Is Airbnb legal in Canberra?

Airbnb Regulations in Canberra, ACT, Australia

As of October 2023, the regulations governing short-term rentals (STRs) in Canberra, Australia, are relatively permissive compared to other Australian jurisdictions. Here are the key aspects that prospective hosts should be aware of:

1. Registration and Licensing

Unlike many states, the Australian Capital Territory (ACT) does not currently mandate a specific registration or licensing system for STRs. This means that individuals can list their properties on platforms like Airbnb without a formal registration. However, discussions regarding the establishment of a registry are ongoing, particularly in light of growing concerns about housing affordability and neighborhood impacts.

2. Hosted vs. Non-hosted Rentals

Hosts who remain onsite—known as hosted rentals—can operate their STRs year-round without restrictions. In contrast, non-hosted rentals (where the host is not present) are limited to 180 days per year. This nuanced approach allows for flexibility while also addressing community concerns over long-term housing availability.

3. Planning and Strata Approvals

While a specific registration is not required, hosts must ensure their properties comply with local zoning laws and obtain any necessary planning or building approvals where applicable. Additionally, if the property is part of a strata scheme, hosts may need to secure permission from the owners’ corporation, as many strata by-laws prohibit or impose restrictions on STR operations.

4. Fire Safety and Insurance

Hosts are responsible for meeting fire safety requirements, which include the installation of smoke alarms, fire extinguishers, and other safety measures. It's advisable to have liability insurance that covers STR activities to protect against potential claims from guests.

5. Tax Requirements

Income generated from STRs is assessable and must be reported to the Australian Taxation Office (ATO). Hosts are also liable for land tax if the property is not their principal place of residence. Tax implications also span capital gains tax if the property was used for rental purposes when it's sold.

6. Community Relations and Compliance

Maintaining good relationships with neighbors and addressing any complaints promptly is crucial for hosts to avoid enforcement action. While enforcement actions are currently less stringent in Canberra compared to other cities, there is a growing sentiment among some residents for stricter regulations to mitigate the impacts of Airbnb listings on local housing markets and community dynamics.

7. Future Considerations

The ACT Government is reviewing the regulatory environment for STRs, and hosts should stay informed about potential changes that may introduce stricter requirements, including a registration system or limitations on the number of allowable STRs.

Conclusion

Canberra's STR landscape offers opportunities for hosts to engage in the market without a complex regulatory environment. However, awareness of local regulations and ongoing changes is essential for responsible hosting. Engaging with local authorities, community members, and complying with existing laws will be key to creating a sustainable and compliant short-term rental business in the city.