The state government has endorsed a 60-days-a-year cap on short term rentals across parts of Byron Shire following a planning proposal from the northern NSW council.

Planning Minister Paul Scully says following a recommendation from the Independent Planning Commission (IPC), the cap on some short term rental accommodation (STRA) like Stayz and Airbnb will be cut from 180 days from September 2024.

The most popular tourist locations around Byron Shire will be able to operate short stays without a cap, as will properties where the host also lives.

Byron Shire had originally asked for a 90-day cap, but the IPC indicated this wasn’t enough to have an impact, and that a 60 day cap “would send a stronger market signal” to shift STRA over to the long-term rental market.

Addressing the housing crisis

The move is designed to boost the long-term rental market and provide more affordable housing for local residents.

“This decision will support permanent housing in residential and rural areas, helping key workers and long-term residents who are being increasingly priced out of this market,” Mr Scully said.

“It’s well known there has been an undersupply of housing, particularly affordable and diverse housing across the Byron Shire for many years.

In the current housing crisis, it’s important every available means to boost housing stock for the community is utilised, including a shift from non-hosted STRA to long term rentals.

Planning minister Paul Scully

“Given the region’s unique and exceptional circumstances as one of Australia’s most visited tourism destinations, it is crucial housing supply shortages are addressed and more homes are returned for permanent residency, particularly to have workers in the visitor economy.

“In the current housing crisis, it’s important every available means to boost housing stock for the community is utilised, including a shift from non-hosted STRA to long term rentals.”

Non-hosted STRA in NSW is currently restricted to a maximum of 180-days a year in Greater Sydney and self-nominated local government areas including Ballina, Byron, parts of Clarence Valley and parts of Muswellbrook.

Elsewhere non-hosted short term rentals can be let out 365 days a year. Councils are responsible for monitoring STRA compliance.

Housing plan needed

However, the minister said more needs to be done to address the housing crisis in Byron and Council has been directed to come up with others ways of improving supply.

 Its efforts will be monitored by the IPC while the government undertakes a broader review of STRA across the state later this year.

Byron Shire Mayor Michael Lyon welcomed the decision.

“The Planning Minister has acknowledged the shortage of permanent housing supply in the Byron Shire and the impact STRA is having on people’s ability to find stable, long-term accommodation,” he said.

“We now need to take some time to review and digest this information and start planning for the implementation of the changes.”

How to fix the housing crisis is a question being echoed across all levels of government and as a Council we need to be leading this conversation to ensure we deliver the best solutions for our community.

Byron Mayor Michael Lyon

Council has developed a housing options paper that identifies parts of the Shire that are suitable for residential development including present and future land release areas and infill development.

The paper was due to be presented to Council on September 28 ahead of a community consultation period beginning in early October.

“How to fix the housing crisis is a question being echoed across all levels of government and as a Council we need to be leading this conversation to ensure we deliver the best solutions for our community,” Cr Lyon said.

Victoria imposes levy

The NSW decision comes after Victoria’s Housing statement released last week announced a 7.5 per cent levy on short terms stay platforms, with the funds to be reinvested into building social and affordable housing.

There are currently more than 36,000 short stay places in Victoria, with almost half of them in regional areas.