Short-term rentals help power New South Wales’ visitor economy
Short-term rentals help power New South Wales’ visitor economy
Let’s use the rules and the data to make the system work as intended
New South Wales has a world-leading short-term rental accommodation (STRA) regulatory framework, developed with government and industry to provide strong oversight and safeguards. There is still room to strengthen how it’s enforced. Key features include:
New South Wales has a world-leading short-term rental accommodation (STRA) regulatory framework, developed with government and industry to provide strong oversight and safeguards. There is still room to strengthen how it’s enforced. Key features include:
New South Wales has a world-leading short-term rental accommodation (STRA) regulatory framework, developed with government and industry to provide strong oversight and safeguards. There is still room to strengthen how it’s enforced. Key features include:
Mandatory registration
Every residential short-term rental property in New South Wales must be registered with the state, giving government full visibility over listings and supporting consistent compliance across the system.
Code of Conduct
New South Wales’ STRA Code of Conduct applies to all hosts, guests and platforms, including a two-strike rule that can ban non-compliant hosts and guests from all platforms for five years.
Data sharing
Short stay rental platforms share booking data with the New South Wales Government, which holds consolidated booking data across all platforms. Councils can access STRA information for properties in their local area to support monitoring and enforcement.
Day caps
Unhosted STRA properties in metropolitan Sydney are limited to 180 days per year, with some regional councils able to opt in to applying the same day-cap settings.
The way forward
1.
Increase supply of housing
Across New South Wales, the core challenge is a long-standing undersupply of housing, not short-term rentals. Long-term solutions require building more homes, faster approvals, and continued work from the state government to improve planning pathways.
2.
Strengthen application of STRA framework
Meanwhile, the world-leading STRA framework should be strengthened in how it is applied — with efficient data sharing for local councils and practical support so the existing rules are well understood and effectively enforced.
3.
Let's work together
Airbnb welcomes working with the NSW Government to ensure the current system operates as intended and delivers the best outcomes for communities.
Hosting is a lifeline for many
Most hosts are ordinary Aussies, including mums and dads, for whom hosting is a means to keep up with their mortgage, pay for kids’ sports fees, and stay in the community they love. For many hosts in New South Wales, hosting provides a critical source of income that supports their family. At the same time, hosting helps sustain local businesses and strengthen communities by keeping residents in their homes and enabling more visitors to support local areas. Here are some stories of those who rely on hosting to make ends meet.
We rent out the spare bedroom in our Hornsby home. Even though we both work full-time, the extra income helps ease financial pressure - it covers our groceries and monthly needs, and makes it easier to stay on top of our mortgage.
Caroline and Daniel
I am a retired firefighter and my husband a retired crematory operator. Hosting helps us rely less on the government for a pension. We have so many memorable interactions with our guests. They also often follow our recommendations for restaurants, cafes and sights and so many of these local businesses have been positively impacted by this.
Cathryn
Hosting a room on top of my garage allowed me to work part time and be home more with my daughter when she was born. It helped us stay on top of our mortgage.
Belinda
Did you know?
85%
of NSW hosts share just one property on Airbnb¹
73%
of NSW hosts say hosting helps them meet the cost of living²
66%
of NSW hosts identify as women²
of NSW hosts identify as women²
¹ Internal Airbnb data as at 1 January 2024.² Self-reported, based on NSW Host responses to an internal Airbnb ‘Homes Host’ survey conducted between 1/4/23 - 2/3/24
Hosting fuels local jobs and community businesses
Hosting fuels local jobs and community businesses
The hosting community plays a vital role in supporting the local economy, tourism, and small businesses. A recent independent report by Oxford Economics (based on 2024 figures) found that Airbnb guest spending across NSW contributed $4.6 billion and supported 32,200 jobs.Any further regulations will have a significant impact on hosts, affecting their livelihoods, their communities and the broader economy.
The hosting community plays a vital role in supporting the local economy, tourism, and small businesses. A recent independent report by Oxford Economics (based on 2024 figures) found that Airbnb guest spending across NSW contributed $4.6 billion and supported 32,200 jobs.Any further regulations will have a significant impact on hosts, affecting their livelihoods, their communities and the broader economy.
Economic impact
New South Wales
Top sectors by GDP contribution
Australia
Top sectors by jobs supported
Australia
Day caps don’t work
Day caps don’t work
Before considering new restrictions, it’s important to look at the evidence
Byron Bay
One year after the 60-day cap, independent evaluation found no increase in long-term rentals. Bond lodgements fell 11%, and average weekly rents rose 7%, showing the cap did not achieve its intended goals.
Learn more
New York City
After strict short-term rental rules removed more than 90% of Airbnb listings, data showed vacancy rates remained unchanged at 1.9% and rents continued to rise — and hotel prices surged — showing the crackdown did not improve long-term housing availability.
Learn more
New South Wales
The NSW STRA Discussion Paper warns that day caps may lead to under-utilisation, leaving some properties vacant instead of shifting to long-term rental.
Learn more
City of Sydney
The City’s own research found that STRA is “not a major driver” of local housing pressures and often complements hotels in visitor-heavy areas.
Learn moreFrequently asked questions
What short-term rental rules does New South Wales currently have?
New South Wales operates one of the most comprehensive short-term rental regulatory systems in Australia. The statewide STRA framework includes mandatory registration, fire safety standards, planning controls, data sharing requirements, and strict compliance rules set by the New South Wales Government.
What is the NSW Short-Term Rental Code of Conduct?
The Code of Conduct outlines behaviour standards for hosts, guests, and platforms. It includes a two-strike policy that can ban repeat offenders from all STR platforms for five years.
What is the NSW STRA Registration Scheme?
The registration scheme requires every short-term rental property in NSW to be registered and listed with a unique STRA number, giving the NSW Government full visibility over STRA activity.
How do councils in New South Wales enforce short-term rental regulations?
Enforcement is shared between the New South Wales Government and local councils. Councils can access NSW’s STRA data, investigate potential breaches, verify property registration, and take compliance action where required.
Do 60-night caps or other night-caps on short-term rentals actually work?
Evidence from Australia and overseas shows night caps do not increase long-term rental supply. In Byron Bay, an independent evaluation of the 60-night cap found no increase in long-term rentals, with bond lodgements falling 11% and weekly rents rising 7%. In New York City, strict rules removed over 90% of Airbnb listings, yet vacancy remained unchanged at 1.9% and rents continued to rise - showing these policies do not deliver more long-term housing.
How can governments access Airbnb data for their local community?
The NSW Government receives detailed STRA registration and booking data from platforms like Airbnb through a statewide data-sharing system. Local councils can access this information to support compliance and enforcement, and can also use Airbnb’s City Portal for additional insights, transparency tools and community-level data.
Does Airbnb support NSW’s current short-term rental regulation?
There is room to improve how the current system operates, but the core framework is already strong. Airbnb supports making the existing rules easier to apply and enforce - through clear roles between government agencies, consistent data access for councils, and practical support for hosts and guests - rather than adding new layers of regulation. Airbnb is committed to working with state and local government to strengthen how the current system is used.
Related links
Supporting local authorities with the City Portal
The City Portal gives government officials and tourism agencies access to real-time STRA data, policy tools, and support—helping build well-regulated, community-focused short-term rental environments.
Discover the City Portal
Helping communities thrive with the Policy Toolkit
Australia’s Short-Term Rental Regulation Toolkit helps councils develop fair, balanced rules by outlining key regulatory levers, opportunities, and best-practice approaches for STRA.
Explore the Policy Toolkit
Byron Bay short-term rental accommodation cap evaluation
Independent evaluation of Byron Shire’s 60-night cap found it did not increase long-term rental supply, with rising rents and tighter vacancies after implementation.
Explore the report