NSW advocates 7.5% tax on holiday rentals to fund homelessness services

Homelessness NSW is urging the state to impose a 7.5% levy on revenue from short-term holiday rentals, a policy modeled on a recent Victorian tax that raised $85 million for social housing. The group claims the levy could generate around $50 million for homelessness services and encourage owners to return properties to the long-term market. Data released by the charity shows nearly 50,000 short-stay listings compared with just over 22,000 long-term rentals, with the Northern Rivers and Mid North Coast having especially high ratios.

The Australia & New Zealand Short Term Rental Association counters that the comparison is flawed, noting duplicate listings across platforms and the seasonal nature of holiday rentals. While the industry argues many holiday homes would remain unaffordable as permanent rentals, the NSW Planning Minister emphasizes the state's ongoing construction of more than 80,000 homes as the main answer to the shortage.