Western Australia is setting a new course for short-term rental accommodation (STRA) with a wave of fresh regulations designed to bring order to the market. This move comes as part of the Cook Government’s broader effort to streamline the sector and ensure fairer management of holiday homes across the state.
At the heart of these changes is a set of amendments to the Planning and Development (Local Planning Schemes) Regulations 2015. These new rules are crafted to standardise how hosted and unhosted properties are managed, paving the way for a more transparent and efficient system. Hosted properties, where the owner remains onsite, and unhosted properties, where guests enjoy exclusive use, will now operate under a clear, consistent set of guidelines.
One of the key elements of the reform is the requirement for metropolitan local governments to amend their planning schemes. They will need to incorporate a mandate for development approval for STRA within the next year. Regional councils that currently do not require such approvals will have the option to adopt similar measures if they see fit.
For unhosted STRA properties that are rented out for more than 90 nights, planning approval will now be a necessity. This change aims to regulate the more intensive use of properties and provide local councils with the tools needed to manage these rentals effectively.
The new regulations introduce several other notable updates. They include:
- Fresh definitions for STRA to be integrated into local planning schemes, helping to standardise the understanding and regulation of these properties.
- Statewide exemptions from planning approval for hosted STRA, simplifying the process for owners who live on-site.
- New exemptions for unhosted STRA in the Perth metropolitan area, provided the property is rented for fewer than 90 nights per year.
- Flexibility for regional local governments to tailor planning rules to better suit local needs.
- Updated tourism land use categories for inclusion in local planning schemes.
Importantly, the regulations do not impose any caps on the number of nights a property can be rented short-term, focusing instead on clear rules and registration requirements.
A significant part of the reform is the introduction of the STRA Register. All STRA providers must register their properties by 1 January 2025 to lawfully advertise and take bookings. To support this transition, the government has extended the deadline for receiving free registration, worth $250, by an additional two months, until 1 December 2024. This extension aims to give property owners ample time to comply with the new requirements.
As part of the process, STRA owners must adhere to existing local planning laws, which may include obtaining development approval. Local governments will update their planning schemes during 2025 to reflect these changes, with the aim for all necessary approvals to be in place by 1 January 2026. While properties can be registered without immediate development approval, owners must update their registration with the approval number once granted. For specific details about approval requirements, STRA owners are encouraged to contact their local government.
The data collected through the STRA Register will assist local governments in enforcing new requirements and ensuring compliance within their jurisdictions.
Planning Minister John Carey highlighted the importance of these regulations in his remarks. He noted that the reforms follow the Short-Term Rental Accommodation Act 2024, which was passed earlier this year to enhance the sector’s management. Carey emphasised that the new regulations provide clarity on STRA definitions and land uses, aiding local governments in their planning processes. He also encouraged STRA owners to check with their local authorities about development approval requirements.
Commerce Minister Sue Ellery also weighed in, praising the regulations for offering a clearer view of the STRA sector to communities, users, and authorities. She underscored the importance of the fee-free registration period extension, which will support property owners during the transition and ensure a smoother adjustment to the new rules.
As Western Australia embarks on this regulatory overhaul, it’s clear that the state is aiming to create a more organised and fair short-term rental market. By addressing both hosted and unhosted properties with a consistent set of rules and a robust registration system, the Cook Government hopes to strike a balance between facilitating the growth of the STRA sector and maintaining local control and oversight. The coming months will be crucial as local governments and property owners adapt to these new regulations and contribute to shaping a more regulated and transparent short-term rental landscape in Western Australia.
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