REGULATORY GUIDE

Stay fully compliant with New South Wales's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
Australia
New South Wales
New South Wales
REGULATORY GUIDE

Stay fully compliant with New South Wales's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
Australia
New South Wales
New South Wales

TL;DR

Rules

How to comply

Rules, Taxes & Penalties

Upcoming Changes

FAQs

ATO: Rental income you must declare

State/council based definitions. Example: NSW STRA allows non-hosted entire homes with caps in some areas; other states differ. Check local planning rules.

Short-term rentals are legal across NSW under the STRA framework. You must register the dwelling on the NSW STRA Register and display the registration number in all listings. Hosted STRA (you live on site) can operate year-round. Non-hosted STRA is capped at 180 nights per registration year in Greater Sydney and nominated regional LGAs (exemption for bookings of 21+ consecutive days). Byron Shire has a stricter 60-day cap for most of the LGA. You must meet the STRA Fire Safety Standard (interconnected smoke alarms, evacuation diagrams and kitchen equipment for apartments). No NSW-wide tourist levy; declare income to the ATO. Strata schemes can ban non-PPR STRA by by-law.

Legality
Allowed statewide via the STRA planning pathway; registration and fire-safety compliance are mandatory. In capped areas, non-hosted STRA is limited to 180 nights per year (21+ day bookings don’t count). Byron Shire: 60-day cap for most of the LGA.
Night Cap
Hosted STRA: no cap. Non-hosted STRA: 180 nights per registration year in Greater Sydney and certain regional areas; 365 elsewhere. Bookings of 21+ consecutive days are exempt. Byron Shire: 60-day cap (most areas).
STR Register
Register the premises on the NSW STRA Register before advertising or hosting, pay the fee, and display the STRA ID on every listing. Registration renews annually and requires confirming compliance with the Fire Safety Standard and the Code of Conduct.
Risk
Operating unregistered, breaching night caps, or failing fire-safety standards risks platform removal and council/Fair Trading enforcement.

Key Rules at a Glance

Overview of requirements, authorities, and costs for short-term rental compliance
Requirement
What you need
Authority / Link
Cost / Time

Registration / Permit

Register the premises on the NSW STRA Register before advertising or hosting, pay the fee, and display the STRA ID on every listing. Registration renews annually and requires confirming compliance with the Fire Safety Standard and the Code of Conduct.

Max Nights

Hosted STRA: no cap. Non-hosted STRA: 180 nights per registration year in Greater Sydney and certain regional areas; 365 elsewhere. Bookings of 21+ consecutive days are exempt. Byron Shire: 60-day cap (most areas).

Planning / Zoning

Registration is online (usually immediate once paid). If a DA is required, allow standard council timeframes (often 6–12+ weeks depending on council and referrals).

Fee
A$
65
Registration: same day online in most cases. DA (if needed): varies by council; plan several weeks to months.

Safety & Insurance

Comply with the STRA Fire Safety Standard: interconnected smoke alarms (AS 3786) in required locations, heat alarm in any attached private garage, evacuation diagrams at entry and in each bedroom, and in apartments a 2.5 kg ABE extinguisher and fire blanket installed to AS 2444.

Tax

Declare profits to ATO. GST generally doesn’t apply to residential rent (unless operating commercial-residential). No statewide tourist levy at present; NSW STRA register/code is separate from tax.

Step-by-Step: How to comply

Overview of requirements, authorities, and costs for short-term rental compliance
1

If you meet the STRA criteria, use is “exempt development.” If you exceed caps or don’t meet standards, apply to council for development consent (DA) before operating. Registration is online (usually immediate once paid). If a DA is required, allow standard council timeframes (often 6–12+ weeks depending on council and referrals).

2

Apply if required. Planning application (fee ~A$65). $65 initial registration; $25 annual renewal (payable via the NSW Planning Portal).

3

Declare profits to ATO. GST generally doesn’t apply to residential rent (unless operating commercial-residential). No statewide tourist levy at present; NSW STRA register/code is separate from tax.

4

Comply with the STRA Fire Safety Standard: interconnected smoke alarms (AS 3786) in required locations, heat alarm in any attached private garage, evacuation diagrams at entry and in each bedroom, and in apartments a 2.5 kg ABE extinguisher and fire blanket installed to AS 2444.

Your Short-Term Rental Compliance Guide

Overview of requirements, authorities, and costs for short-term rental compliance

Enjoy hassle-free hosting with Houst

  • Income tax: declare all short-stay income to the ATO; apportion expenses.
  • GST: residential rent is input-taxed; GST can apply only if you’re supplying “commercial residential premises”.
  • STRA framework: NSW runs a state STRA Register and standards (planning/safety).
  • Levies: a levy has been discussed publicly, but not enacted at state level.
  • ATO: Renting out your home (income & deductions)

    Edge Cases & Exemptions

    • Byron Shire: 60-day non-hosted cap applies in most areas from 23 Sep 2024 (some precincts exempt).

    • Some regional LGAs have mapped areas where the 180-day cap applies—check the Planning Portal maps.

    • Strata enforcement: non-PPR bans are common; obtain by-law confirmation before listing.

    • Longer bookings (21+ days) avoid the night-cap count but must still stay registered and compliant.

    Penalties & Enforcement

    • Councils monitor the STRA Register and can prosecute unauthorised development (EP&A Act penalties; stop-use orders).

    • Fair Trading can issue warnings, directions, monetary penalties and bar hosts from platforms for Code breaches.

    • Smoke-alarm offences attract fines and urgent rectification.

    Planning breaches can be prosecuted under the EP&A Act (up to $110,000 in the Local Court; higher for serious matters). Smoke-alarm non-compliance attracts on-the-spot penalties (around $550). Fair Trading can impose sanctions for Code breaches.

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    ATO: Rental income you must declare

    State/council based definitions. Example: NSW STRA allows non-hosted entire homes with caps in some areas; other states differ. Check local planning rules.

    Do I need planning permission in New South Wales?
    Is there a night cap or 90-day limit in New South Wales?
    Do I need to register or get a permit?
    What taxes do I need to pay for short-term lets?
    What safety requirements do short-term lets need to meet in New South Wales?

    Tools & Resources

    Planning Guidance
    Local Council (planning/enforcement); NSW Fair Trading (Code/industry); Fire and Rescue NSW (community fire safety).
    Fire Safety Guidance
    NSW STRA — Fire Safety Standard (PDF)
    Tourist/Local Tax Guidance
    ATO: Renting out your home (income & deductions)
    National Safety Guidance
    AFAC: Basic Home Fire Safety (national)
    National Tax Guidance
    ATO: Rental income you must declare
    Regional Safety Guidance
    NSW STRA Fire Safety Standard (PDF)

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    This guide is informational and not legal advice. Always confirm with

    Local Council (planning/enforcement); NSW Fair Trading (Code/industry); Fire and Rescue NSW (community fire safety).

    your local authority.