airbnb ceo
Airbnb Co-Founder and CEO Brian Chesky speaks at an event to launch the brand's Chinese name, in Shanghai, China, March 22, 2017. Reuters/Adam Jourdan

The NSW government has accepted many of the recommendations of the parliamentary inquiry about the permission on renting out entire homes through Airbnb or Stayz. However, the NSW government said that it would finalise the details of the regulatory framework. It said that a consultation paper on potential regulatory approaches would be released in the near future.

Parliamentary committee's final report recommended empty properties' short-term Airbnb rentals would be allowed unless impact thresholds exceeded. If the impact threshold exceeded, the Airbnb landlords would be required to apply to the local council for a development application. However, hosts who rented out their spare room should be exempted from the development application. The report has suggested that hosts who temporarily let out their home during a holiday should also be exempted. "As a principal place of residence, the owner will likely be in residence for a majority of the time. While such a let would not be hosted, we believe that it will be of low impact. This is because the dwelling is a private home rather than an investment property or beach house," the report said.

Party house provisions were taken into consideration in the report. Based on the recommendation, the NSW government should introduce Queensland-style party house regulations as an additional compliance tool. It included provisions that allowed councils to designate party houses that were properties used for high impact STRA including regular parties, bucks nights, hens nights, wedding receptions, raves and similar events. The provision also recommended the imposing of penalties and prohibitions on rogue operators quickly.

In May, the NSW government will release an options paper that will further consult the public on how Airbnb should be regulated. The rental service Airbnb has more than 40,000 listings throughout NSW but the regulations vary from council to council. Planning and Housing Minister Anthony Robert said that he would not make apologies for listening to the people in the state in the policy's development. He said that it will be an opportunity for people who live in strata to participate in the policy. He said that the extra time they needed to get the public's opinion would be worthwhile.

Airbnb's country manager for Australia and New Zealand Sam McDonagh said that further regulation would ensure certainty for the customers. He said that the company would provide information to stakeholders and regulators so that they would come up with informed regulations and decision.

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