- All short-term rental accommodation providers to
be required to register properties
- New $10,000 incentive for property owners to
transition existing short-term rental accommodation into long-term rental homes
for Western Australians
- Reforms to provide consistency across the sector
and clarity on what is required to operate a short-term rental accommodation property
The Cook Government has today
announced new regulations for un-hosted Short-Term Rental Accommodation (STRA)
in Western Australia, along with an incentive aimed at returning some properties
to the long-term rental market to help increase housing supply.
The reforms, which strike
a balance between better regulation of STRA throughout WA and the rights of
individual property owners, will:
- Establish a State-wide register for all
short-term rental accommodation properties;
- Mandate registration of all STRA properties and
introduce planning requirements for STRA properties in the Perth metropolitan
area, including the need for planning approval for un-hosted STRA properties;
and
- Introduce
a STRA incentive scheme, to be on offer for six months, to encourage property
owners to return their STRA properties to the long-term rental market.
These reforms also
respond to the Parliamentary Inquiry into Short-Stay Accommodation, which
recommended the establishment of a State-wide registration scheme and updates
to planning guidance for STRA properties.
Property owners will be
required to register all STRA properties in WA before being able to advertise
and take bookings, including on online booking platforms.
Registrations are
expected to open mid-2024 and all STRA properties, including those that do not
require planning approval (such as hosted STRA properties), will need to be
registered by 1 January 2025. STRA property owners that are already required to
have development approval must provide their development approval number at
registration, or by 1 January 2026 if subject to the new planning
requirements, to remain on the register.
Planning requirements in
the Perth metropolitan area will be changed, with approval required from the
local government for un-hosted STRA that operate for more than 90 nights.
In regional areas, including the Peel region, local governments will determine
when planning approval is required.
Further guidance will be
provided to local governments on STRA land uses in their planning schemes and
frameworks. The reforms do notpropose any limitations on the number of
nights a hosted or un-hosted STRA property can be rented for.
In the Perth metropolitan
area, un-hosted STRA property owners will be exempt from having to obtain
development approval if the property is not rented for more than 90 nights in a
12-month period. If an un-hosted STRA will be rented more than 90 nights
(inclusive) in a 12-month period, the property owner must seek planning
approval from their local government.
All local governments
will be expected to amend their local planning schemes to implement the policy
changes and be able to issue development approvals by 1 January 2026, if
required.
As
part of the Cook Government's ongoing efforts to boost housing supply and
affordability, a new STRA Incentive Scheme will be in place for six months to
encourage property owners to transition short-stay rentals into long-term
rental properties now.
The scheme offers a
$10,000 payment to property owners willing to switch their STRA properties to
the long-term rental market.
To qualify for the
$10,000 STRA Incentive Scheme payment, you must have already had an entire
property for rent on short-stay booking platforms, such as Airbnb or Stayz, within
the past six weeks. Applicants will be required to provide a minimum 12-month
lease agreement to new, long-term tenants through the Residential Tenancies
Act 1987.
To protect tenants and
ensure the new homes are affordable, a maximum rent chargeable by location
(region) will apply. This includes a maximum rent of $800 per week in Perth
(including Mandurah) and $650 in the South West. The maximum rent
chargeable by location allows room for property owners to charge rents that
reflect the conditions for where their property is located.
There will be a
two-stage payment process that consists of a $4,000 payment once eligible
applications are approved, and a $6,000 payment after the long-term tenancy
rental agreement reaches 12 months. STRA property owners can now submit a
simple Expression
of Interest (EOI) online, with the formal application
process expected to begin by the end of 2023.
Further information,
including frequently asked questions about the STRA Incentive Scheme, including
maximum rent chargeable by location, development planning approval reforms and
the STRA Register, can be found on the STRA Initiatives web page.
Comments attributed to
Premier Roger Cook:
"Short-term rental
accommodation remains an important part of Western Australia's tourism
offering.
"However, it is
impossible to ignore the impact this increasingly popular type of accommodation
has had on some local neighbourhoods and communities.
"My Government has
consulted extensively with industry, stakeholders and the community to develop
these reforms, which will create a more level playing field with traditional
accommodation providers while ensuring regulation is in place to manage impacts
on neighbourhoods and housing supply for local communities.
"We are also doing
everything we can to get more housing and rental properties onto the market
quickly to help meet current demand, and I encourage owners of short-term
rental accommodation to consider the new incentive and other benefits of transitioning
their property to the long-term market."
Comments attributed to Treasurer Rita Saffioti:
"The State Government has
recognised the need to balance regulation in the short-term rental
accommodation sector - as is being done across Australia and overseas.
"There is a need to
ensure that there are sufficient and affordable houses on the long‑term rental
market while recognising STRA plays an important role in the tourism
accommodation sector, which is of critical importance to many regional
communities in WA."
Comments attributed to Commerce Minister
Sue Ellery:
"The
Cook Government is acutely aware of the current housing market across the
country and its impacts on many Western Australians.
"It's acknowledged that there is no single solution to ease the
current tight rental market, which is why our Government continues to drive a
range of reforms to increase housing stock.
"The Short-Term Rental Accommodation Incentive Scheme aims to
bring some short-term rentals back to the long-term rental market.
"The registration and planning changes ensure that a property
can still be used as a short-term rental accommodation provided it is
registered and has obtained all required planning approvals.
"The information gathered by the STRA Register will help State
and local Government to establish a clear picture of the STRA sector in Western
Australian, including how many there are and where they are located."
Comments attributed to Planning Minister
John Carey:
"These reforms are a
balanced approach in providing greater regulation of short-stay accommodation
across the State and provide an incentive for property owners to move their short-stay
properties to the long-term private rental market.
"The planning approval
process provides an opportunity for potential impacts of un-hosted STRA to be assessed
and management measures put in place - providing a much more consistent
planning framework across the Perth metropolitan area.
"Planning approval will only
be required for un-hosted STRA in the metropolitan area, if it is intended to
be let for more than 90 nights (inclusive) in a 12-month period.
"I want to be clear - this is not a cap - rather an exemption from the requirement to obtain development
approval if a STRA property is rented for less than 90 nights over 12 months.
"The new STRA planning
reforms will provide local governments guidance on STRA land uses in their
planning schemes and frameworks.
"Our Government
recognises that regional markets can vary significantly and as such, require a
localised response."
