Booking Confirmation

A booking confirmation is the written record of a guest’s reservation and the terms that apply to their stay. Under Australian Consumer Law, it forms part of the consumer contract, so pricing, cancellation and refund terms must be clear, accurate and not unfair. Since 9 November 2023, unfair contract terms attract civil penalties, making transparent wording and balanced rights essential.

The confirmation should present the total price upfront, avoiding any misleading drip pricing. It is also a key tax record: the ATO expects short‑term rental hosts to retain booking confirmations, invoices and platform statements for at least five years after lodging their tax return.

Definition and scope

In short‑term rentals, a booking confirmation finalises the agreement between host and guest by recording the reservation details, total cost and applicable terms. It complements your house rules and platform policies, and together these documents make up the standard‑form contract that governs the stay.

Because it forms part of the contract, the confirmation must clearly disclose all amounts payable and the conditions for changes or cancellations. Misleading or incomplete pricing, or unfair terms, can breach the ACL. Keeping confirmations on file also supports your income reporting and GST records where applicable.

Core fields and contents

A robust confirmation itemises the nightly rate and all mandatory fees such as cleaning, platform service charges, taxes or levies, and any security bond, then shows the total price upfront. Clearly set out cancellation and refund rules in plain language, ensuring they are fair and proportionate in line with the ACL and recent enforcement against drip pricing and unfair terms.

Include operational specifics that help compliance and guest experience: the property address, maximum occupants, check‑in and check‑out times, house rules or strata by‑laws, and a 24/7 local contact. In NSW, guest communications should also include your STRA registration number to meet Code of Conduct and registration obligations. If you are GST‑registered, the confirmation or tax invoice must display your ABN, the GST amount and the total payable. For bookings in Victoria from 1 January 2025, show the 7.5% Short Stay Accommodation Levy as a separate line item.

Issuers and timing by channel

On Airbnb, the platform issues the confirmation. Instant Book reservations confirm immediately, while Request to Book must be accepted by the host within 24 hours to confirm. Booking.com confirms instantly at the time of booking with no host approval required, sending the guest their confirmation straight away.

On Stayz (Vrbo), Instant Booking confirms immediately; otherwise, owners or managers typically have up to 24 hours to accept a booking request before it lapses. Understanding these timelines helps you manage calendars, prevent double‑bookings and set guest expectations.

Legal status and compliance

Booking confirmations and T&Cs are standard‑form contracts under the ACL. Since 9 November 2023, unfair contract terms are prohibited and can attract civil penalties, so clauses around cancellations, fees and liability must be balanced, clearly explained and not one‑sided. Pricing and currency must also be disclosed accurately at the time of booking and on confirmations; in November 2023, the Federal Court ordered Airbnb to pay $15 million compensation and a $2 million penalty for misleading currency displays, underscoring this requirement.

From 1 July 2023, short‑term accommodation platforms report transactions to the ATO. Hosts should retain confirmations and related records for five years, declare their rental income, and register for GST if their turnover exceeds the threshold. Good record‑keeping and clear documentation minimise compliance risk.

Operational impacts on availability and revenue

Local caps and levies flow through to confirmed bookings and revenue. In NSW, non‑hosted stays are capped at 180 nights per year in Greater Sydney, and 60 nights in most of Byron Shire from September 2024. Platforms enforce these limits via the STRA Register; exceeding caps can lead to blocked dates, reducing available nights and earnings despite demand.

From 1 January 2025, Victoria’s 7.5% Short Stay Accommodation Levy applies per booking and must be collected and remitted by platforms or operators. Unless you adjust pricing, this levy will decrease net proceeds. Additionally, host cancellations after confirmation can trigger platform penalties such as fees, automatic calendar blocks and negative reviews, which can depress future visibility, occupancy and revenue.

Changes, cancellations, and disputes

Cancellation and change clauses must be transparent and proportionate—blanket “no refunds” or unilateral changes risk being unfair under the ACL, which now carries penalties for such terms. If you cancel or cannot supply the stay, guests are entitled to a refund under consumer guarantees. If a guest cancels, you may retain a reasonable cancellation fee or deposit only to the extent of actual costs or losses disclosed upfront.

Payment disputes can arise even after confirmation. Card schemes generally allow chargebacks up to 120 days from the scheduled check‑in where services were not provided or were cancelled. Maintain dated booking confirmations, any approved changes, and refund records to substantiate your position and resolve disputes efficiently.

Conclusion

A clear, complete booking confirmation protects both guest and host. Present the full price upfront, set fair and readable terms, include required compliance details, and retain records for tax and dispute purposes. Aligning your confirmations with platform processes and local rules helps safeguard availability and maximise revenue.

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