The government says it will “consider the right balance between improving housing affordability and supporting tourism”,especially in holiday hotspots such as Byron Bay,the South Coast and the Snowy Mountains,which have a high number of short-term rentals.
However,it is also considering policy options,including revenue measures,to encourage investors to make homes available for long-term rental accommodation. A levy is one option being considered.
While the discussion paper does not specify the scale of a levy,theVictorian government last year announced a 7.5 per cent tax on short-stay rentals,the first in Australia,as part of a push to build 800,000 new homes over the next decade. Victoria’s levy is expected to raise $70 million each year.
The discussion paper cites other jurisdictions around the world that impose charges on short-term rentals,including Germany,France,the US and Canada. Booking platforms,such as Airbnb,collect the levies on behalf of the government.
As of January,there were about 52,300 homes registered for short-term rental accommodation across NSW,while at the same time the cost of private rentals across the state has soared and vacancy rates remain near historic low levels,the paper says.
Since the end of 2019,advertised prices for long-term rentals in NSW have increased more than 38 per cent and last year alone rose 14 per cent.
Meanwhile,the vacancy rate in Greater Sydney was 1.7 per cent in December,below a 10-year average of 2.3 per cent,according to the discussion paper.