Cairns Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Cairns

In Cairns, short-term rental accommodations like Airbnb and VRBO are primarily regulated at the local government level through planning schemes and local laws. The rules vary across different zones and areas within the Cairns Regional Council.

According to the Cairns Regional Council's planning scheme, CairnsPlan 2016, short-term accommodation is permitted in certain zones like Centre zones or areas located near tourist attractions, cultural sites, shopping, and leisure facilities. However, in low-density residential zones, operating a short-term rental may require development approval from the council.

The council's planning scheme has a specific code (9.2.17 Multiple dwelling and short-term accommodation code) that outlines the requirements for short-term accommodation, such as parking, amenity, and density provisions. Failure to comply with these requirements or operate without the necessary approvals can result in penalties as it constitutes a development offense under the Planning Act 2016.

Short-Term Rental Licensing Requirement in Cairns

In Cairns, short-term rental accommodation providers may need to obtain permits or licenses from the Cairns Regional Council, depending on the accommodation type.

For shared facility accommodation like backpacker hostels, caravan parks, and camping grounds, a permit is generally required under Local Law No. 6 (Camping Grounds, Caravan Parks and Shared Facilities Accommodation). The permit application process involves submitting details about the proposed business, including plans, maximum occupancy, waste management, fire safety measures, and more.

However, for entire homes or units used as short-term rentals, no separate registration or licensing system is in place specifically for platforms like Airbnb or VRBO. These properties would likely fall under the planning scheme's definition of "short-term accommodation" and may require a development approval from the council, depending on the zoning and intended scale of operation.

The Cairns Regional Council's planning scheme, CairnsPlan 2016, outlines the requirements and provisions for short-term accommodation. The Multiple dwelling and short-term accommodation code (9.3.15) within the planning scheme provides guidelines on aspects such as parking, amenity, density, and other provisions that short-term accommodation providers must comply with.

Failure to obtain the necessary approvals or operate without adhering to the planning scheme's requirements can result in penalties, as it constitutes a development offense under the Planning Act 2016.

While there is no specific licensing or registration system for short-term rentals at the moment, the council has indicated that it may consider introducing such a system or additional fees for short-term rental operators in the future. This could potentially allow for better monitoring and regulation of this activity within the Cairns region.

It is crucial for property owners intending to offer short-term accommodation to carefully review the local planning scheme, consult with the council's planning department, and ensure compliance with all relevant requirements and approvals based on the specific zoning and nature of the accommodation being offered.

Required Documents for Cairns Short-Term Rentals

When applying to launch and operate a short-term rental accommodation in Cairns, property owners may need to provide various documents and information to the Cairns Regional Council, depending on the specific circumstances of their property and the type of accommodation being offered.

While there is currently no separate registration or licensing system specifically for short-term rentals like Airbnb or VRBO, property owners may need to obtain development approval from the council if their intended use falls under the definition of "short-term accommodation" in the planning scheme.

To obtain development approval, property owners may need to submit the following documents:

• Completed development application form
• Site plans and floor plans of the property
• Details of the proposed operation, including the maximum number of guests, parking arrangements, and any shared facilities or amenities
• Evidence of compliance with the relevant codes and provisions of the planning scheme, such as the Multiple dwelling and short-term accommodation code (9.3.15)
• Any other supporting documents or reports required by the council, such as a waste management plan or noise impact assessment

If the property is part of a strata or community title scheme, property owners may also need to provide evidence of approval from the body corporate or confirmation that the development approval for the complex permits short-term accommodation.

For shared facility accommodation like backpacker hostels or caravan parks, property owners will need to obtain a permit from the council under Local Law No. 6 (Camping Grounds, Caravan Parks and Shared Facilities Accommodation). The permit application typically requires:

1. Completed application form
2. Site plans and layout plans
3. Details of the proposed operation, including maximum occupancy, waste management, fire safety measures, and amenities
4. Any other relevant information or materials requested by the council

It's important to note that the specific requirements may vary depending on the location, zoning, and nature of the proposed short-term rental operation. Property owners are advised to consult with the Cairns Regional Council's planning department and review the relevant planning scheme provisions to ensure they have all the necessary documents and approvals before commencing any short-term rental activity.

Cairns Short-Term Rental Taxes

Short-term rental accommodation providers in Cairns may be subject to various taxes, depending on the nature of their operations and the specific regulations in place.

Goods and Services Tax (GST): Hosts who operate short-term rentals as a business or enterprise are required to register for GST and charge GST on their rental income. The current GST rate in Australia is 10%.

Income Tax: Income earned from short-term rentals is considered taxable income and must be reported to the Australian Taxation Office (ATO). Hosts can claim deductions for expenses related to their rental operations, such as mortgage interest, property maintenance, and depreciation on furnishings.

Land Tax: Depending on the value and location of the property, short-term rental hosts may be liable for land tax. The land tax rates and thresholds vary across different states and territories.

Council Rates: Short-term rental properties may be subject to higher council rates or additional fees imposed by the Cairns Regional Council. The council has indicated that it may consider introducing a registration system or additional fees for short-term rental operators in the future.

Potential Levy or Tax: While not currently in place, the Queensland government is considering introducing a statewide levy or tax on short-term accommodation providers, similar to the 7.5% levy announced by the Victorian government. This potential levy aims to generate revenue for housing initiatives and regulate the short-term rental market.

It's important for short-term rental hosts in Cairns to stay informed about any changes or updates to the local and state regulations regarding taxes and fees. Consulting with a tax professional or the relevant authorities can help ensure compliance and proper reporting of income and expenses related to short-term rental operations.

Australia Wide Short-Term Rental Rules

While short-term rental regulations in Australia are primarily governed at the state and local government levels, some nationwide rules and guidelines apply across the country.

Registration and Reporting Requirements: Several states, including New South Wales, Western Australia, and Tasmania, have introduced or are in the process of implementing mandatory registration systems for short-term rental properties. These systems aim to collect data on the number and location of short-term rentals, enabling better monitoring and regulation.

Taxation: The Australian Taxation Office (ATO) considers income earned from short-term rentals taxable income. Hosts are required to declare their rental income and may be eligible for deductions related to the operation of their short-term rental business, such as expenses for cleaning, maintenance, and property management fees.

Code of Conduct: Some states, like New South Wales, have introduced a mandatory Code of Conduct for short-term rental hosts, guests, and platforms. These codes outline expectations for responsible hosting, guest behavior, and platform accountability. Violations can result in penalties or exclusion from participating in the short-term rental industry.

Fire Safety Standards: Several states have implemented fire safety standards specifically for short-term rental accommodations. These standards typically require the installation of smoke alarms, emergency lighting, and evacuation plans to ensure the safety of guests.

Strata and Body Corporate Regulations: In strata-titled properties or community title schemes, short-term rental operations may be subject to additional rules and restrictions imposed by the body corporate or owners' corporation. These can include bylaws regulating guest behavior, parking, and noise levels.

While the specific regulations vary across states and territories, there is a general trend toward increased regulation and oversight of the short-term rental industry in Australia. This includes measures to address issues such as housing affordability, neighborhood amenity, and compliance with planning and zoning requirements.

Short-term rental hosts and property managers must stay informed about the latest local, state, and national regulations to ensure compliance and avoid potential penalties or legal consequences.

Does Cairns Strictly Enforce STR Rules? Is Cairns Airbnb friendly?

Based on the discussions on platforms like BiggerPockets and Reddit, it appears that Cairns is not particularly Airbnb-friendly, and the city does enforce short-term rental rules to a significant extent, especially compared to some other cities.

Many users on these forums have expressed frustration with the strict regulations and requirements imposed by the Cairns Regional Council for operating short-term rentals. The council's planning scheme outlines specific provisions and codes for short-term accommodation providers, including obtaining necessary approvals, meeting parking and amenity requirements, and adhering to zoning restrictions.

Several Reddit users have mentioned instances where the council has taken action against illegal or non-compliant short-term rentals, issuing penalties or fines for operating without the required approvals or violating the planning scheme's provisions.

While some hosts may still attempt to operate under the radar, the general consensus seems that Cairns is not a hospitable environment for short-term rentals like Airbnb. The council appears to be actively monitoring and enforcing the rules, making it challenging for hosts to operate freely without facing potential consequences.

How to Start a Short-Term Rental Business in Cairns

Starting a short-term rental business in Cairns requires careful planning and adherence to local regulations. Here are the steps you should follow:

1. Research the Market: Analyze the demand for short-term rentals in Cairns and identify potential areas or neighborhoods that attract tourists and visitors. Consider factors such as proximity to attractions, amenities, and transportation.
2. Understand Local Regulations: Familiarize yourself with the Cairns Regional Council's planning scheme, CairnsPlan 2016, and the specific zoning requirements for short-term accommodation in your desired location. Determine if you need to obtain development approval or any other permits.
3. Consult with the Council: Contact the Cairns Regional Council's planning department to discuss your plans and ensure compliance with all relevant regulations. Seek guidance on the necessary approvals, fees, and any specific requirements for your property.
4. Prepare Your Property: Ensure your property meets the council's standards for short-term accommodation, including parking, amenities, and safety requirements. Consider renovations or upgrades to enhance the guest experience.
5. Obtain Necessary Approvals: If required, submit a development application to the council, along with all necessary documentation, such as site plans, floor plans, and details of your proposed operation.
6. Register Your Business: Register your short-term rental business with the appropriate authorities, such as the Australian Taxation Office (ATO), for tax purposes and any other relevant agencies.
7. Secure Appropriate Insurance: Obtain adequate insurance coverage specifically designed for short-term rental properties, as standard home and contents insurance may not cover incidents involving guests or rental activities.
8. Create Listings and Market Your Property: Once all approvals and registrations are in place, create listings on popular short-term rental platforms like Airbnb, VRBO, or Stayz. Develop a marketing strategy to promote your property and attract potential guests.
9. Manage Bookings and Guest Experience: Implement systems and processes to manage bookings, guest communication, check-in/check-out procedures, cleaning, and maintenance. Consider hiring a professional property management company to handle these tasks efficiently.
10. Comply with Ongoing Requirements: Stay up-to-date with any changes in local regulations, taxation rules, or industry standards. Ensure you maintain compliance with all relevant laws and regulations throughout your short-term rental business operation.

It's important to note that starting a short-term rental business in Cairns requires diligence and adherence to local regulations. Consulting with professionals, such as lawyers or accountants, can provide valuable guidance throughout the process.

Who to Contact in Cairns about Short-Term Rental Regulations and Zoning?

If you have questions or need assistance regarding short-term rental regulations, zoning requirements, or obtaining necessary approvals in Cairns, you can contact the following departments within the Cairns Regional Council:

1. Planning and Development Department:

Phone: 1300 69 22 47
Email: development@cairns.qld.gov.au

The Planning and Development Department is responsible for administering the Cairns Regional Council Planning Scheme (CairnsPlan 2016) and can provide guidance on zoning requirements, development approvals, and the specific provisions related to short-term accommodation in different zones.

2. Local Laws and Compliance Department:

Phone: 1300 69 22 47
Email: compliance@cairns.qld.gov.au

The Local Laws and Compliance Department handles inquiries related to permits and regulations for shared facility accommodation, caravan parks, and camping grounds, as outlined in Local Law No. 6 (Camping Grounds, Caravan Parks and Shared Facilities Accommodation).

3. Business Support and Licensing:

Phone: 1300 69 22 47
Email: businesssupport@cairns.qld.gov.au

This department can assist with inquiries regarding business licensing, registration requirements, and any specific permits or approvals needed for operating short-term rental accommodation in Cairns.

It is recommended that you contact the relevant department directly and provide details about your specific situation or proposed short-term rental operation. Council officers can then advise you on the applicable regulations, zoning provisions, and the necessary steps to ensure compliance with local laws and the planning scheme.

Additionally, you may consider scheduling a pre-lodgement meeting with council officers to discuss your plans and receive guidance on the approval process before submitting any formal applications.

What Do Airbnb Hosts in Cairns on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions on platforms like Reddit and BiggerPockets, Airbnb hosts in Cairns generally express frustration with the strict regulations and requirements imposed by the Cairns Regional Council for operating short-term rentals.

On the r/Cairns subreddit, several users have mentioned instances where the council has taken action against illegal or non-compliant short-term rentals, issuing penalties or fines for operating without the required approvals or violating the planning scheme's provisions. Many hosts feel that Cairns is not a particularly hospitable environment for short-term rentals due to the council's active monitoring and enforcement of the rules.

In a thread on BiggerPockets, a user shared their experience with the difficulties of operating short-term rentals in Cairns, citing the need to obtain development approvals, comply with specific codes and provisions in the planning scheme, and the potential for conflicts with strata or body corporate bylaws.

Another user on the BiggerPockets forum expressed caution about investing in short-term rentals in areas with strict regulations, as local governments could potentially change the rules and turn a profitable investment into a problematic one. They highlighted Cairns as an example of a market where the local council appears to be actively regulating and enforcing short-term rental operations.

Overall, the sentiment among Airbnb hosts on these platforms suggests that while short-term rentals can be profitable in Cairns, the strict regulatory environment and the council's enforcement efforts make it a challenging market for hosts. Many express concerns about the potential consequences of non-compliance, including fines and legal issues.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.