How does Airbnb work in Australia? A guide to local rules

Airbnb has taken the Australian short-term rental market by storm, offering property owners innovative ways to generate income. With over 70,000 listings across the country, from bustling city suburbs to quaint regional towns, Airbnb has become a go-to for travellers and property owners. 

Navigating the Airbnb world in Australia involves a deep dive into a complex array of state-specific rules and regulations. From registration requirements in New South Wales to development approvals in South Australia, the rules vary widely. So, before you start hosting on Airbnb, make sure you're aware of all the details, particularly laws and regulations, that can impact your Airbnb hosting.

How does Airbnb work in Australia?

‍Permits, planning, and paperwork

Depending on your location in Australia, you may need different planning approvals or permits for your Airbnb property. This varies significantly from state to state, with some regions requiring specific permits for short-term rentals. Ensuring compliance with local council regulations is essential.

Working with companies that manage Airbnbs can help you navigate the various rules and regulations involved with onboarding your short-term rental, which 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’ accommodation. Each state in Australia has its own set of regulations concerning these licenses.
• Building and housing standards: Meeting the minimum standards for building and housing is a requirement for Airbnb hosts. These standards, which cover aspects like safety, hygiene, and general maintenance, are crucial not just for legal compliance but also for ensuring guest safety and comfort. Depending on your state and local council, these regulations can vary, so it's essential to familiarise yourself with the specific requirements in your area.
• ‍If you don’t own your property: In Australia, residential tenancy laws do not generally permit tenants to sublease without the landlord's consent. This is crucial if you're not the property owner but wish to host on Airbnb. Ensuring you have the right permissions is key to avoiding legal complications.
• ‍Insurance: Your regular home insurance likely won’t cut it for Airbnb hosting. Getting good insurance is the name of the game here, covering everything from guest injuries to Airbnb property damage. And while Airbnb's Host Protection Insurance offers a safety net, it's wise to consider additional coverage for peace of mind.
• ‍Landlord-tenant laws for longer stays: When hosting longer stays, 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. Understanding your rights and responsibilities as a landlord in these situations is crucial.
• ‍The difference in renting options: The type of rental you offer on Airbnb - whether it's a single room, multiple rooms, or the entire property - affects the rules and regulations you must follow. For instance, renting out a single room might not need planning approval, but renting out multiple rooms or the entire property can have different implications, especially regarding planning and zoning laws. As an Airbnb host, you must ensure your property complies with the specific zoning laws of your area.

To know more about how we can help you start an Airbnb in Australia, schedule an obligation-free chat with us and get a free earnings estimate:

‍Tax: Income and capital gains

Let's talk dollars and sense. Income earned from renting out your property on Airbnb is taxable. As a host, you must declare this income on your tax return. However, this also opens doors to tax deductions for your Airbnb such as buying furniture or service fees for Airbnb cleaning and property maintenance, which affects your pricing strategy for your Airbnb property and how profitable your Airbnb can be. Maintaining accurate records is crucial to stay on the right side of tax regulations and avoid potential legal issues.

Are you selling your Airbnb property? A slice of that sale may be subject to Capital Gains Tax (CGT). This is particularly relevant if you've generated rental income from the property. We recommend seeking advice from a tax professional to navigate these waters.

Get help navigating Airbnb rules in Australia with Hometime

Navigating the myriad of regulations and laws can be daunting for Airbnb hosts. Hometime specialises in helping property owners manage their Airbnb listings, ensuring compliance with all regulations and maximising rental income, including:

• Property onboarding: We’ll help you list your home on Airbnb as quickly as we can so you can start getting bookings ASAP.
• Listing optimisation: Our team constantly works on improving your listing using Airbnb SEO and Airbnb styling and professional real-estate photography. We also create detailed guides for your guests for a local touch that help you get great Airbnb reviews.
• Airbnb cleaning services: 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 and market experts use Airbnb dynamic pricing strategies and customised minimum night settings to optimise your revenue while increasing short-term rental occupancy at the same time. 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 maintenance issues quickly, providing alternatives for late-night arrivals, and even meeting them in person when needed!‍
• Property maintenance: Hometime’s local Airbnb experts will sort out all your maintenance needs to make both you and your guests happy. We’ll also do our best to get you the best rates for services in the area due to our close relationships with local businesses.
• Access to Hometime's all-in-one property management software to manage your Airbnb remotely.