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From 1 January 2025, owners corporations can make rules to ban the use of lots within their developments for short stay accommodation.
The rules cannot apply to lots that are the lot owner or occupier’s principal place of residence. This means that if someone lives in an apartment unit as their principal place of residence, they can still rent out their unit or rooms while they live there, or while they are away temporarily.
The Short Stay Levy Act 2024 (the Act) came into force on 1 January 2025. The Act amends the Owners Corporations Act 2006 allowing owners corporations to make such rules.
What is short stay accommodation?
Short stay accommodation refers to apartments, houses and rooms rented like hotels and motels, through online providers such as Airbnb and Stayz. A short stay accommodation arrangement is a booking for a continuous period of less than 28 days.
Before banning short stay accommodation
Before making a rule to ban the use of lots for short stay accommodation, an owners corporation should:
- check whether their local council has any rules about short stay accommodation
- work with its owners and residents to manage the transition for any pre-existing bookings or guests staying in the building when the rule is made. Alternatively, the rule could include a future start date, to give lot owners and residents time to prepare.
Making rules to ban short-stay accommodation
All owners corporations have rules for the control, management, use or enjoyment of common property and lots. A lot is a part of land, buildings and airspace on a plan of subdivision that can be separately owned and sold.
Owners corporation rules cover day-to-day issues such as parking, pets and noise.
An owners corporation can make a rule by special resolution that bans the use of lots within its development for short stay accommodation.
What is a special resolution?
A special resolution is a decision made by an owners corporation with the support of 75% of lot owners. If the special resolution is made by a ballot or poll, it must be supported by 75% of lot entitlements.
For more information on owners corporation resolutions, go to Voting and ballots guidelines – owners corporations.
Find more information about the decision-making process in owners corporation meetings.
Rules must be consistent with other laws
Any rules an owners corporation makes must be consistent with the Owners Corporations Act 2006 and with any other legislation or regulations. This includes local government planning laws.
Enforcement and dispute resolution
Find more information about enforcing owners corporations rules and complaint handling.