From September 2024 non-hosted, airbnb rentals in Byron shire will be capped at 60 days per year, down from 180 days

Short-term rental accommodation in some parts of the shire on the NSW north coast, including Mullumbimby, will be restricted in an effort to lessen the area’s housing crisis.

The NSW government confirmed on Tuesday it had endorsed a proposal from Byron shire council to introduce the restrictions after a review by the Independent Planning Commission earlier this year that recommended a 60-day cap.

The government will not implement all of the planning tribunal’s recommendations, handed down in April, saying to do so “at this time” would have had “broader implications” for the whole short-term rental network across the state.

Some precincts in Byron Bay and Brunswick Heads, near beaches and services, that the council has identified as having “high tourism appeal” will not have the cap enforced, allowing homes there to be used as short-term accommodation all year-round.

Hosted short-term rentals, where the host resides on the premises during the stay, are unaffected by this decision and will still be able to be rented out for the entire year.

The government has said there will be a 12-month transition period for the community and industry to prepare before the new rules to come into force on 26 September next year.

The Department of Planning and Environment will monitor the Byron shire council’s efforts to meet its commitment to increase housing supply.

The planning minister, Paul Scully, announced the change in a statement issued on Tuesday. In it, he said he recognised short-term rental accommodation was a “complex matter” in the Byron shire but the 60-day cap would encourage more landlords to lease their properties as long-term rentals.

Speaking in Lismore on Tuesday, Scully said he had allowed Byron shire to introduce the cap after it convinced him it was “serious” about changing their own planning approvals processes to deliver “about 5,800 homes” over the “coming years”.

“The Byron situation is a unique and discreet planning proposal. This is not a change of policy on behalf of the NSW government with respect to short term rentals more generally,” he said.

The premier, Chris Minns, said the government would be “watching closely” to ensure Byron shire met its housing commitments.

“The proof is going to be in the pudding,” Minns said.

“It’s not good enough to restrict Airbnb in Byron, and then not come through with your side of the bargain.”

The state’s planning department will examine the other recommendations made by the Independent Planning Commission as part of a broader review of short-term rental accommodation later this year.

As part of this review, the government said it would consider following Victoria’s lead by imposing a 7.5% levy on short-stay accommodation, including Airbnb and Stayz, to help fund affordable housing.

The short-term rental sector is opposed to further tightening of restrictions on holiday properties.

Eacham Curry, a senior director at Stayz, said introducing the 60-day cap in the Byron shire would not get more homes on the long-term rental market.

“It will only limit accommodation options for tourists and income for mum and dad retirees,” he said.

There were 45,209 short-term rentals registered in NSW in May – an increase of 13,000 since December 2021.

Above | Byron Mayor Michael Lyon is pleased that the issue of housing availability has been recognised by the government.

Original Story By | Catie McLeod