Thursday, September 19, 2024

New rules for short-term rental sector

The WA Government has today introduced new local planning regulations to support the Short-Term Rental Accommodation (STRA) sector.

The amendments to the Planning and Development (Local Planning Schemes) Regulations 2015 will ensure a consistent set of rules for hosted properties – where the host lives onsite – and unhosted properties where guests have exclusive use of the accommodation.

Metropolitan local governments will be required to amend their planning schemes to include the requirement for a development approval for STRA over the next 12 months. Regional local governments that do not already require development approval for STRA may choose to amend their planning schemes to require approval.

Planning approval will be required for unhosted STRA’s over 90 nights.

Developed following consultation with local governments, these new rules include:

  • new definitions to be introduced into all local government planning schemes which deal with STRA;
  • statewide exemptions from planning approval for hosted STRA properties;
  • new planning exemptions for unhosted STRA within the Perth metropolitan area where the owner does not intend to rent their property out for more than 90 nights within a 12-month period;
  • flexibility for regional local governments (including Peel) to implement planning rules that suit the needs of their communities; and
  • revised tourism land uses that can be adopted into local government planning schemes.

The changes do not include limitations or ‘caps’ on the number of nights that a STRA property can be leased on the short-term market.

All providers of hosted and unhosted STRA properties within Western Australia must be registered on the STRA Register by 1 January 2025 to lawfully advertise and take bookings. The resulting data will be used to support future regulation and planning requirements of the STRA sector.

“These regulatory changes will bring clarity to local governments on how short-term rental accommodation is defined and how related land uses should be regarded in a planning context,” said Planning Minister, John Carey.

“Importantly, these reforms will enable local governments to commence amendments to their local planning schemes.

“Introducing STRA as a dedicated land use will also provide transparency and certainty to communities on where short-term rental accommodation may be permitted in their neighbourhoods.

“I encourage STRA owners to contact their local government to check if they require development approval,” he said.

To give STRA owners more time to complete the process, the deadline for registering properties to receive 12-month free registration, valued at $250, has been extended by a further two months to 1 December 2024.

Currently, STRA owners must comply with all existing local planning laws, which may include needing development approval. Local governments will be amending their local planning schemes during 2025 so that where required, development approvals can be obtained by 1 January 2026.   

STRA owners may register their property without development approval and where applicable, STRA owners must update the register with their development approval number once granted. STRA owners and operators should contact their local government about the new planning regulations to ascertain any approval requirements that currently exist or may be introduced in their area.

Information collected through the STRA Register will be provided to local governments to better enforce their requirements.

“These new planning regulations will work hand-in-hand with the STRA register to give communities, users, and authorities a clearer picture of the STRA sector, enabling better regulation and planning,” said Commerce Minister, Sue Ellery.

“We’re supporting owners make the transition by extending the fee-free registration period, meaning all STRA properties signed up by the end of November will receive a complimentary year of registration, valid until the renewal date in 2025.”

More details on the new planning requirements are available at: Short-Term Rental Accommodation Planning Reforms (www.wa.gov.au).

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