Follow the money.
The cynic in me sees that short term rentals will be supported by each of the State governments because there is a ‘buck’ to be made by the government from it. The ‘bucks’ will come from taxes on the money earned from the rentals, provisional tax, possible GST (depending upon the services offered), and in Capital Gains Taxes when the properties are sold.
However, undeclared short term rentals have the potential to ‘fly under the radar’ of the ATO and become part of the ‘black economy’.
Owners who let out their apartments on a short term basis need to become aware of the consequences of their actions, and should obtain legal and financial advice before they do so.
An unaware owner who decides to rent their property on a short term basis may find that capital gains tax liabilities might end up overwhelming any income made from renting it out. If the unaware owner is on a pension then their pension may be impacted. Is it really worth it in the end?
Do you suspect that some owners in your building are renting out their apartments on a short term basis and may not be complying with their ATO obligations? What are you going to do about it?