The NSW Government is currently reviewing the STRA regulations in response to rising rents and housing shortages. While no concrete legislative changes have been enacted for 2025 as of this date, the following key areas are under serious consideration:

What’s Changing in 2025? (Proposed Changes Under Review)

1. Potential Reduction of the 180-Night Cap

1. • A key area of review is the statutory 180-night annual limitation for non-hosted STRA within Greater Sydney. A reduction in this cap, potentially to 90 nights per annum, is being seriously contemplated.
   • Proposals for even more restrictive limits, such as a 60-night cap as advocated by certain local councils (e.g., Byron Bay), may influence broader legislative changes or empower further local council action.

2. Tougher Enforcement and Penalties

1. • The government is considering the implementation of more stringent enforcement mechanisms and increased financial penalties for non-compliance with STRA regulations. This includes, but is not limited to, failure to register, exceeding permissible nightly limits, and breaches of fire safety standards.
   • An increase in proactive compliance audits is also anticipated, potentially increasing the risk for unregistered or non-compliant STRA operations.

3. Enhanced Local Council Regulatory Powers

• • A potential outcome of the current review is the conferral of greater discretionary authority upon local councils to determine and enforce STRA limitations within their respective local government areas.

1. • This could result in significant variations in STRA regulations across different regions, potentially ranging from outright prohibitions in specific zones to more permissive frameworks in others.

4. Consideration of New Levies on STRA Properties

1. • The introduction of a new levy or tax specifically targeting STRA properties is under active consideration by policymakers. This approach mirrors recent developments in other jurisdictions, such as Brisbane’s implementation of differential council rating for STRA properties.
   • The primary policy objective of such a measure is to incentivise the return of properties to the long-term residential rental market.

Implications for Strata Schemes and Lot Owners

The proposed amendments to STRA legislation carry significant implications for strata schemes and individual lot owners:

• Potential Impact on Investment Returns: Stricter nightly caps, particularly for non-hosted STRA, may directly reduce the revenue-generating potential of affected properties.
• Increased Compliance Burdens: More rigorous enforcement and potentially enhanced safety requirements could lead to increased operational costs for STRA hosts.
• Regulatory Uncertainty: The prospect of divergent STRA regulations across different local council areas may introduce complexity and uncertainty for owners with properties in multiple locations.
• Diminished Profitability: The imposition of new taxes or levies would directly impact the financial viability of STRA ventures.
• Differential Impact on Hosted STRA: Properties operating under a hosted model are likely to be less directly affected by the anticipated changes primarily targeting non-hosted arrangements.

Recommendations for Strata Schemes and Lot Owners

Given the dynamic nature of STRA regulations in NSW, it is imperative for owners corporations and lot owners to:

• Remain Vigilant: Continuously monitor official announcements and legislative updates issued by the NSW Government regarding STRA.
• Assess Investment Strategies: Evaluate the potential impact of the proposed amendments on existing and prospective STRA investments.
• Ensure Full Regulatory Compliance: Conduct thorough audits to verify adherence to current registration requirements, fire safety standards, and any applicable local council regulations.
• Engage with Legal Counsel: Seek expert legal advice from strata law specialists to understand the implications of the evolving legal landscape and to ensure ongoing compliance.
• Consider By-law Amendments: Owners corporations may need to review and potentially amend their strata by-laws in response to legislative changes or local council policies.

The anticipated amendments to NSW STRA legislation in 2025 signify a potentially significant shift in the regulatory environment. Proactive engagement with legal counsel and a commitment to staying informed are crucial for navigating these changes effectively and safeguarding the interests of strata communities and individual lot owners.

Easter 2025 and STRA Peak Period: Don’t Let Outdated STRA By-Laws Catch You Out.

Is your strata community prepared for the Easter short-term rental surge? Outdated by-laws can lead to disputes and compliance issues.

IS YOUR STRA BY-LAW UP TO DATE – DO YOU NEED A REVIEW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Is there a need to update your short-term letting by-law?

Major players, Airbnb and Stayz, in the short term rental accommodation (STRA) market have both committed to support the NSW government’s tourism levy by way of a formal submission.

However, both players are calling for all tourism accommodation operators including hotels to also foot the new tax.

The NSW government’s review of STRA is in response to growing calls for stricter regulations on the burgeoning short-term rental market, which has faced criticism for its impact on housing affordability and local communities.

The levy is structured to ensure that larger operators, who derive substantial income from short-term rentals, contribute their fair share to the local economy. At the same time, it aims to minimize the impact on small-scale operators and homeowners who rent out their properties occasionally.

For more information: Airbnb and Stayz Accept Tourism Levy for Holiday Stays

DO YOU NEED TO UPDATE YOUR SHORT TERM RENTAL BY-LAW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Short-term Rental Policies Under Review

As the NSW Government grapples with the housing crisis across the state short-term rental accommodation (STRA) comes under the spotlight.

Policies and framework for STRA in NSW will be reviewed with the hope to unlock the supply of long-term and affordable accommodation.

As such, the NSW government is looking for community feedback on the recently released discussion paper which will form part of the comprehensive review of NSW STRA.

Have Your Say…

• Complete the survey
• STRA discussion paper
• Further information

The survey completion deadline is 14 March 2024.

Review Your STRA By-laws

Do you need to review or update your current short-term rental accommodation (STRA) by-law? Speak to the STRA experts today!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

On the 9 April 2021, the NSW government announced a new statewide policy for Short Term Rental Accommodation (STRA).

The commencement of this policy has been deferred to 1 November 2021.

The new STRA laws will override all short-term accommodation planning laws previously in place throughout NSW, including those enacted by local councils. (until the policy takes effect the regulation of STRA in NSW will continue to be the responsibility of local councils and owners corporations).

The NSW Government has implemented:

• a new statewide regulatory framework for short-term rental accommodation (STRA)
• fire safety standards for STRA dwellings
• a government-run STRA Register
• the STRA Code of Conduct and exclusion register that took effect on 18 December 2020

For full details of the new policy and delays please read New Delayed NSW Short Term Rental Accommodation Policy

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Government proposes to change the laws regulating short term accommodation in NSW.

Recently, the key aspects of those new laws were published for public comment and submissions. The submission period has now closed.

In this article we take an in-depth look at those proposed changes to the laws regulating short term accommodation.

We consider the impact those changes will have on strata laws and planning laws (and strata living) and also review the key features of the Code of Conduct that will regulate participants in the short term accommodation industry.

What are the Proposed New Laws for Short Term Rental Accommodation?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

There has been considerable recent media coverage concerning proposed changes to laws regulating short term lettings in apartment buildings in NSW.

Many in the media are saying that owners corporations are going to lose the right to prohibit short term lettings in their buildings. Is that right? What does the NSW Government really have in store for short term lettings?

To read the full article – Short Term Lettings – Changes in the Air

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

• 11 Steps to Combat Short Term Letting

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.