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

Dive into the essentials of Airbnb hosting in Australia and discover how Airbnb works: from state-specific rules & taxation tips to making your property stand out.
June 24, 2025

Table of Contents

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 free detailed Airbnb revenue projections for your property:

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:

Frequently asked questions

What are the Airbnb regulations in my city?

Airbnb rules vary per city — this includes getting council approval, specific licenses, building code, and the like.

To know more about Airbnb regulations in your area, check with the local governing body or contact Hometime for help on listing your property on Airbnb and other similar websites.

Do I need council approval for my Airbnb in Australia?

In most of Australia, you will likely need council approval to operate an Airbnb or other short-term rentals. Reach out to your local council for more information or contact Hometime to expedite the process.

Can Hometime help me with Airbnb listing requirements?

Yes, Hometime will help you list your property on Airbnb as part of our onboarding process.

Does Hometime help owners adapt to new Airbnb rules in Australia?

Yes, our in-house teams will work together with you to ensure that your property is up-to-date with any new Airbnb rules in Australia, whether it's locally or nationally.

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're not the property owner but wish to host on Airbnb, you must ensure that you have the right permissions is key to avoiding legal complications.

Share this post
Airbnb News
Airbnb Management
Airbnb Hosting