Indicators

Topic 7: Short-stay accommodation

Statewide number of 'secondary residence' short-stays
4,750
Apr-Jun 2026
Statewide growth in 'secondary residence' short-stays
52.5%
Oct-Dec 2019 to Apr-Jun 2026
Percentage of 'secondary residence' short-stays in Local Government Areas
0.1-10.6%
Apr-Jun 2026
What’s happening in Tasmania?

Growth in short-stay rental accommodation

Short-stay rental accommodation (‘short-stays’) isn’t an entirely new accommodation type in Australia: it has existed for decades as ‘holiday lettings.’ However, digital platforms — primarily Airbnb — have reduced the barriers to entering the market for both providers and purchasers, leading to significant growth in this accommodation type, both in Australia and internationally.

A short-stay is accommodation rented out for three months or less and generally provided in dwellings, such as houses, units or apartments, rather than in tourist or business accommodation such as hotel rooms.[1] Many different terms are used, but broadly, there are two main types of short-stays:

  1. ‘Primary residence,’ ‘hosted’ or ‘home-sharing’ — the provider lets out one or more rooms in their own home, with the provider either present (‘hosted’) or absent (‘home-sharing’) during the stay.
  2. ‘Secondary residence,’ ‘non-hosted’ or ‘whole home’ — the provider lets out an entire dwelling, and they live elsewhere and are not present during the stay. [2]

NB: Short-stay accommodation is sometimes referred to as short-term rental accommodation (STRA) or short-term rentals (STRs).

Overall, short-stay accommodation brings a range of benefits and disadvantages to neighbourhoods and regions. For example, while short-stay accommodation can revitalise tourism in regional areas which would otherwise have a shortage of tourist accommodation, it can also disrupt amenity and community connectedness for long-term residents whose neighbours are guests changing every few nights or weeks.

Our attention is focussed on the second category of short-stay accommodation because ‘secondary residence’ short-stays are delivered in dwellings which could otherwise be made available on the long-term rental market and thus provide a home.

NB: A ‘primary residence’ short-stay accommodation cannot readily be rented out without the accommodation provider first moving elsewhere.

Here, TasCOSS is examining the implications of the rapid growth of short-stay accommodation for long-term housing, including its effects on rental vacancy rates and affordability, rather than any benefits to tourism or impacts on neighbourhood amenity.

Rental prices have grown significantly in Australia in recent years, and the high prevalence of short-stay accommodation in some locations has been posited as one of the factors driving this price growth.

[1] Lang, M et al. (2025), Insights into Short-Term Rental Accommodation: History, statistics and landlord perspectives, no. 451, Australian Housing and Urban Research Institute, Melbourne.
[2] Burke, B et al. (2023), Short-Term Rental Accommodation: New directions, new debates, Final Report, New South Wales Planning Commission, April.

What’s happening in Tasmania? #2

While “the extent of the impacts of STRs [short-term rentals] on private housing markets is fiercely contested,”[1] there is national and international evidence that short-stay accommodation pushes down rental vacancy rates and drives up rental prices, particularly in popular tourist locations.[2] Researchers have found that the conversion of dwellings from long-term rentals to secondary residence short-stays has contributed to local rent price increases in high tourism areas such as Sydney’s Inner East, Byron Bay and Hobart.[3]

The ongoing housing affordability crisis in Australia has placed pressure on state and local governments to better manage short-stays — particularly secondary residence short-stays — with the aim of slowing rental price growth for long-term rentals.

Introduction of the Short Stay Levy

During the 2024 Tasmanian Election, the Tasmanian Liberals promised to introduce a levy on all short-stay accommodation, with the revenue from the levy committed to funding first home buyer initiatives.[4]

In December 2025, Treasury released a discussion paper and draft legislation to introduce the levy and invite submissions. This consultation closed on 25 February 2026. The discussion paper, draft legislation and additional information are available on the Department of Treasury and Finance website. TasCOSS made a submission to that consultation.

The draft legislation proposed that the levy would be imposed on primary residence short-stays, as well as secondary residence short-stays. See here for all submissions made to the consultation: https://www.treasury.tas.gov.au/economy/short-stay-levy-bill-2025-consultation

The Short Stay Levy Bill was tabled in the House of Assembly on 16 April 2026. At that time, the Government advised that “in recognition of feedback received through consultation, this Bill now excludes short-stay accommodation in a dwelling that is also usually occupied by the owner. This means that if a homeowner rents out a spare bedroom for short-stays in their home, that booking will not be subject to the levy.” The Government’s Bill also newly excluded direct bookings from the levy. [5]

As of August 2026, the Bill is before the Legislative Council. If the proposed legislation is passed by the Parliament, Tasmania’s levy on short-stay accommodation will commence no earlier than 1 January 2027.[6] While the levy will be paid by booking platforms, the Tasmanian Government expects the platforms will pass on the entirety of the levy to customers, so that accommodation providers are not out-of-pocket.[7]

Our submission examines these issues in greater detail, but we have provided a succinct comparison of short-stay levies in other jurisdictions with the planned levy for Tasmania. As of February 2026, only Victoria and the Australian Capital Territory (ACT) have introduced levies on short-stay accommodation in Australia.

[1] Phibbs, P (2022), Monitoring the Impact of Short-Term rentals on Tasmanian Housing Markets, Baseline Report, Shelter Tasmania.
[2] Lang, M et al. (2025), Insights into Short-Term Rental Accommodation: History, statistics and landlord perspectives, no. 451, Australian Housing and Urban Research Institute, Melbourne.
[3] Ibid.
[4] Tasmanian Liberals (2024), ‘Making it easier for Tasmanians to own their own home,’ media release, 18 February 2024.
[5] Short Stay Levy Bill 2026.
[6] The Hon Eric Abetz MP (2026), ‘Short Stay Levy Bill 2026 tabled in Parliament,’ media release, 16 April.
[7]  Department of Treasury and Finance (2025), Tasmania Short Stay Levy Discussion Paper, Tasmanian Government, December.

What’s happening in Tasmania? #3

[1] State Revenue Office Victoria (2026), Understanding the Short-Stay Levy, Victorian Government.
[2] ACT Revenue Office (2026), Short-Term Rental Accommodation Levy, ACT Government.
[3] Department of Treasury and Finance (2025), Tasmania Short Stay Levy Discussion Paper, Tasmanian Government, December.

What does the data show?

A note about data: CBOS has recently published a new dashboard for data on short-term rental accommodation in Tasmania from January 2025 onwards.  Data from October to December 2019 to October to December 2024 is also available.

Updated on 14 August 2026 with the latest available data.

Figure 7.1:

In Tasmania, short-stay accommodation is classified as either ‘primary residence’ or ‘secondary residence.’ NB: See above for an explanation of these two categories. In the North and North West of Tasmania, ‘secondary residence’ short-stays make up over half of all short-stays. In contrast, in southern Tasmania, less than half of all short-stays are ‘secondary residence’ short-stays.

Figure 7.2:

The number of secondary residence short-stays in Tasmania has grown by 53% from 3,112 in October-December 2019 to 4,750 in April-June 2026.

Figure 7.3:

As of April-June 2026, the number of secondary residence short-stays varies significantly by LGA from a high of 725 in Hobart to a low of 7 in Brighton. There are 1,443 ‘secondary residence’ short-stays in the north, 692 in the north-west, and 2,520 in southern Tasmania.

What does the data show? #2

Figure 7.4:

The density of ‘secondary residence’ short-stays is measured by the number of ‘secondary residence’ short-stays expressed as a proportion of the total number of dwellings in each area. The density of ‘secondary residence’ short-stays varies significantly between LGAs, from 0.1% in Brighton to 10.6% in Glamorgan-Spring Bay.

Figure 7.5:

The growth rate of ‘secondary residence’ short-stay accommodation varies significantly across LGAs. The number of ‘secondary residence’ short-stays more than doubled in the LGAs of Devonport, King Island, Southern Midlands, Central Highlands, Latrobe and George Town. Of Tasmania’s 29 LGAs, 19 experienced a growth rate exceeding 50% between 2019 and April-June 2026.

Figure 7.6:

As of April-June 2026, ‘secondary residence’ short-stays make up 1.8% of all residential dwellings in Tasmania. The density varies significantly between cities, from 0.7% of all dwellings in Burnie to 2.9% of all dwellings in the Hobart LGA.

TasCOSS’s view 

As we’ve noted above, there is good evidence that the presence of secondary residence short-stays contributes to falling rental vacancy rates and higher long-term rental prices. As such, we’re supportive of the Tasmanian Government strengthening regulatory responses to secondary residence short-stays.

There are four broad categories of regulatory response available to governments:

  • Registration and licensing;
  • Land use planning;
  • Caps on the number of nights a dwelling can be used for STRAs; and
  • Financial levers, such as levies.[1]

The Local Government Association of Tasmania (LGAT) has called for “fair regulation of non-housing use,” arguing that councils should be enabled to manage the impact of commercial short-stays through their planning schemes.”[2]

Short Stay Levy: Insufficient to change behaviour?

The proposed Short Stay Levy (SSL) for Tasmanian short-stays falls into the fourth category of regulation. For a levy to achieve an ultimate outcome of reducing the number of short-stays in Tasmania, the amount levied needs to be high enough to drive decisions about whether the owner uses the property for short-stays or long-term rental.[3]

TasCOSS’s view is that, at only 5% of the cost of accommodation, the size of the proposed levy is unlikely to reduce demand from customers of short-stays (if owners pass on the cost of the levy). For example, a stay costing $1,300 would attract a levy of only $65 for customers. Similarly, if owners opt to absorb the cost of the levy rather than pass it on to customers, a levy of $65 on a $1,300 stay is insufficient to materially change the cost-benefit analysis of an owner offering short-stay accommodation compared to long-term rental accommodation.

Hence, as a standalone regulatory measure, the proposed levy is unlikely to be effective in changing the behaviour of customers or owners of short-stays, which might then lead to fewer short-stays or at least slower growth in short-stays. Arguably, the primary outcome of the proposed SSL will be to raise revenue for the Government — estimated at $11 million per annum.[4] TasCOSS’s view is that, rather than direct this revenue to initiatives for first home buyers, which risks further increasing house prices, it should be directed to supplementing funding for social housing, as per Victoria.

[1] Activate Consulting & Hornsby & Co. (2025), Short-Term Rentals in Australia: A qualitative exploration of regulatory impacts in 18 Local Government Areas, University of Canberra, Canberra.

[2] Local Government Association of Tasmania (2024), Local Government Housing Position Statement.

[3] Ibid.

[4] Department of Treasury and Finance (2025), Tasmania Short Stay Levy Discussion Paper, Tasmanian Government, December.

TasCOSS’s view #2

Need for local regulatory responses

A Tasmanian Liberals media release during the 2024 Tasmanian Election emphasised their commitment to statewide short-stay regulation, asserting their commitment to ensuring “continued statewide consistency of short-stay regulation in Tasmania, by prohibiting the imposition of arbitrary caps and further geographic distortions of the market.”[1]

TasCOSS is calling on the Tasmanian Government to facilitate local regulatory responses, such that individual councils can develop and implement responses to short-stays which respond to location-specific issues in their LGAs. As noted by Professor Peter Phibbs for Shelter Tasmania, “other Australian states have recognised that this ‘one-size-fits-all’ approach is not efficient.”[2] As is evident when considering the varying density of short-stays in Tasmanian LGAs, there are different short-stay accommodation markets operating (e.g. holiday regions versus suburban areas), and as such, “regulation that seeks to drive behaviours in one market may not work in another.”[3]

In Australia, different jurisdictions are using different combinations of local regulatory approaches. LGAT argues that where short-stay is impacting housing supply and security, councils in Tasmania should be empowered to “investigate and apply a differential rating regime for commercial short-stays in residential areas.”[4]

Need for better data

While regulation of short-stay accommodation is increasing across Australia and internationally, there is not yet good evidence of the effectiveness of these measures for improving long-term rental affordability. This highlights the critical importance of detailed, accurate and widely available data about short-stay accommodation to inform judgements about its impact on rental affordability and the effectiveness of various regulatory measures.[5] [6] [7]

One dataset obviously missing from what is currently published by the Tasmanian Government is about the number of long-term rentals which are converted to short-stays, and vice versa. For more information, please see Professor Peter Phibbs’s excellent analyses of this type of data for Shelter Tasmania (see Progress Report #2).

[1] Tasmanian Liberals (2024), ‘Making it easier for Tasmanians to own their own home,’ media release, 18 February 2024.

[2] Phibbs, P (2022), Monitoring the Impact of Short-Term rentals on Tasmanian Housing Markets, Baseline Report, p. 29, Shelter Tasmania.

[3] Activate Consulting & Hornsby & Co. (2025), Short-Term Rentals in Australia: A qualitative exploration of regulatory impacts in 18 Local Government Areas, University of Canberra, Canberra.

[4] Local Government Association of Tasmania (2024), Local Government Housing Position Statement.

[5] Ibid.

[6] Phibbs, P (2022), Monitoring the Impact of Short-Term rentals on Tasmanian Housing Markets, Baseline Report, p. 29, Shelter Tasmania.

[7] Lang, M et al. (2025), Insights into Short-Term Rental Accommodation: History, statistics and landlord perspectives, no. 451, Australian Housing and Urban Research Institute, Melbourne.

TasCOSS’s recommendations

TasCOSS is calling on the Tasmanian Government to:

  1. Introduce the proposed Short Stay Levy but increase the amount levied to 7.5% of the total booking costs, as per the Australian Capital Territory and direct the revenue raised to social housing rather than first home buyer initiatives.
  2. Through policy and legislation, enable individual councils to introduce their own, bespoke regulatory responses to short-stay rental accommodation in their own Local Government Areas, informed by local economic, social and housing conditions.
  3. Strengthen data reporting and analysis to provide more useful information about short-stay rental accommodation in Tasmania to inform policy-making.