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Australia: Homelessness NSW has called on the New South Wales government to introduce a 7.5 per cent levy on short-term rental bookings, claiming the measure could raise almost AUD$50 million for homelessness services.
The advocacy organisation said almost 50,000 short-term rental listings were recorded across NSW during the first quarter of 2026, compared with 22,347 homes advertised for long-term rent on realestate.com.au.
However, the figures compare the overall number of short-term listings with a snapshot of properties being advertised for long-term rent, rather than establishing how many short-term properties could be transferred directly into the residential market.
Homelessness NSW said the difference was particularly pronounced in coastal destinations. In the Northern Rivers region, it identified 5,303 short-term listings and 393 available long-term rentals, while the Mid North Coast reportedly had eight short-term listings for every long-term property advertised.
CEO Dom Rowe said: “We cannot pretend this industry has no responsibility to help address the housing crisis when NSW has more than twice as many short-stay listings as homes currently available to renters.
“A modest levy would allow the industry to continue operating while making a meaningful contribution to keeping people housed and supporting those who have nowhere safe to go.”
Homelessness NSW proposed using revenue from the levy to increase staffing at homelessness services amid growing demand. It said almost 70,000 households were on the state’s social housing waiting list.
The proposal follows the introduction of a 7.5 per cent short-stay levy in Victoria in January 2025. Revenue from the Victorian measure is allocated to social and affordable housing, with 25 per cent designated for regional Victoria.
Airbnb previously opposed the Victorian levy and said there was no evidence that such measures improved rental availability or affordability.
NSW already operates a statewide registration and safety framework for short-term rental accommodation. Non-hosted properties are generally limited to 180 days annually in Greater Sydney and several other areas, while most of Byron Shire has operated under a 60-day cap since September 2024.
The NSW government has been reviewing its short-term rental framework and potential measures intended to increase long-term housing supply. It has not announced whether it will adopt the proposed levy.
Highlights
- Homelessness NSW has proposed a 7.5 per cent levy on short-term rental bookings.
- The organisation estimates that the measure could generate almost AUD$50 million.
- Its research identified almost 50,000 short-term listings and 22,347 advertised long-term rentals across NSW.
- The figures show the largest differences in coastal markets including Northern Rivers and the Mid North Coast.
- NSW has not confirmed whether it will introduce a levy.
