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NSW mayors call on Airbnb cap expansion to ease housing crisis across state

Mayors of NSW’s coastal towns have called on Premier Chris Minns to expand a newly announced Airbnb cap in Byron Bay to their own councils to ease the state’s housing crisis.

Byron Bay will become the first area in NSW to roll out a 60-day short-term rental cap. Picture: Getty Images
Byron Bay will become the first area in NSW to roll out a 60-day short-term rental cap. Picture: Getty Images

Mayors of NSW’s coastal towns have called on Premier Chris Minns to expand a newly announced Airbnb cap in Byron Bay to their own councils to ease the state’s housing crisis.

On Tuesday, Planning Minister Paul Scully revealed short-term rentals would be limited to operating for 60 days a year, in a move to free up supply in the tourist-heavy town.

The caps would apply across the majority of the Byron Shire, although some precincts with “high-tourism appeal”, like beachfronts, could operate without restrictions.

Hosted stays – where the homeowner lives on the property – are unaffected by the cap, which will not come into effect until September 2024 and is planned to be rolled out only in Byron.

It comes after a recommendation from the Independent Planning Commission, which was asked to assess Byron’s housing market.

“There has been an under-supply of housing, particularly affordable and diverse housing, across Byron for many years,” Mr Scully said.

NSW Planning Minister Paul Scully. Picture: Bianca DeMarchi
NSW Planning Minister Paul Scully. Picture: Bianca DeMarchi

The shire saw more than a 100 per cent increase on homelessness this year and has about 2300 short-term rentals.

The move was welcomed in Byron. Long-term “cap campaigner” Liz Friend said the decision was “heartening” and a “pleasant shock … We didn’t know if a 60 or 90-day cap would be introduced, so it’s really positive and goes a step further”.

Long-term cap campaigner Liz Friend in Byron Bay.
Long-term cap campaigner Liz Friend in Byron Bay.
Ballina MP Tamara Smith. Picture: Suze McLeod
Ballina MP Tamara Smith. Picture: Suze McLeod

Ballina NSW MP Tamara Smith said the precinct model was “better than we’d hoped for”.

“It’s great for the community who have been suffering housing stress, particularly businesses whose staff couldn’t find places to live,” she said.

Concurrently, the Tweed and Shoalhaven mayors urged the government to introduce the same cap in their councils.

“Given the intense housing crises we’re facing, anything that delivers housing back into the market is a good thing,” Tweed mayor Chris Cherry said.

Tweed Shire Council Mayor Chris Cherry. Picture: Matthew Roberts
Tweed Shire Council Mayor Chris Cherry. Picture: Matthew Roberts
Shoalhaven mayor Amanda Findley.
Shoalhaven mayor Amanda Findley.

About 1000km south in Shoalhaven, mayor Amanda Findley said they’d called on the government for similar caps previously and would continue to do so.

“The target should be a nuanced approach where the cap is on properties that should be back on the open market,” she said.

Ballina mayor Sharon Cadwallader. Picture: Liana Boss
Ballina mayor Sharon Cadwallader. Picture: Liana Boss

Other tourist-heavy spots were less keen on a one-size-fits-all approach.

“We support Byron’s cap … but the accommodation sector is very important to us,” Ballina mayor Sharon Calderwater said.

“We’d be hesitant (for a cap) that could deter tourism, and the money and jobs it creates.”

Airbnb Australia public policy head Michael Crosby said the company was “disappointed”.

Alexi Demetriadi
Alexi DemetriadiNSW Political Correspondent

Alexi Demetriadi is The Australian's NSW Political Correspondent, covering state and federal politics, with a focus on social cohesion, anti-Semitism, extremism, and communities.

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Original URL: https://www.theaustralian.com.au/nation/politics/nsw-mayors-call-on-airbnb-cap-expansion-to-ease-housing-crisis-across-state/news-story/13bb228c12085aa41e35632456a80b35