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July 3, 2026

Local guest houses under threat from proposed short-term letting laws

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Local guest houses could go the way of the dinosaur if the State Government’s short-term holiday letting bill passes without amendment, guest house operators say.

The operators are meeting with local Greens MP Tamara Smith at the Cavanbah Centre this morning to talk about the proposed changes, which are expected to be debated in State Parliament next week.

The key element of the bill for the owners of local guest houses and other licensed accommodation providers is that property owners living locally or externally will be allowed to let their houses and apartments on Airbnb and other platforms with very few restrictions.

While Byron Council can apply for the power to limit property owners who live outside the Shire from letting their properties for more than 180 days a year, many expect this will have little or no practical impact on short-term holiday letting in the area.

Victoria McEwen, the spokesperson for the accommodation operators, said youth hostels, apartments and larger hotels would all be affected by the legislation, but that small to medium sized guesthouses that would be the worst hit.

‘If this Bill is passed …we will almost certainly witness the extinction of some of these compliant operators within months because many cannot compete,’ said Mrs McEwen, who is a guesthouse owner/operator.

‘We pay significantly higher commercial rates, developer contributions for roads, fire safety and food safety audits, provide disability access, car parking contributions, not to mention the initial upfront costs to lodge a Development Application with Byron Shire Council which is in the tens of thousands of dollars, and often more.’

‘Registered operators have spent many years complying with government and Council standards, and yet we are all competing against residential properties who don’t have to meet any of these standards or have any of these extra costs.’

The operators are calling on the government to allow regional councils to to restrict people renting out their houses or rooms to as little as 30 nights a year.

They are also calling on the State Government to require all accommodation providers, including Airbnb hosts, to obtain a Development Application.

‘At the moment, we have an unbalanced industry with a different rule book for different operators,’ Mrs McEwen said.

Tamara Smith said the Greens would be pushing for similar amendments to the legislation, with greater powers for councils to set a maximum letting day limit according to the needs of their community.

‘The one-size-fits-all approach ignores the unique challenges of short term holiday letting presents to certain communities like ours,’ she said.

‘This is another example of the NSW Government consulting but not listening to the community.’



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