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The Money Desk · Blog
Re:

Why South Perth Held Off on a Short-Stay Policy—and What Changed Since

South Perth’s 2024 decision to wait did not leave the City without rules: it adopted an unhosted short-term rental policy in March 2025 and gazetted a related planning-scheme amendment in July.
From TheFinanceBase Team4 min to read
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South Perth Council rejected a proposed short-stay policy by 4–5 on 25 June 2024, then unanimously voted to wait for State planning changes. That was a pause, not the end of local regulation: the City adopted a policy for unhosted short-term rentals in March 2025, and a related planning-scheme amendment was gazetted in July 2025.

Why did South Perth Council hold off in June 2024?

The immediate reason was timing and process. Deputy Mayor Bronwyn Waugh’s proposal had been presented in March and deferred to June. She amended it only hours before the June meeting; councillors and staff said there had not been enough time to consider the changes and that the procedure was unclear. The proposal was defeated 4–5. Council then voted unanimously to wait for State Government planning-regulation amendments, rather than proceed with a local policy that might soon need to be reviewed.

A council report warned that adopting the proposal before State changes could mean another review and community consultation. It said: “The city considers this may result in community confusion and an ineffective use of resources,” as reported by PerthNow on 18 July 2024.

What was the 2024 proposal trying to do?

Waugh argued that a local policy could address housing supply and residential amenity while directing short-stay accommodation toward tourism and activity areas, including Angelo and Preston streets and the Mill Point and Canning Bridge activity centres. Those were her arguments for the proposal, not findings that short-stay rentals had caused a measured housing or rent effect in South Perth.

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PerthNow reported that Waugh estimated about 400 short-term rentals were advertised in the City and that the City had approved three. These are historical figures she cited in 2024, not current counts. The February 2024 motion materials also described intended aims: supporting accommodation diversity and tourism while managing noise, parking, heritage and land-use conflicts. Council did not adopt that draft.

What rules did South Perth adopt afterward?

The City’s chronology shows a later shift from waiting to local action. Council resolved on 19 November 2024 to advertise a draft policy for 21 days, then adopted Local Planning Policy 2.5, Unhosted Short-Term Rental Accommodation, on 25 March 2025, according to the City’s short-term rental accommodation project page.

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Separately, Scheme Amendment No. 1 to Local Planning Scheme No. 7 was approved by the Minister and Western Australian Planning Commission and gazetted on 18 July 2025. The amendment introduced revised land-use classes and definitions to facilitate State short-term rental reforms, as the City’s scheme-amendments page explains. Policy 2.5 and the scheme amendment are related but distinct: the policy guides local assessment, while the amendment changed the planning scheme’s land-use framework.

Who does Policy 2.5 cover?

Policy 2.5 guides the location, design and operation of unhosted short-term rental accommodation (USTRA). “Airbnb” is often used as shorthand in discussion, but the policy is not limited to Airbnb or any other booking platform. It addresses the accommodation use, not the company through which a guest books.

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The City policy lists exceptions, including hosted short-term rental accommodation, hotels, house swaps and housesitting, personal holiday-home use, student exchange and workforce accommodation, and other named categories. It also provides a conditional exception for registered accommodation used for no more than 90 nights in a relevant 12-month period, where the zoning permits the use. The 90-night figure is therefore not a blanket exemption for every property or host. See the City’s current local planning policies for the complete scope and wording.

Where may an unhosted short-term rental be supported?

Policy 2.5 says proposals will generally not be supported unless they are within 200 metres of Perth Zoo or within 400 metres of a Neighbourhood Centre or Centre zone. These are the policy’s stated location criteria; an application in one of those areas still requires assessment under the applicable planning framework.

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Location alone is not enough. Applicants must address compatibility and neighbouring amenity, including separating outdoor living areas to reduce noise and placing and designing parking to limit late-night vehicle noise and headlights. The policy also says the City will generally not support isolated locations such as cul-de-sac streets or rear grouped dwellings. If neighbours object and an application is approved, the first approval must be time-limited to 12 months so impacts can be assessed.

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What occupancy and parking limits apply?

The policy allows no more than two occupants per bedroom. In multiple-dwelling developments, the maximum is six occupants. A dwelling, or part of one, may have only one short-term rental arrangement at a time.

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Parking depends on whether the Residential Design Codes apply. The policy’s rates are:

Property or planning context Policy parking requirement
Residential Design Codes apply One additional car bay for every three guests above six, rounded up.
Residential Design Codes do not apply One car bay per three guests, rounded up.
Strata or community-title scheme Visitor bays cannot be used to meet the requirement.

What must an application include?

Applicants need a detailed management plan and a detailed Code of Conduct. The management plan must cover operational arrangements; the Code explains the rules guests are expected to follow.

Management plan

  • How noise and antisocial behaviour will be managed.
  • How complaints will be handled, including after-hours response.
  • Manager contact details and emergency contact information.
  • How guests will receive the Code of Conduct.
  • Parking and transport arrangements.
  • The booking platform and registration number.
  • Waste management.

Code of Conduct and strata requirements

  • House rules, parking, check-in and checkout, and waste.
  • Relevant strata rules, plus pool or spa rules where applicable.
  • Rules on pets, parties and events.
  • Bushfire procedures where applicable.
  • For a strata-title application, a support letter from the strata manager or strata company.

Does refusing a short-stay application put a home back on the rental market?

No. The City says that refusing an unhosted short-term rental application on planning grounds does not require the owner to offer the property as a long-term rental; that decision is outside local government’s remit. The City says the policy may clarify when applications should be supported and may make some owners less likely to apply, but each proposal is assessed on its merits. Policy 2.5 should not be treated as a guarantee of increased long-term rental supply.

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