Byron proposals cutting non-hosted short-term rental days can't go below 60 days.
Applies to: Byron Shire Council onlyThis applies when Byron Shire Council prepares a planning proposal to reduce the number of days non-hosted short-term rental accommodation may operate in parts of its area. The proposal must not reduce the period below 60 days, must clearly explain the reasons for the change, and must analyse the social and economic impacts on the community and affected property owners.
This direction is a specific rule that only Byron Shire Council must follow when it uses the planning system to cut back on how many days a year a home can be rented out as "non-hosted" short-term rental accommodation (STRA) — that is, holiday letting where the owner or tenant is not living on the premises during the stay. Byron has faced significant pressure from holiday letting on its housing market and neighbourhood amenity, and this direction sets guardrails on how far the council can go when it prepares a planning proposal to reduce those letting days.
Mechanically, the direction imposes a floor and a process. The floor is that non-hosted STRA cannot be reduced below 60 days per year — the council cannot ban or cut it more severely than that through a planning proposal. The process requires the council to spell out clearly why it is changing the day cap, and to analyse and explain the social and economic impacts of the reduction, both on the community generally and on affected property owners specifically. If a planning proposal is inconsistent with these principles, the council must justify that to the Minister, and it can only proceed if the inconsistency is of minor significance.
Byron Shire Council only, when acting as the relevant planning authority preparing a planning proposal to identify or reduce the number of days non-hosted short-term rental accommodation may be carried out in parts of its LGA.
It is triggered when Byron Shire Council prepares a planning proposal to identify or reduce the number of days that non-hosted short-term rental accommodation may be carried out in parts of its local government area.
A planning proposal may be inconsistent with the direction only if the council can satisfy the Minister that the inconsistent provisions are of minor significance.
The notes reference section 137A of the Strata Schemes Management Act 2015 (by-laws prohibiting STRA use of a lot that is not a principal residence), section 54A of the Fair Trading Act 1987 (meaning of short-term rental accommodation arrangement), and the Residential Tenancies Act 2010 (meaning of tenant). The residential accommodation types listed draw on standard planning definitions.
Non-hosted short-term rental accommodation periods must not be reduced to be less than 60 days.
The reasons for changing the non-hosted short-term rental accommodation period should be clearly articulated in the planning proposal.
The impact of reducing the period should be analysed and explained, including social and economic impacts for the community in general and for impacted property owners specifically.
This direction does not apply to Kiama. By its own terms it applies to Byron Shire Council only. Kiama, although it is a coastal LGA with holiday-letting and housing-pressure issues of its own, is not named and so cannot rely on or be bound by this specific 60-day floor or its process requirements. Kiama would instead be subject to the general state-wide STRA framework rather than this Byron-specific direction.
7.2 Reduction in non-hosted short-term rental accommodation period Objective The objectives of this direction are to: (a) mitigate significant impacts of short-term rental accommodation where non-hosted short-term rental accommodation period are to be reduced, and (b) ensure the impacts of short-term rental accommodation and views of the community are considered. Application This direction applies to Byron Shire Council when the council prepares a planning proposal to identify or reduce the number of days that non-hosted short-term rental accommodation may be carried out in parts of its local government area. Direction 7.2 (1) The council must include provisions which give effect to the following principles in a planning proposal to which this direction applies: (a) non-hosted short term rental accommodation periods must not be reduced to be less than 60 days (b) the reasons for changing the non-hosted short-term rental accommodation period should be clearly articulated (c) the impact of reducing the non-hosted short-term rental accommodation period should be analysed and explained, including social and economic impacts for the community in gen eral, and impacted property owners specifically. Consistency A planning proposal may be inconsistent with the terms of this direction only if the relevant planning authority can satisfy the Minister that the provisions of the planning proposal that are inc onsistent are of minor significance. Note: In this direction: short-term rental accommodation means an existing dwelling: (a) in which accommodation is lawfully provided on a commercial basis by the owner or tenant of the dwelling (the host) for a temporary or short-term period, with or without the host residing on the premises during that period, and (b) that, if it were used predominantly as a place of residence, would be one of the following types of residential accommodation: i. an attached dwelling, ii. a dual occupancy, iii. a dwelling house, iv. multi dwelling housing, v. a residential flat building, vi. a rural workers’ dwelling, vii. a secondary dwelling, viii. a semi-detached dwelling, ix. shop top housing. Note: Section 137A of the Strata Schemes Management Act 2015 provides that a by-law made by a special resolution of an owners corporation may prohibit a lot being used for the purposes of a short-term rental accommodation arrangement (within the meaning of section 54A of the Fair Trading Act 1987) if the lot is not the principal place of residence of the person who, pursuant to the arrangement, is giving another person the right to occupy the lot. tenant has the same meaning as in the Residential Tenancies Act 2010. non-hosted short-term rental accommodation means short-term rental accommodation provided where the host does not reside on the premises during the provision of the accommodation. Date commenced: 21 September 2023
This is an unofficial reproduction provided for convenience. It is not the official version of the legislation. For the official, in-force version, see legislation.nsw.gov.au.
Reproduced from the NSW Department of Planning, Housing and Infrastructure (planning.nsw.gov.au), © State of New South Wales, under Creative Commons Attribution 4.0. Text extraction may introduce minor formatting artefacts — rely on the official source for anything decision-critical.