This article is informed by Short Term Accommodation Association Australia (STAAA) and insights from our August 2025 webinar.
Australia’s short-term rental accommodation (STRA) scene is shifting fast in 2025. State governments are introducing new levies and reviewing key rules (for example, Victoria’s short-stay levy and the Owners Corporation Act review). At the same time, local councils are rewriting planning rules suburb by suburb. Knowing the rules for your specific address matters more than ever—yet demand, especially from international travellers, remains a bright spot.
“Now more than ever, STRA owners and operators across Australia need a strong, unified voice to ensure evidence based and balanced regulations are achieved. Joining STAAA means you are not only protecting your own business, but also supporting an industry that contributes significantly to tourism and local economies.”
In this article, you’ll get a clear overview of what’s changing at the state level and how it intersects with your local council’s planning rules—plus practical steps to adjust pricing, calendar settings, cancellation policies, and owner communications.
“Our recent webinar highlighted just how quickly things are moving in Victoria. Between the short-stay levy and the Owners Corporation Act review, STRA owners and operators need to be proactive in understanding the changes, speaking up in consultations, and preparing their businesses to adapt.”
2025 STRA Policy Snapshot
Regulation is shifting at two layers: states are introducing levies, mandatory registration schemes and there are ongoing parliamentary inquiries and state reviews; local government areas (LGAs) are updating planning rules that decide whether and how you can operate at a given address.
State STRA taxes overview
- Victoria – 7.5% short-stay levy. What it is: a state charge on short stays (under 28 nights) applied to the total booking fee.
- Australian Capital Territory – 5% STRA levy. Key detail: direct bookings with the owner are exempt; the levy applies when a booking is made via a platform.
- Tasmania – 5% STRA levy announced and expected to commence; final start date and mechanics to be confirmed.
- LGA council rates – Various councils across Australia are increasing or updating local rates and charges affecting STRA operators.
Victoria: Owners Corporation Act (OCA) review
- What it covers: rules that govern strata/body-corporate buildings (e.g., apartment blocks).
- What it could mean: buildings may gain the power to impose tougher limits—or outright bans—on short-stay rentals.
- Have your say by 2 September 2025: lodge a short submission explaining who you are, where you operate, and how proposed changes would affect your business and community.
South Australia: Parliamentary Inquiry into STRA
Inquiry remains ongoing. Outcomes could shape how short-stays are regulated across the state; keep an eye on consultation windows.
Queensland, New South Wales and Tasmania: STRA review
Reviews are ongoing. Expect further adjustments; check the latest guidance before publishing or expanding inventory.
Western Australia: STRA planning reforms
Recently introduced a mandatory statewide STRA Registration Scheme for both hosted and non-hosted properties, with publicly available data and a heat map.
STRA owners must comply with all existing local planning laws, which may include needing development approval. Local governments are amending their planning schemes; where required, development approvals can be obtained by 1 January 2026.
Local councils (LGAs) nationwide
- A large number of councils are updating STRA planning policies.
- Many are introducing “preferred” and “non-preferred” areas:
- Preferred: short-stays are generally supported (often with clearer pathways to approval).
- Non-preferred: short-stays may face extra conditions, caps, or be discouraged—sometimes requiring specific permits and/or outright bans.
Practical takeaway: always check the rules for the exact council area where your property sits; neighbouring LGAs can differ widely. Remember that state levies and LGA permissions are separate. You must satisfy both.
STRA Demand snapshot
Domestic travellers still skew toward hotels, but international travellers show a stronger preference for rented houses/apartments (STRAs)—described as their most preferred option.
Source: TRA_AVE Benchmark Report 2024
For international visitors (73.2M nights) the picture flips—rented houses/apartments (32.2M) are the top choice, ahead of hotels (27.4M) and hostels (7.7M).
In short: hotels dominate domestic stays, but STRAs lead with overseas guests.
International-Friendly Listing Tips
- Remove arrival friction for long-haul guests:
- Clear arrival instructions that work after a long flight
- Obvious transport options and step-by-step check-in
- Straightforward house rules and quick, friendly messaging
- Tune policies for flight uncertainty: allow short stays and offer a flexible/part-refundable option to convert long-haul travellers who need wiggle room.
- Price by segment and season: push ADR on dates with strong international demand (school holidays, major events) and keep domestic-friendly weekend rates competitive.
- Show group/family value: lead with kitchens, laundry, parking, and bed setups—key reasons travellers choose STRs over hotels.
- Upgrade the guest journey: time-zone-friendly auto-replies, a pre-arrival guide, and automatic review requests to build rank fast.
Want to stay updated on state and LGA changes—and have your say in consultations? Join STAAA.
Practical Tactics to Win Bookings for Australian Hosts
These moves help new or expanding listings get traction fast while protecting long-term ADR.
1. Nail launch day (perfect from the start)
- Everything accurate: address pin, amenities, bed/bath counts, house rules.
- Pro photos & staging: aim for 15–20 strong images, plus floor plan, exterior, and neighbourhood highlights (beach, playground, cafés).
- Rich listing content: fill all amenity fields in your PMS; write location-specific copy (distances, lifts/stairs, parking).
- Multi-unit setup (if applicable): group similar units so visibility and reviews compound.
2. Calendar & rules: reduce friction to appear in more searches
- Allow 1–2-night stays (especially first 30–60 days).
- Avoid fixed changeover days (e.g., Sat–Sat) and “no one-day gaps.”
- Enable same-day arrivals where ops allow.
- Open at least 12 months ahead—and price those dates now (weekends, holidays, events).
3. Pricing for the first 90 days (treat it as an investment)
- Start competitive to local comps (use recent 12-month data) to win first bookings and reviews.
- Differentiate weekends vs weekdays; raise for events (concerts, sport, festivals).
- Use smart promos: last-minute (≈7 days), early-bird (longer windows, great for larger homes), and length-of-stay.
- Avoid over-stacking discounts; configure channels to apply the best single deal.
- Mind price parity: don’t undercut OTAs too deeply on your site (risk of visibility penalties).
- Adopt dynamic pricing early; review a pacing model (targets by month) and adjust.
4. Cancellation mix that converts
- Offer at least two options (e.g., non-refundable and fully refundable), with clear rate differences.
- Where supported, add a partially refundable middle tier.
5. Conversion habits that boost ranking
- Respond within ~1 hour to messages; use automations but personalise (use guest name).
- Proactive mid-stay check-in (24–48h after arrival) to fix issues before they become reviews.
- Ask for reviews every time and reply to all reviews; maintain high scores to protect visibility.
6. International-friendly touches (fits the demand data)
- Remove arrival friction: clear late-arrival instructions, step-by-step check-in, obvious transport options.
- Keep messaging simple and friendly; share a concise pre-arrival guide.
- Policy fit for long-haul travel: allow short stays; include a flexible/part-refundable option.
7. Australia-specific overlay
- WA: recent introduction of statewide STRA Registration Scheme and public data including heat map.
- VIC: recent introduction of 7.5% short-stay levy; current Owners Corporation Act review could tighten rules in strata/body-corp—have your say by 2 Sept 2025.
- ACT: 5% levy applies via platforms; direct bookings with owners are exempt.
- TAS: 5% levy announced (start date/details pending).
- QLD/TAS/SA/NSW: STRA inquiries/reviews ongoing.
- LGAs nationwide: many are revising STRA policies, adding preferred/non-preferred areas—always check the exact council for each property.
Webinar: How to Succeed with a New Listing
Missed it live? Watch the full recording and Q&A for a step-by-step playbook on launch fundamentals, first-90-days pricing, conversion-friendly cancellation policies, review habits, and 2025 Australian STRA updates.
Featuring speakers from Your.Rentals, STAAA, and optimiserentals. Policy details reflect August 2025.
Australia STRA 2025
Launch right, price your first 90 days, optimise cancellations, boost reviews, and navigate 2025 STRA rules.
