Airbnb pushes back against the City of Sydney’s proposal to slash the current 180-day annual cap on short-term rentals, calling holiday lets an economic lifeline. The council wants to introduce a levy similar to Victoria’s charge on short-stay accommodation and confine listings to a host’s primary home to free up more housing.
Those changes aim to lift long-term rental supply in a market already squeezed by affordability pressures.
Under the council’s plan, properties would face new taxes and tighter eligibility rules alongside a reduced cap on the number of nights they can be rented each year. City of Sydney argues that restricting investor-style holiday listings will help redirect dwellings back into the traditional rental pool.
Policy designers are looking to Victoria’s short-stay levy as a template, using price signals and occupancy limits to discourage full-time short-term letting.
Airbnb counters that short-term stays allow owners to cope with rising living costs and mortgage repayments, especially in high-priced inner Sydney suburbs. According to the platform, bans or heavy restrictions overseas have not boosted long-term supply as promised and can even push up traditional rents when hosts exit the market.
The company also says only a very small share of the city’s total housing stock is on its platform, so the impact on overall availability is limited. It argues that most Sydney listings are either primary residences or homes used occasionally by owners, which it claims are not realistic candidates for year-round leasing.
Enforcement of existing regulations, rather than new caps and levies, is presented by Airbnb as the more effective policy lever.
