Complete Guide to Airbnb Rules in Australia 2025: State Regulations, Registration & Compliance Requirements

Airbnb rules in Australia operate through a complex three-tier system where federal tax laws, state frameworks and local council regulations all apply to your rental property. As of January 1, 2025, Australia’s short-term rental landscape has undergone major changes, particularly in Western Australia (WA), which now requires all short-term rental properties to be registered under the new STRA (short-term rental accommodation) Register. New South Wales (NSW) continues to operate its long-standing mandatory STRA registration system and has strengthened enforcement mechanisms. Victoria has introduced a 7.5% Short-Stay Levy and new powers for owners corporations to restrict short-stay activity in apartment buildings.

These changes significantly elevate compliance obligations for Airbnb hosts, especially those operating across multiple states with differing rules. Understanding Airbnb rules in Australia is essential because non-compliance can result in fines, bans and potential legal action from local governments.

What this guide covers:

This comprehensive guide covers 2025 Airbnb regulations across all Australian states, mandatory STRA registration processes, state-specific day limits and caps, short-term rental income tax obligations and practical compliance strategies for both casual hosts and those managing multiple properties.

Who this is for:

This guide is designed for current and prospective Airbnb hosts, property managers and investors considering short-term rentals in Australia. Whether you’re a casual host renting a spare room or an investor managing multiple listings across different states, you’ll find specific compliance requirements and actionable steps.

Why this matters:

The 2025 regulatory changes represent a significant shift in Airbnb rules in Australia compliance requirements. New registration deadlines, enhanced local authority powers and stricter penalty frameworks mean hosts must understand and follow local rules to continue operating legally and protect their Airbnb income.

What you’ll learn:

• State-specific registration requirements and day limits for your rental property

• Step-by-step STRA compliance process and required documentation

• Tax obligations including income tax and capital gains tax for Airbnb hosts

• Insurance requirements and safety standards for short-term rental accommodation

Understanding Australia’s Short-Term Rental Regulatory Framework

Short-term rental accommodation (STRA) refers to any property rented for periods typically under 30 days through platforms like Airbnb, including whole houses, spare rooms and bed and breakfast accommodation. Unlike traditional long-term rentals, STRA operates under specialized regulations designed to balance tourism benefits with housing affordability and community concerns.

Australia implements a three-tier regulatory system where Airbnb hosts must comply with federal tax laws, state-specific registration frameworks and local council planning requirements simultaneously. This decentralized approach means Airbnb rules vary significantly between locations, creating compliance challenges for property owners operating across multiple jurisdictions.

Federal vs state vs local regulations

Federal requirements apply to all Airbnb hosts regardless of location, covering tax obligations through the tax office, consumer protection under Australian consumer law and privacy obligations for guest personal information handling.

State frameworks: Each state handles STRA differently. Only NSW and WA operate state-wide STRA registers. Victoria does not run a universal STRA planning register; instead, it administers the 7.5% Short-Stay Levy through the State Revenue Office and relies on council-level planning controls. Other states and territories primarily regulate STRA through local council planning rules, zoning controls, permits and emerging levy frameworks.

Local council rules control planning approvals, zoning restrictions and area-specific caps. Local governments can impose additional requirements beyond state regulations, including development approval for properties exceeding day limits and specific building rules for strata schemes.

This three-tier system means hosts must research requirements at all levels. For example, a property owner in Sydney must comply with federal tax regulations, NSW’s 180-day limit and STRA registration, plus any additional restrictions from their local authority.

The 2025 regulatory changes

The most notable national shift in 2025 is Western Australia’s introduction of mandatory STRA registration, effective January 1, 2025. All unhosted and hosted short-term rentals in WA must now obtain a registration number before advertising or accepting bookings.

In Victoria, major reforms commencing January 1, 2025 include:

• A 7.5% Short-Stay Levy applied to short-term rental bookings (except most principal place of residence rentals).

• New powers for owners corporations to prohibit short-stay accommodation in apartment buildings through special resolutions. Principal place of residence (PPR) hosts are exempt from these bans.

New South Wales did not introduce new 2025 registration rules — its mandatory STRA Register and 180-day cap for unhosted rentals in Greater Sydney were already in place. However, enforcement, council integration and strata provisions continue to tighten.

Understanding this regulatory framework is essential before examining specific state requirements that determine your compliance obligations.

State-Specific Airbnb Regulations

Each state has developed distinct approaches to regulating short-term rental accommodation, creating a patchwork of rules that Airbnb hosts must navigate based on their property locations.

New South Wales rules

New South Wales operates one of Australia’s most established and comprehensive STRA systems. Mandatory registration, the 180-day annual cap for unhosted rentals in Greater Sydney and nominated LGAs and the Code of Conduct were already in effect prior to 2025. Hosts must continue to comply with these rules, and local councils have been granted broader enforcement powers to manage nuisance, planning breaches and unauthorised short-term rental activity.

The 180-day cap applies specifically to properties where hosts don’t reside during guest stays. Importantly, consecutive stays of 21 days or more don’t count toward this limit, creating opportunities for hosts to exceed the cap through longer bookings that function as medium-term accommodation.

Byron Shire operates under stricter 60-day annual caps for unhosted rentals, demonstrating how local rules can impose additional restrictions beyond state frameworks. Property owners must check both state and local council requirements to ensure full compliance.

NSW’s Code of Conduct establishes mandatory house rules covering guest behavior, parking, waste disposal and noise restrictions. Violations can result in placement on the Exclusion Register, permanently banning hosts from operating short-term rental accommodation.

Victoria regulations

Victoria introduced significant reforms effective January 1, 2025. The most impactful change is the 7.5% Short-Stay Levy, applied to most short-term rental bookings of less than 28 days. The levy is paid to the State Revenue Office by hosts or booking platforms, depending on the arrangement.

Owners corporations (strata bodies) also now have expanded powers to ban short-stay accommodation within their buildings via a special resolution (75% majority). These bans cannot apply to principal place of residence (PPR) hosts, meaning owner-occupiers may continue to short-stay their home or spare rooms even if the building adopts a ban.

Victoria does not impose a statewide day limit. Instead, councils such as the Mornington Peninsula Shire may require planning permits depending on zoning, dwelling type and intended use.

Victoria’s approach emphasizes principal place of residence requirements, meaning property owners must demonstrate genuine residential use rather than purely investment-focused operations. This affects tax deductions and insurance requirements for rental properties.

Western Australia framework

Western Australia introduced a new mandatory STRA registration system effective January 1, 2025. All short-term rental properties — hosted or unhosted — must obtain a registration number to operate legally.

In the Perth metropolitan area, unhosted properties may operate for up to 90 nights annually without development approval. To exceed the 90-night threshold, property owners must seek development approval from their local council.

WA has also introduced a $10,000 incentive program for eligible property owners who permanently convert short-stay accommodation into long-term rentals. A separate $5,000 incentive exists for returning long-vacant properties to the long-term rental market, but this is not specific to STRA conversions.

Other states and territories

Queensland, Tasmania, South Australia, ACT and Northern Territory primarily rely on local council regulations rather than statewide frameworks. Property owners in these jurisdictions must research specific area requirements through their local authority websites and planning departments.

Queensland councils increasingly implement their own registration systems and day limits, particularly in tourist areas like the Gold Coast and Sunshine Coast. Tasmania focuses on planning permit requirements for properties in residential zones.

Key points:

• NSW: 180-day limit, mandatory registration, Code of Conduct compliance

• Victoria: Owners corporation ban powers, principal residence requirements

• WA: 90-day limit in Perth, development approval pathway for extensions

• Other states: Local council-specific regulations and requirements

Understanding state-specific rules provides the foundation for navigating registration and compliance processes.

Registration and Compliance Requirements

The 2025 regulatory changes established mandatory registration as the primary compliance mechanism for Airbnb hosts across Australia’s major markets, replacing previous voluntary systems with enforceable requirements.

Step-by-Step: STRA registration process

When to register: Complete registration before listing your property or by January 1, 2025 deadline, whichever comes first.

1. Check eligibility requirements: Verify your property meets planning approval requirements through your local council website and confirm compliance with any strata by laws or building rules that may restrict short-term rental accommodation.

2. Gather required documentation: Collect property ownership documents, insurance policy details showing appropriate coverage for short-term rentals, safety certificate confirmations and evidence of principal residence status if applicable to your state’s requirements.

3. Submit application through state portal: Access your state’s STRA registration website, complete all required fields with complete and accurate information and upload supporting documentation as specified by platform requirements.

4. Pay registration fees: Submit required fees ranging from $50-$200 annually depending on jurisdiction and property type, with additional charges for properties requiring development approval or planning permits.

5. Display registration number: Add your STRA registration number to your Airbnb listing title and description, ensuring compliance with platform requirements and local authority identification procedures.

Council approvals: When required vs registration only

Properties requiring development approval include those seeking to exceed day limits (180 days in NSW, 90 days in Perth), operate in restricted zoning areas or function as bed and breakfast accommodation with commercial services.

Registration-only properties typically include principal residences used for casual hosting, properties staying within day limits and spare room rentals where hosts remain on-site during guest stays.

The distinction affects both compliance costs and operational flexibility. Development approval processes can take 2-3 months and cost $500-$2,000, while registration typically processes within 2-4 weeks at lower fees.

Comparison: State registration requirements

Registration requirements directly affect Airbnb hosts’ ability to earn income legally and maintain their listings on electronic distribution platforms. Non-compliance can result in platform removal and significant financial penalties.

Penalties

Penalties vary by state.

• In Western Australia, operating an unregistered STRA property can attract fines of up to $20,000.

• Breaches of NSW short-term rental regulations carries fines of up to $1,100 for failing to register a short-term rental property, up to #5,500 for failing to comply with the code of conduct and fines of up to $11,000 for breaching strata by-laws. In addition, owners and property managers could lose their licence and be excluded from listing on online booking platforms and

• In Victoria, failure to comply with the 7.5% Short-Stay Levy can result in significant penalty tax or interest charges.

Because penalties differ widely across councils and states, hosts should verify applicable fine structures for their specific location.

Tax, Insurance and Safety Compliance

Operating short-term rental accommodation creates specific tax obligations, insurance requirements and safety standards that extend beyond basic property ownership responsibilities.

Tax obligations for Australian hosts

All rental income from Airbnb platform listings constitutes taxable income that must be declared in your annual tax return regardless of the amounts involved. The tax office requires detailed record-keeping of all earnings from the sharing economy, including service fees, cleaning charges and any additional income from guest services.

Property owners can claim tax deductions for expenses directly related to their Airbnb platform business, including utilities, maintenance, insurance and registration fees, that are proportionate to rental use. For properties used partially for personal residence, deductions must be apportioned based on actual rental use periods.

Capital gains tax implications apply when selling rental properties that have been used for short-term rental accommodation. The tax treatment depends on whether the property served as your principal residence and the proportion of time used for rental purposes versus personal use.

Electronic distribution platform operators like Airbnb, Vrbo and Booking.com are required to report short-stay transactions to the Australian Tax Office (ATO), so making accurate income reporting essential. Property owners should seek professional tax advice to ensure compliance with tax laws and optimize their tax position.

Tax and reporting rules are federal and do not change with state registration.

ACT Short-Stay Levy

The Australian Capital Territory (ACT) introduced a 5% Short-Term Rental Accommodation Levy on bookings of 28 days or less that went into effect on 1 July 2025. The levy is applied to the total amount paid by the guest, including accommodation, cleaning fees and platform fees.

The levy is not paid by hosts directly. Instead, booking platforms such as Airbnb and Stayz must register with the ACT Revenue Office, collect the levy, lodge quarterly returns and remit payments. Direct bookings made without a booking platform are not subject to the levy.

Certain accommodation types are excluded, including hotels, motels, hostels, caravan parks, student accommodation, crisis accommodation and hosted stays where the owner lives on-site during the guest’s stay.

Insurance and safety standards

Standard home insurance policies typically exclude coverage for commercial short-term rental activities, requiring specialized insurance for rental properties. Airbnb short-term rental hosts need policies covering public liability for personal or bodily injury to guests, contents damage during rental periods and loss of rental income due to property damage.

Safety requirements vary by state but generally include working smoke alarms, emergency instructions displayed prominently and clear house rules regarding property access and emergency procedures. Some states require annual safety inspections for properties exceeding certain occupancy levels or operating as bed and breakfast accommodation.

Property owners must also ensure compliance with any strata scheme building rules that may impose additional safety requirements, guest registration obligations or restrictions on short-term rental operations within the development.

Common Compliance Challenges and Solutions

New Airbnb regulations create several compliance challenges that hosts frequently encounter when navigating the complex regulatory environment across Australia.

Challenge 1: Tracking day limits across multiple platforms

Solution:

Implement comprehensive booking tracking systems such as Hostaway that monitor combined nights from OTAs, direct bookings and other platforms to ensure compliance with state day limits.

Property management software can automatically calculate remaining allowable nights and prevent over-booking. Even for casual hosts managing single properties, manual spreadsheets tracking booking dates and platform sources may not provide adequate oversight.

Challenge 2: Understanding council vs state requirements

Solution:

Research both state registration portals and local council websites to identify all applicable requirements, as local rules often impose additional restrictions beyond state frameworks.

Contact your local authority planning department directly to clarify area-specific regulations, zoning restrictions and any development approval requirements that may apply to your specific circumstances.

Challenge 3: Strata and building restrictions

Solution:

Review your strata bylaws thoroughly before commencing short-term rental activities and consider attending owners corporation meetings to understand community sentiment regarding new regulations.

Obtain written consent from your strata committee where required and understand enforcement procedures for community rules violations. Consider the impact of potential future bans when making property investment decisions.

Challenge 4: Insurance coverage gaps

Solution:

Contact your current insurance provider to confirm whether your existing policy covers short-term rental accommodation activities or requires additional coverage for rental properties.

Compare specialist short-term rental insurance policies that provide comprehensive coverage for Airbnb hosts, including public liability, contents protection and loss of rental income coverage.

Understanding these solutions provides the foundation for maintaining long-term compliance and operational success.

Conclusion and Next Steps

Successful Airbnb hosting in 2025 requires understanding and complying with multi-level regulations spanning federal tax obligations, state registration requirements and local council rules that vary significantly across Australian jurisdictions.

The mandatory registration deadlines and enhanced enforcement mechanisms introduced in 2025 represent a fundamental shift toward stricter oversight of short-term rental accommodation, making compliance essential for protecting your ability to earn income and avoid significant penalties.

To get started:

1. Check your state’s STRA registration portal immediately and identify registration deadlines, required documentation and fee structures for your specific property type and location.

2. Research local council requirements for your property’s specific location, including planning approvals, zoning restrictions and any additional compliance obligations beyond state registration.

3. Confirm insurance coverage and safety compliance by reviewing your current insurance policy for short-term rental exclusions and ensuring all required safety equipment and emergency instructions are properly installed and maintained.

Property owners should also understand mortgage restrictions that may apply to rental properties, guest etiquette expectations for responsible hosting and guest communication strategies that support positive community relations while operating within Airbnb rules.

Additional Resources

• State STRA registration portals: NSW Planning Portal, Victoria Planning, WA DMIRS registration system

• Tax resources: ATO Sharing Economy guidance, professional accounting services specializing in rental property taxation

• Host Communities: Local Facebook groups and online forums for sharing compliance updates and regional hosting advice

FAQs

Do I need to register my Airbnb property in Australia?

Yes, mandatory registration is required in New South Wales and Western Australia. In other states like Queensland, registration may be required at the local council level. Hosts must display their registration number on their listings to operate legally in these areas.

Are there limits on how many days I can rent out my property?

Yes, day limits vary by state and council. In Greater Sydney (NSW), there is a 180-day cap per year for unhosted properties. In the Perth metropolitan area (WA), unhosted properties are limited to 90 nights annually without special council approval. Victoria does not have a statewide day limit, but local councils may impose their own restrictions.

What are the penalties for not complying with the new Airbnb regulations?

Penalties for non-compliance are severe and vary by state. For instance, operating an unregistered property in Western Australia can lead to fines up to $20,000. In NSW, fines can reach $1,100 for failing to register and up to $11,000 for breaching strata by-laws.

Do I need special insurance to host an Airbnb?

Standard home and contents insurance policies usually do not cover commercial short-term rental activities. Hosts need to obtain specialized insurance that provides public liability coverage for guest injuries, as well as protection for contents damage and loss of rental income.

Is my Airbnb income taxable in Australia?

Yes, all income earned from your Airbnb listing is considered taxable income and must be declared on your annual tax return to the Australian Tax Office (ATO). You can claim deductions for expenses directly related to the rental, such as maintenance, insurance and registration fees, proportionate to its rental use.