Booking

A booking in short-term rentals is a confirmed reservation that locks in dates, price and terms. It’s the trigger for revenue, regulatory counting and tax obligations, so getting the status right—and recorded—matters for compliance and performance.

Definition in STR

In New South Wales, a confirmed booking translates to “booked nights” for regulatory caps, with non-hosted dwellings in Greater Sydney and designated LGAs limited to 180 booked nights per calendar year on the STRA Register. All bookings, whether via platforms or direct channels, count toward these caps, and a valid STRA Property ID must appear on listings, with booking data used to monitor compliance.

Western Australia has legislated compulsory STRA registration, requiring a registration number in advertisements. Booking platforms are expected to display registration details and prevent unregistered properties from accepting bookings, reinforcing that only compliant listings can be reserved.

Channels and sources

Bookings flow from online travel agencies such as Airbnb, Booking.com and Stayz, as well as direct channels. From 1 July 2024, these electronic distribution platforms must report hosts’ short-term accommodation transactions to the ATO under the Sharing Economy Reporting Regime, so every confirmed reservation becomes part of your reported income data.

Victoria’s statewide 7.5% short-stay levy begins on 1 January 2025 and applies to the price of each eligible booking. Both platforms and accommodation providers are responsible for collecting and remitting the levy across OTA and direct channels, ensuring consistent treatment regardless of how the booking is made. Western Australia is also rolling out a statewide register from 2025 with mandatory property numbers, which platforms must display and enforce.

Confirmation status and payments

Confirmation timing and payouts vary by channel. On Airbnb, a booking is confirmed when payment is processed, with host payouts typically sent about 24 hours after the scheduled check-in. With Booking.com Payments, funds are generally released after check-out on a weekly or monthly cycle, depending on your payout settings.

Under Australian Consumer Law, cancellation and refund terms must be clear at confirmation and not unfair. If a service cannot be supplied or there is a major failure, guests are entitled to a refund despite any “no-refund” wording. From 1 January 2025 in Victoria, the 7.5% short-stay levy is collected at booking by platforms or providers, appearing as a line item and reducing the net payout for affected stays.

Calendar blocking and availability

Confirmed bookings reduce your available nights and, in NSW, count toward annual caps. Non-hosted properties in Greater Sydney and nominated LGAs are limited to 180 nights per year; once the cap is reached, platforms must block further bookings for the remainder of the year. STRA registration and compliance with the STRA Fire Safety Standard are mandatory, and platforms may disable availability if the registration is missing, expired or mismatched.

Byron Shire is subject to a tighter annual cap of 60 nights for most non-hosted STRA from 23 September 2024, materially reducing bookable days. Owners should plan peak periods carefully and monitor booked nights to avoid involuntary calendar blocks.

Cancellation and modification policies

Australian Consumer Law requires fair, transparent terms. If a provider cancels or cannot supply the stay as booked, the guest is entitled to a refund; when a guest cancels, any fee should reflect reasonable costs and genuinely lost profit. “No refunds” terms are misleading and unlawful.

Since 9 November 2023, unfair contract terms in standard-form consumer or small-business contracts attract civil penalties. Harsh cancellation clauses, excessive change fees, or unilateral change rights risk non-compliance. Maximum penalties for companies can be the greater of $50 million, three times the benefit, or 30% of adjusted turnover. Key terms must be disclosed at or before booking, and businesses must not mislead guests about refund rights or force credits where a refund is due.

Performance metrics and reporting

From 1 July 2024, platforms report short-term accommodation transactions to the ATO, so hosts should reconcile payouts with reported income and keep detailed booking and expense records for at least five years. Treat each confirmed booking as a data point that must tie through to your accounting and tax submissions.

In NSW, track nights booked against the 180-night cap (and Byron Shire’s 60-night limit from 23 September 2024) to avoid breaches and listing restrictions. In Victoria, from 1 January 2025 the 7.5% levy will appear as a separate charge and reduce net revenue—reflect this in pricing, forecasting and performance reporting.

Conclusion

A booking is more than a confirmed stay—it drives compliance counts, platform enforcement, levy collection and tax reporting. Ensure your property is registered where required, display the correct IDs, set clear and lawful terms, and closely track booked nights, payouts and levies to stay compliant and maximise returns.

Thinking about listing your property? Get a free short-term rental income estimate with MadeComfy today.