in Hobart or Launceston for more information.

Get help navigating the new Airbnb regulations in Australia with Hometime

Partner with Hometime for professional advice on complying with short-term rental rules in your area, along with the following short-term rental management services:

• Property onboarding: We’ll help you list your home on Airbnb quickly so you can start getting bookings ASAP.
• Listing optimisation: Our team uses Airbnb SEO, property styling and professional real-estate photography to make your listing more bookable.
• Airbnb cleaning: We’ll find the best cleaners for regular cleans and restocking between stays, paid for using the built-in cleaning fee from the booking. No need to pay out of pocket between guest stays.
• Revenue and booking management: Hometime’s pricing analysts combine dynamic short-term rental and Airbnb pricing strategies to optimise your revenue. We also list your property on various Airbnb alternatives in Australia to further enhance your reach.
• Guest communication and management: We go the extra mile to ensure your guests enjoy every part of their stay, from making the booking, checking in, checking out, and everything in between. This includes taking care of Airbnb property maintenance issues quickly, providing alternatives for late-night arrivals, and even meeting them in person when needed!‍
• Access to Hometime's all-in-one property management software to manage your Airbnb remotely.

Frequently asked questions

Is Airbnb legal in Australia?

Yes, Airbnbs are legal in Australia. However, note that state, city, and council-specific regulations vary.

What are the new rules for Airbnb in Australia?

Different sets of STR laws and regulations apply depending on your specific location, such as council approval, maximum number of booked nights per year, and registration requirements.

New rules include maximum number of unhosted nights in Perth, Sydney, and Byron Bay.

Do I need council approval for my Airbnb in Australia?

Airbnb council rules vary per state, city, or locality. A non-exhaustive list of areas in Australia that require council approval for short-term rentals include:

• Bass Coast Shire (Phillip Island)
• Brisbane
• Byron Bay/Byron Shire
• Gold Coast
• Mornington Peninsula
• New South Wales
• Sunshine Coast
• Tasmania
• Western Australia

Can I Airbnb a rental property?

Residential tenancy laws in Australia generally do not permit tenants to sublease without the landlord's consent. If you wish to engage in rent-to-rent or Airbnb rental arbitrage, ensure that you have the right permissions to avoid legal complications.

How many days a year can you rent out an Airbnb?

This depends on your property’s location and property type. There are no limits for hosted accommodations, but note the following limits for unhosted short-term rental accommodations:

• Sydney: 180 days, excluding bookings for 21+ consecutive days
• Perth: 90 days
• Byron Bay: 60 days

We recommend consulting with a short-term rental expert or checking with your local council directly.

What’s the Airbnb 90-day rule in Australia?

The Airbnb 90-day rule in Australia, also called the Airbnb 3 month rule, is a regulation for all short-term rentals in the Perth metropolitan area that limits stays in unhosted properties to just 90 nights a year. If you own a short-term rental property in this area and want to book more than the 90-day cap, you’ll need to get development approval from your local council.

What’s the Airbnb 180-day rule in NSW?

The Airbnb 180-day rule in NSW is a regulation that limits stays in unhosted short-term rental properties in the great Sydney region, Newcastle & more to just 180 days per year.

Note that some exceptions apply: for example, bookings for 21+ consecutive days are not included in this limit.

Can Owners Corporations ban STRA in Victoria?

‍‍Yes — from 1 January 2025, Owners Corporations (OCs) in Victoria can vote to ban the use of lots for short-stay accommodation (stays under 28 days), but they must follow a strict legal process:

• A special resolution with at least 75% owner support, which must comply with the Owners Corporations Act 2006 and other laws such as council planning regulations—otherwise it may be invalid
• The results of the resolution must then be registered with Land Use Victoria before it becomes enforceable

This ban cannot apply to a lot that is the principal place of residence of the owner or occupier, so people may still short-let their own home or rooms. Once adopted, enforcement or disputes over the rule can be dealt with through VCAT.