REGULATORY GUIDE

Stay fully compliant with Sydney's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 2, 2025
Australia
New South Wales
Sydney
REGULATORY GUIDE

Stay fully compliant with Sydney's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 2, 2025
Australia
New South Wales
Sydney

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 lets are legal in Sydney under NSW’s state-wide STRA framework. Non-hosted whole-home lets in Greater Sydney are capped at 180 days per year; hosted STRA (you live on-site) can operate all year. All STRA must be registered on the NSW Planning Portal and meet the STRA Fire Safety Standard (smoke alarms, evacuation diagram, and kitchen extinguisher/fire blanket). Registration costs $65 for the first 12 months, then $25 annually. Declare income to the ATO; GST generally doesn’t apply to ordinary residential rent, but may apply where premises are treated as commercial residential. Owners corporations (strata) can restrict non-hosted STRA in lots that are not a host’s principal place of residence.

Legality
Short lets are allowed under the NSW STRA framework. Use is exempt from development approval if you meet the state standards (registration, safety, caps and other criteria); otherwise a DA may be required.
Night Cap
Greater Sydney: 180 days/year cap for non-hosted STRA. Hosted STRA: up to 365 days/year.
STR Register
Mandatory STRA registration on the NSW Planning Portal (new: $65; annual renewal: $25). Confirm fire-safety compliance during registration.
Risk
Operating non-hosted STRA beyond 180 days or without registration/safety compliance risks council action, Fair Trading sanctions and cancellation of your STRA registration.

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

Mandatory STRA registration on the NSW Planning Portal (new: $65; annual renewal: $25). Confirm fire-safety compliance during registration.

Max Nights

Greater Sydney: 180 days/year cap for non-hosted STRA. Hosted STRA: up to 365 days/year.

Planning / Zoning

Online STRA registration is immediate once requirements are met. If a DA is required, allow several weeks to months depending on assessment and referrals.

Fee
A$
65
Registration: immediate online. Development applications (where required): timeframes vary by category and complexity.

Safety & Insurance

Meet the STRA Fire Safety Standard: install compliant smoke alarms (to AS 3786) on each storey and near bedrooms, provide a 2.5 kg ABE extinguisher and fire blanket in the kitchen, and display an evacuation diagram at the exit; maintain and test equipment.

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

STRA is exempt development statewide when registration, safety standards and day-limit controls are satisfied; otherwise seek council advice about a development application. Online STRA registration is immediate once requirements are met. If a DA is required, allow several weeks to months depending on assessment and referrals.

2

Apply if required. Planning application (fee ~A$65).

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

Meet the STRA Fire Safety Standard: install compliant smoke alarms (to AS 3786) on each storey and near bedrooms, provide a 2.5 kg ABE extinguisher and fire blanket in the kitchen, and display an evacuation diagram at the exit; maintain and test equipment.

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

  • Strata schemes: by-laws can restrict non-hosted STRA for non-PPR lots; check your building rules before listing.
  • Apartment/Building constraints: some buildings/uses are not eligible for exempt STRA and need a DA.
  • Neighbour/amenity complaints: Code of Conduct obligations apply (noise, rubbish, parking). Breaches can lead to warnings, fines and listing on the Exclusion Register.
  • Penalties & Enforcement

  • Planning/safety: non-compliance can trigger orders, penalties and potential court action.
  • Code of Conduct: substantiated breaches can result in warnings, fines and Exclusion Register listings that bar hosting.
  • Planning and fire-safety breaches can attract enforcement notices and court penalties under NSW planning and fire laws; Fair Trading can impose sanctions (including Exclusion Register listings) 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 Sydney?
    Is there a night cap or 90-day limit in Sydney?
    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 Sydney?

    Tools & Resources

    Planning Guidance
    NSW Planning (Department of Planning, Housing & Infrastructure) – STRA; City of Sydney (local compliance).
    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

    NSW Planning (Department of Planning, Housing & Infrastructure) – STRA; City of Sydney (local compliance).

    your local authority.