Finalised Framework for Short-Term Rental Accommodation

 

Following extensive consultation with the community and holiday-letting industry, the Short-Term Rental Accommodation (STRA) framework has been finalised. The new regulatory framework seeks to ensure local communities continue to enjoy the economic benefits of STRA, while managing potential adverse impacts. Importantly, the new STRA policy includes a deferred commencement clause and consultation is ongoing with Councils and industry, meaning the new planning rules won’t take effect until 1 November 2021.

The changes include a new planning framework, fire safety standards for STRA dwellings and a new Government-run STRA Register. The new framework complements the mandatory Code of Conduct and changes to strata legislation made by the Department of Customer Service.

Further, new provisions by way of amendments in the Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 regarding processes and penalties for strata disputes will commence on 1st July 2021.  Essentially, the provisions require an owners corporation to serve on all lot owners a copy of any NCAT application relating to their scheme and enables applicants to seek monetary penalties for breach of an NCAT Order.

The Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 also enshrines the landmark decision of Cooper v The Owners – Strata Plan No. 58068 [2020] NSWCA 250 (“Cooper”) which held that by-laws containing blanket bans on pets were harsh, unconscionable or oppressive so that by-laws cannot unreasonably prohibit the keeping of a pet.

The Design and Building Practitioners Act 2020 (NSW) (Act) has also taken effect to attempt to restore public confidence in the NSW building industry by regulating the design and construction of new buildings and the persons who do so to ensure compliance with the Building Code of Australia.

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Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.