Airbnb, Stayz hosts face ‘nuisance tax’ under NSW government plan

A NEW “nuisance tax” could be introduced where reckless Airbnb hosts would be forced to pay compensation to neighbours if they allow nightmare guests to stay in their homes or apartments.

• Airbnb is now a multi-billion dollar business in Australia
• Strata body takes Airbnb battle to the top

AIRBNB hosts could be slapped with a “nuisance tax” and apartment owners forced to pour extra money into strata funds under a plan before the state government.

Hosts would also face paying compensation to neighbours for letting to problem guests, and may also have to be registered.

The state government is also considering limiting the number of days that a property can be let out without needing a development application.

Leonie Hull at her home in Bondi, which she rents out via Airbnb. Picture: Justin Lloyd.

The proposals are among several outlined in an options paper which will be released today for public consultation.

Suggested solutions for how to manage the private short-term rental market, including Airbnb and Stayz, range from self-regulation to changes to strata and planning rules.

One suggested strata rule change would allow owners’ corporations to ask the NSW Civil and Administrative Tribunal to order owners who short-term let to “pay increased contributions to the administrative or capital works funds”.

The Tribunal would also be able to order owners to pay compensation when guest behaviour affects others in the building, or issue a temporary ban on short-term letting.

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While it is unclear whether the government would adopt these particular changes, it has indicated a willingness to tackle the issue of party houses.

The paper includes the option of a registry or licensing scheme for all host properties.

The options paper will be open to the public for three months while the government decides what to do with the industry estimated to be worth $31 billion nationally.

Hosts would also face paying compensation to neighbours for letting to problem guests, and may also have to be registered. Picture: AFP

After the release of the options paper, Airbnb’s Brent Thomas took aim at some of the proposals in the report.

“While some of the options are fair and sensible, others would hurt not only our host community, but also millions of travellers and the small businesses who depend on Airbnb,” he said.

“These heavy-handed options would unfairly punish everyday people who rely on Airbnb, rob people of their right to share their homes in a respectful way, cost local jobs, and make it more expensive for people and families to travel.

“Ultimately, Airbnb, our host community and the countless people in NSW who support our platform want to see the NSW Government put in place rules that get the balance right. Rules that protect the rights of people who want to share their home if they wish, while preserving the safety and amenity of our community.”

Airbnb say some of the report’s proposals will hurt their host community Picture: Justin Lloyd.

Planning Minister Anthony Roberts said it was a complex issue: “We believe by engaging with those most affected we can achieve the right balance of what level of regulation is required to best meet the needs of the community.”

Airbnb’s Brent Thomas said the company injected “half a billion dollars” into the state’s economy and created more than 4400 jobs. “The current rules for home sharing in NSW are confusing, complex and were written before the internet existed,” he said.

Short-term holiday rental platform, Stayz, said the government was likely to hurt people in regional NSW.

“The NSW Government must not forget that short-term rental accommodation injected $2.1 billion into the economy last year, much of it in regional NSW,” director of government affairs Jordan Condo said.

“Unfortunately, these options do not properly consider the damage to regional tourism and jobs. Holiday homes are the lifeblood of many regional towns and cities, but the Government has ignored regional constituents in their response.

“Stayz strongly believes that regulatory efforts designed to manage city problems should not damage regional economies, where tourism is a key driver of local jobs and economic uplift.”

Mr Condo said what was on display was not “evidence-based policy making”.

“Specifically, the Options Paper does not distinguish between someone renting out a beach or bush holiday home from someone renting out a room in an already leased property in a city strata apartment,” he said.

“These are significant differences that the Government had advised us it was cognisant of. If this distinction is not recognised it will have damaging consequences for the economy and jobs in regional towns like Port Macquarie and Kiama.”

Originally published as Airbnb, Stayz hosts face ‘nuisance tax’ under NSW government plan