Brisbane City Council has abandoned a controversial crackdown on short-stay rental properties such as Airbnb and Stayz, just months after promising sweeping reforms to free up housing for renters.
Lord Mayor Adrian Schrinner confirmed on Wednesday that the proposed permit scheme for holiday letting “will not proceed at this time,” citing economic uncertainty, federal property tax changes, and rising interest rates as key factors in the dramatic reversal.
“Put simply, a lot has changed in recent times, and we don’t believe now is the right time to be adding additional regulation,” Schrinner said.
The decision marks a major retreat from the council’s earlier hardline position, which targeted approximately 500 of the city’s nearly 2,200 short-stay listings and aimed to force them back onto the housing market by June 30, 2026.
Under the now-shelved reforms, operators would have been required to obtain council permits, hold public liability insurance, provide a 24-hour complaints contact, and comply strictly with zoning laws.
Brisbane City Council previously claimed the proposed reforms would help return hundreds of properties to the housing market. Hosts whose guests repeatedly caused problems faced being stripped of permits under a proposed “three strikes” system, while unapproved operators risked fines exceeding $140,000.
At the time, Schrinner said the changes would “help return hundreds of homes” to renters while protecting suburban neighbourhoods from anti-social behaviour. The council said the reforms followed recommendations from its Short Stay Accommodation Taskforce, established in 2023 to investigate security concerns, overcrowding, and neighbourhood disruption linked to short-term letting.
However, the Lord Mayor now says growth in the sector has slowed and property management standards have “improved dramatically” since the debate began. Council consultation also found that some holiday properties were being used to house domestic violence survivors, insurance claimants, and hospital patients.
The council will instead continue enforcing existing local laws and working directly with booking platforms to target disruptive hosts. Schrinner noted that the city receives about 100 complaints per year relating to holiday rentals across a population of more than 1.3 million residents.
Opposition Leader Jared Cassidy told ABC Brisbane that the Lord Mayor had “totally capitulated” to the industry “at the expense of renters,” accusing the LNP of wasting significant time and money on reforms that would now be scrapped.
Industry data suggests demand for short-stay accommodation continues to grow as Brisbane prepares to host the 2032 Olympics. AirDNA reported Brisbane short-stay occupancy rates reached 61 per cent in 2026, up four per cent year-on-year, with properties charging an average nightly rate of approximately $177. Hometime also found that supply rose 19 per cent during 2025 as operators moved to capitalise on expected tourism demand ahead of the 2032 Olympics.
