The Short-Term Rental Accommodation (STRA) Register, established under the Short-Term Rental Accommodation Act 2024, tracks STRA activities in Western Australia. Key details, including registration steps and contact information, are available on the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) website.

Registration Requirements:

• All STRA properties must register by 1 January 2025, regardless of whether they require planning (development) approval.
• Registration enables property bookings and may require proof of planning approval as part of the process.
• STRA owners must comply with local planning laws, which may involve obtaining development approval. Updated local planning schemes will facilitate approvals by 1 January 2026.

Planning Regulations Updates:

• New planning rules provide clarity on when STRA proposals need approval, standardize definitions, and differentiate STRA from traditional accommodations like hotels.
• There are no restrictions on the number of nights a property can be rented, provided it is registered and meets all approval requirements.

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In Australia, short-term rental income is subject to national tax regulations, specifically under the framework of the Australian Taxation Office (ATO). Here are the key aspects of how national tax affects short-term rentals:

Income earned from short-term rentals must be declared as assessable income on your annual tax return. . Property owners can claim deductions for expenses directly related to earning rental income. These can include mortgage interest, property management fees, insurance, utilities, maintenance, and depreciation of assets.

Goods and Services Tax (GST): This is similar to VAT and is set at 10%. If a property owner’s annual turnover exceeds AUD 75,000, they must register for GST.

Income Tax: Income earned from short-term rentals must be declared on the property owner’s annual tax return. This income is subject to standard income tax rates. This applies to all income received from renting out properties on platforms like Airbnb or Stayz.

Tourist Tax: There is no national tourist tax in Australia, but some local councils may impose additional levies or charges.

Capital Gains Tax (CGT): If you rent out part of your primary residence as a short-term rental, you may still be eligible for a partial main residence exemption from CGT when you sell the property. However, the portion of the property used to produce income will be subject to CGT. For properties held as investments and rented out on a short-term basis, any capital gain realized upon sale will be subject to CGT. The cost base for CGT calculations can include purchase price, improvement costs, and certain holding costs.

Property owners must keep detailed records of all income received and expenses incurred related to short-term rentals. This includes invoices, receipts, and statements from rental platforms. Records should be kept for at least five years from the date the tax return is lodged.

If a property is used both for personal use and as a short-term rental, expenses need to be apportioned between private and income-producing use.

Yes, there are various permits, licenses, and registration requirements for short-term rentals in Australia, which can vary significantly depending on the state, territory, and local council. Here is an overview of some common requirements across different regions:

New South Wales, hosts must register their short-term rental accommodation properties on the government’s Short-Term Rental Accommodation (STRA) Register. Properties must meet certain fire safety standards, including having smoke alarms, fire extinguishers, and clear evacuation diagrams.

Hosts and guests must comply with a mandatory Code of Conduct that sets out rights and obligations.

Depending on the location, hosts may need to obtain approval from the local council, especially if the property is located in a strata scheme.

In Victoria: Owners Corporation Amendment (Short-stay Accommodation) Act 2018 law allows owners' corporations to manage short-stay accommodation in apartment buildings and take action against disruptive guests. Hosts may need to adhere to specific local council regulations, which can include registration, planning permits, or other approvals.

In Queensland, Western Australia, Northern Territory and South Australia: Regulation is primarily managed at the local council level, and requirements can vary widely. Hosts may need planning permits or development approvals depending on the council. Compliance with fire safety standards and building codes is essential. Some local councils require properties to be registered as short-term rental accommodations. While in some tourist-heavy areas, additional licensing or registration may be required.

Tasmania: Hosts need planning permits from their local council if they rent out their property for more than 42 nights per year. Properties must comply with fire safety standards, including smoke alarms and evacuation plans.

Australian Capital Territory: Hosts are required to register their short-term rental properties with the ACT Government.Depending on the property type and location, planning approval may be required.

Local councils have the authority to impose specific requirements, so it’s essential to check with the local council where the property is located. To ensure compliance with necessary registrations or licenses, fire safety standards and building codes and adequate insurance coverage. Ensure that any are obtained to legally operate a short-term rental.

Yes, there is a national association for short-term rental (STR) owners in Australia. The main organization representing the interests of STR owners and operators is the Australian Short Term Rental Association (ASTRA).

Australian Short Term Rental Association (ASTRA)

ASTRA is a national industry body that advocates for the interests of short-term rental property owners, managers, and hosts across Australia. It provides resources, support, and representation to ensure the sustainability and growth of the short-term rental sector.

Key Functions of ASTRA:

1. Advocacy: ASTRA represents the interests of STR owners and operators in discussions with government bodies, policymakers, and regulatory authorities.
2. Education and Resources: The association offers educational resources, best practices, and guidelines to help STR owners manage their properties effectively and comply with regulations.
3. Industry Standards: ASTRA promotes high industry standards and ethical practices among its members.
4. Networking: Provides opportunities for networking and collaboration among STR owners, property managers, and industry stakeholders.
5. Research and Data: Conducts research and provides data on the short-term rental market to support informed decision-making and policy development.
6. Support and Guidance: Offers support and guidance on regulatory changes, legal issues, and operational challenges faced by STR owners.

Membership Benefits:

• Access to industry news and updates.

• Educational webinars and training sessions.

• Networking events and industry conferences.

• Resources on regulatory compliance and best practices.

• Advocacy and representation on issues affecting the STR sector.

How to Join ASTRA:

To become a member of ASTRA, STR owners and operators can visit the ASTRA website and sign up for membership. Membership options may vary, and the website provides details on the benefits and costs associated with joining.

Contact Information:

• Website: Australian Short Term Rental Association (ASTRA)

• Email: Available on the ASTRA website's contact page for specific inquiries.

• Social Media: ASTRA is active on various social media platforms, providing updates and engaging with the STR community.

By joining ASTRA, STR owners in Australia can stay informed about industry developments, gain access to valuable resources, and have a collective voice in advocating for favorable regulations and policies.

Subletting is generally legal in Australia, but it is subject to various conditions and regulations that vary by state and territory. Here are some key points to consider regarding subletting in Australia:

The primary lease agreement often specifies whether subletting is permitted. Tenants should review their lease agreements carefully, as some leases explicitly prohibit subletting or require landlord approval. In most states and territories, tenants must obtain written permission from their landlord before subletting the property. Landlords cannot unreasonably withhold consent, but they are entitled to know who will be living in their property and under what terms.

When subletting, the original tenant (head-tenant) remains responsible for the lease. This includes ensuring rent is paid and the property is maintained. The sub-tenant has rights and responsibilities similar to those of the original tenant, but the head-tenant acts as the landlord to the sub-tenant.

Subletting without permission can lead to eviction and financial penalties. It is crucial to follow legal processes and get the necessary approvals to avoid such consequences.

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In Australia, non-resident property owners are subject to the same general laws and regulations as resident property owners when it comes to short-term rentals. However, there are additional considerations and specific regulations that non-residents should be aware of:

Foreign Investment Review Board (FIRB): Non-residents must obtain approval from the FIRB before purchasing residential real estate in Australia. This approval is necessary for any property purchase, including those intended for short-term rentals. FIRB approval may come with conditions, such as the requirement to build on vacant land within a certain period or the stipulation that the property is not left vacant.

Taxation: Income earned from short-term rentals must be reported to the Australian Taxation Office (ATO). Non-resident property owners are subject to Australian income tax on rental income. They must obtain a Tax File Number (TFN) and lodge annual tax returns.

Withholding Tax: There may be withholding tax obligations on rental income paid to non-residents. This tax is usually withheld by the property manager or agent managing the rental property.

They must report any capital gains to the ATO. Non-resident property owners must comply with state and local government regulations regarding short-term rentals. These can include registration requirements, safety standards, zoning laws, and occupancy limits. Each state and territory has its own set of rules, which can vary significantly.

Non-residents often hire local property managers to handle day-to-day operations, compliance, and tenant interactions.

Adequate insurance coverage is essential to protect against potential liabilities associated with short-term rentals.

Non-residents should seek legal and tax advice to ensure compliance with Australian laws and to optimize their investment.

Non-residents may face restrictions or additional requirements when obtaining finance for property purchases in Australia.

Fluctuations in currency exchange rates can impact the financial returns on rental income and property sales.

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