Airbnb says it is "disappointed" with the NSW government's new legislation which could slash the amount of short-term rentals allowed in the Byron Shire next summer.
In an effort to ease extreme pressure on the local housing market, a 60-day cap on some short-term rentals in Byron will be imposed from September 26, 2024.
The NSW government, which announced the start date this morning, hopes the move will help long-term residents and key workers who have been priced out of the coastal hotspot.
Airbnb Australia and New Zealand head of public policy Michael Crosby said the decision would have "significant repercussions on the local visitor economy, harming jobs and small businesses".
"Byron Bay has a long-standing history of family holiday homes, which have welcomed guests to the local area for decades for weekend getaways, school holidays, and large events like Splendour (In The Grass)," Crosby said.
"Many of these homes are unlikely to ever be offered on the long-term rental market and will likely sit empty for the remainder of the year beyond the 60 nights they are able to be rented.
"Short-term rentals aren't the cause of the housing crisis, but we believe there is more we can do to help make a positive difference like advocating for policies that promote the creation of new housing."
Only being able to list properties with Airbnb, Stayz and other short-term operators for 60 days every year will encourage some landlords to revert to traditional long-term leases, the theory goes.
The 60-day cap was a key recommendation from the state's Independent Planning Commission.
Minister for Planning and Public Spaces Paul Scully said it was "well known" that the Byron Shire had suffered an undersupply of homes, particularly affordable and diverse housing, for many years.
He called short-term rentals in Byron "a complex matter" and described affordability pressures in the area as "particularly acute".
"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," he said.
Byron Shire Council had initially proposed to reduce a cap on non-hosted short-term rentals in parts of its local government area from 180 to 90 days.
But the state government's Independent Planning Commission went further, recommending the cap be tightened to 60 days, to send a stronger market signal to encourage a meaningful shift.
Hosted short-term rentals, where the host resides on the premises during the stay, are unaffected by the new guidelines.
Some precincts in Byron Bay and Brunswick Heads with high tourism appeal were identified by council to operate without a cap – allowing for year-round use.
The 12-month transition period will allow the community and industry to prepare before the new rules take effect ahead of the 2024/25 summer, Scully said.
Byron's cap follows new legislation in Victoria which will tax short-stay accommodation in an attempt to combat the housing crisis.
From 2025, a 7.5 per cent levy on short-stay accommodation revenue will be introduced, with funds raised to fund social and affordable housing.
Other councils suffering from housing issues will be watching developments in Byron closely.
With its stunning coastal scenery, Byron has long been a magnet for domestic and international tourists.
Before the pandemic, more than two million visitors were estimated to flock there every year, spending hundreds of millions of dollars.
