Byron Bay’s council could impose a 60-day annual cap on short-term rentals in the holiday hotspot, with the power to reject applications for anything beyond that, under formal planning advice given to the New South Wales government.
The advice from the state’s Independent Planning Commission has been largely welcomed by the community, and comes after the Byron shire council last year voted for a 90-day cap – only for the former government to intervene and quash the plan.
The commission recommended against the proposed 90-day cap for rentals like Airbnb properties, finding it would “not adequately achieve its stated objectives and may have unintended adverse economic consequences”.
Instead, it found tightening the rules to 60 days would provide sufficient incentive to get people to put properties on to the longer term rental market, while supporting “incidental use of homes” as holiday rentals.
It also said the council should be allowed to assess applications if owners want to rent out properties beyond the cap, allowing for the social and economic impacts and benefits to be assessed and managed in line with community needs.
The commission also recommended the council be allowed to place restrictions on new builds to prevent them from all becoming short-term rentals.
It said the government needed to work with the council and the Northern Rivers Reconstruction Corporation to formalise arrangements for emergency use of short-term properties for crisis accommodation in events such as floods ahead of the next emergency.
Airbnb’s head of public policy in Australia, Michael Crosby, said the company and hosts in Byron Bay were “surprised and disappointed” by the recommended cap.
“[It] would have significant negative economic impacts on a town and region that is heavily reliant on tourism – and could hurt jobs and small businesses at a crucial time,” he said.
“The report fails to provide compelling evidence for how a 60-night cap would materially address housing issues in the region.”
The Byron shire mayor, Michael Lyon, said the recommendations were a fantastic outcome.
“What it shows is that we’ve been heard, we’ve been understood and ultimately we’ve been agreed with,” he said.
“We’re not trying to kill holiday letting, we’re just trying to get the balance right.”
Late last year the council, which has the highest rate of homelessness in the state outside Sydney, voted for a 90-day cap for some properties in a bid to get more homes on to the long-term rental market before the government intervened and sent the matter to the commission.
This would have been the strictest cap in the state after the government allowed councils to opt in to a 180-day cap.
Since then, the commission has conducted public hearings into the issue, listening to residents, owners, renters and the council.
The Greens MP for Ballina, Tamara Smith, called on the government to immediately endorse the advice.
“A 60-day cap will stop many investors going down the path of putting their whole homes on holiday let platforms, and turn to the private rental market instead,” she said.
“This is a win for our community and communities across the state are watching very carefully because they too want to rein in unfettered holiday letting.”
The commission made note of the particular position Byron was in and why it was more challenged than other parts of the state, noting its global holiday destination status and flooding risk.
“Some of the housing affordability and availability issues experienced … are consistent with overarching national trends and the particular pressures faced by desirable coastal regional locations,” the advice reads.
The planning minister, Paul Scully, said he will review the advice in coming weeks.
“We recognise maintaining the function and character of places people live is important, while maintaining the appeal for visitors,” he said
“I will consider the findings in this context.”
