Tough new rules preventing days in a calendar year have formally come into effect today in — one of the country's In response to a dwindling number of vacant rentals, and — located in the NSW Northern Rivers — the new changes aim to crack down on investors purchasing homes with the intention of converting them into holiday rentals, including . They also aim to limit the amount of time existing owners can lease their properties to travellers. Studies showed up to 35 per cent of homeowners said they'd "change their behaviour" with the cap in place — some said they'd sell, while some would long-term let, Byron Shire Mayor Michael Lyon told Yahoo News Australia on Tuesday.
"That was under a 90-day cap proposal, so with 60 days we expect this to be a higher percentage. Also, many of these were in the budget accommodation category, meaning we will likely see some affordable places come on to the market," Lyon told Yahoo. He said it's also worth noting, according to additional research, there is higher economic benefit to the community having housing used as residential, rather than as commercial.
"This includes many social benefits too," Lyon said. "The economic benefit is spread more broadly across the economy and is all-year round, hence it’s higher." From Tuesday, September 24, owners of short-term rental accommodation, known as STRA, will be banned from leasing their homes for more than 60 days, and if they're caught in breach of these new laws, Lyon said they can expect fines in the amount of $12,000.
Council recently issued $12,000 in fines to a property owner for breaches of [the now expired] 180-day cap. Council officials are working with the state government on a register as the primary form of compliance, to ensure all stay data is properly reported. “For platforms like Airbnb and Stayz, which account for a large amount of bookings, this is seamless and integrated already," Lyon said.
While Lyon argues the new move will positively impact the community, particularly those struggling to find long-term accommodation, others say it'll devastate the tourism sector, which the area is heavily reliant on. More than two million people flock to Byron Bay each year to visit, according to council, with the shire home to just 30,000 — 9,000 of which live in the Byron town centre. .
He argued "tourism will suffer given guests will have less affordable accommodation options". "Airbnb guests in the Byron region spent over $200 million in the local community in the 12 months to March, 2023 and helped to support 800 local jobs, all the while empowering local hosts to make extra income in the midst of a cost-of-living crisis," he previously told A portion of the area will be exempt from all caps, including many of the multimillion-dollar homes in the centre of town and in the luxurious corner of Wategos Beach. A study conducted in February found there were almost 350 people sleeping rough in the town, an increase of 16 per cent year on year.
The City of Sydney reported 208 rough sleepers in the same time period in comparison, an area in which over 230,000 people live..
