Update on New Rules for Short Term Accommodation

22 APR 2021


On 15  February 2021 we published an article about the commencement of a new Code of Conduct for short term rental accommodation which was to introduce new minimum standards of behaviour and requirements for all participants in the short-term rental accommodation industry. 

At the start of April 2021, the NSW Government released the final part of the planning framework for short-term rental accommodation, to add to the Strata Schemes Law and Code of Conduct regulatory frameworks already introduced (Parts 1 and 2 respectively of the framework).

Part 3 of the framework involves amendments to State Environmental Planning Policy (Affordable Rental Housing) 2009 pursuant to State Environmental Planning Policy (Affordable Rental Housing) Amendment (Short-term Rental Accommodation) 2021 which commence on 30 July 2021. 

The amendments will introduce a new definition for short-term rental accommodation, and establish an exempt development pathway for hosted and non-hosted short-term rental accommodation (confirming the circumstances in which owners can use their property for short-term rental accommodation without needing development consent from the council).

The amendments will also introduce a cap of 180 days per year that a dwelling can be used for non-hosted short-term rental accommodation, where the property is located within a “prescribed area”, which is defined in clause 51D of the amending instrument to include the following locations:

(a)          the Greater Sydney Region,

(b)          Ballina local government area,

(c)          Bega Valley local government area,

(d)          Byron local government area,

(e)          Dubbo Regional local government area,

(f)           City of Newcastle local government area,

(g)          land in the Clarence Valley local government area shown edged heavy black on the Clarence Valley Short-term Rental Accommodation Area Map,

(h)          land in the Muswellbrook local government area shown edged heavy black on the Muswellbrook Short-term Rental Accommodation Area Map.

Although local councils have expressed initial disappointment in not being given greater control of short-term rental accommodation within their local government areas, they are pleased to see the introduction of a compulsory short-term rental accommodation register (established under clause 186X of the Environmental Planning and Assessment Regulation 2000) which will assist councils in identifying which properties are being used for short-term rental accommodation and for how many nights per year.

For further information on these planning and environmental law updates, please contact Adam Seton on aseton@marsdens.net.au or (02) 4626 5077 and David Baird on dbaird@marsdens.net.au or (02) 4626 5077.

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.  

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