Short-term rentals earning “double”, as homelessness group calls for MNC holiday tax

A Mid North Coast property manager has rubbished the idea that a 7.5 percent levy on short-term holiday rentals could result in more full-time rentals coming onto the market.

• “Most of my (short-term rental) owners are making double the rents that they would on the long-term market,” said Kirt Ryan from Aussie Abodes, which manages holiday property in the Forster area. 

  
  “Half the time they're second homes, they're holiday houses, so they were never going to go on the long-term market in the first place.” 

The background: Homelessness NSW has urged the state to introduce a 7.5 percent levy on short-term rental accommodation (STRA) bookings.

It reckoned it could raise $7.1 million a year on the Mid North Coast, which could be used to support homelessness prevention and frontline services. Victoria introduced a similar model in 2025.

Holiday haven: Short-term listings are dwarfing permanent rentals on the MNC at a ratio of eight to one, according to new analysis from Homelessness NSW, which compared STRA listings in January-March 2026 by Destination NSW and properties advertised for long-term rent on realestate.com.au.

Short term appeal: According to the latter, the median rental price in Forster is $670 a week for homes and $480 for units.

Meanwhile, basic two-bedroom units, set back from the beach in Forster’s residential areas, can fetch upwards of $2,000 a week in high demand periods. 

Property types: Homelessness NSW CEO Dom Rowe said too many entire homes were being taken off the permanent rental market, reducing options for renters. 

• “More than nine in every 10 Airbnb listings across major coastal markets are entire homes,” Rowe said. 

Not convinced: Kirt Ryan said tourism would be impacted, with holiday rentals providing “the most cost-efficient way for families to holiday”.

Mixed impacts: Ahoy Forster property manager Tracy Jacobs said a levy may make some owners “think twice about listing their property on Airbnb”, but would also likely result in higher costs for holidayers.

She may support a levy, if funds were used to provide homes to people in need. 

The rules: STRA in NSW can legally be rented 180 days a year, however a number of councils have implemented a lower cap, to encourage owners to list them as permanent rentals.

In September 2024, Byron Shire introduced a 60-day cap for “non-hosted” STRA in some areas. 

What does council think?: A spokesperson for MidCoast Council said a “balanced approach” is required to manage housing pressures and tourism demand.

On a potential levy, the spokesperson warned a “uniform approach may have unintended consequences” for regional tourism communities. 

Reform on the cards?: Rather than seeking to convert STRA stock into permanent housing, a spokesperson for the NSW government said the state is focused on building more affordable and social homes.

However, they said the government is currently reviewing the STRA framework and will make announcements “in due course”. 

Image credit: MidCoast Council.