First WA short-stay rental fine issued under new STRA laws

Western Australia has issued its first fine under the state's new short-term rental laws, marking a milestone for the Short-Term Rental Accommodation (STRA) Act. WA Consumer Protection issued the $2,000 infringement notice after a provider allegedly failed to display a registration number on their advertisement, in relation to a residential property in the Perth metropolitan area. The infringement marks the first enforcement action under WA's STRA laws, which made registration of STRA premises mandatory from January 2025. Under the legislation, STRA providers must register their properties with Consumer Protection and display the registration number in all advertisements -- a measure designed to let prospective guests and the wider community verify that a property is lawfully registered.

EU Directive on empowering consumers for the green transition

From 27 September 2026, new rules under the European Union Directive on Empowering Consumers for the Green Transition will apply to businesses that actively market or sell to consumers in the EU, including international tourism, accommodation, travel, and hospitality operators promoting their services to European customers. The rules focus on improving the reliability of environmental and social claims, helping consumers make better-informed choices and increasing trust in sustainability-related marketing by restricting misleading or generic claims such as 'eco-resort', 'sustainable travel', 'environmentally friendly', 'ecological', or 'carbon friendly'. To remain compliant, businesses will need to ensure relevant claims are supported by credible third-party certification that is publicly available, independently monitored, and used within its intended scope. Claims based on carbon offsetting, such as stating that a business is 'carbon neutral', are prohibited; however, companies may still communicate their investments in environmental initiatives, including carbon credit projects, provided that these are not presented as claims about the lifecycle impact or overall environmental footprint of a product or business.

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Capital City Hotel Performance to August 29th

Preliminary capital city CoStar data for the month to August the 29th shows a mixed picture across Australia's capital cities, with most markets posting occupancy gains and rate growth, while Sydney, Hobart, Darwin, and the Gold Coast recorded softer conditions on one or both metrics.

• Sydney saw a 0.9% decline in occupancy to 83.2%, while ADR increased 4.7% to $291.36.
• Melbourne occupancy rose 1.5% to 75.5% and ADR increased 0.3% to $202.30.
• Brisbane occupancy rose 1.9% to 80.6% and ADR increased 0.7% to $255.95.
• Adelaide occupancy rose 2.8% to 73.4%, and ADR rose 5.8% to $192.97.
• Perth occupancy rose 3.9% to 82.4%, and ADR was up 4.4% to $239.43.
• Hobart occupancy rose 1.8% to 69.3% but ADR fell 1.3% to $173.68.
• Darwin occupancy fell 1.1% to 81.5% but ADR rose 7.1% to $284.87.
• ACT and Canberra occupancy increased 0.9% to 72.4% and ADR was up 1.5% to $183.78.
• Gold Coast occupancy was down 0.4% to 70.2% and ADR up 8.3% to $266.19. 

Household spending continues to rise in July

Household spending continued to build momentum in July, rising 1.1% for the month, according to the latest seasonally adjusted figures released by the ABS. On an annual basis, spending was up 7.0% compared to the same time last year, marking the strongest pace of growth since June 2023. Spending on alcoholic beverages and tobacco rose 0.9% over the month, while hotels, cafes and restaurants recorded a 1.1% increase, pointing to continued strength in hospitality and dining out. A standout category was recreation and culture, which climbed 1.5% in July, which the ABS attributed largely to increased gambling activity, a run of major sporting events, and a lift in cinema attendance.

Hospitality profits rise 3.2% amid wage cost pressures

Australian businesses reported stronger profits and rising wages in the June quarter according to the latest Business Indicators data from the Australian Bureau of Statistics. Company gross operating profits (CGOP) rose 1.8% for the quarter with annual growth reaching 7.4% -- a notable turnaround after profits fell 1.5% in the March quarter. Accommodation and food services performed even more strongly, with CGOP up 3.2% for the quarter, trailing only Mining (+6.8%) and Professional, Scientific and Technical Services (+4.6%) among all industries.

Wages and salaries also rose 1.4% for the quarter, up 5.7% year-on-year, with every industry recording an increase -- a sign of continued upward pressure on labour costs across the board. Accommodation and food services was no exception, recording a 2.4% rise in wages for the quarter. Sales in our industry only marginally rose by 0.5% compared to the previous quarter, seasonally adjusted.

Drop me an email at policy@accommodationaustralia.org or give me a call on 0418 277 919 if you have any national policy issue that you think AA should be following up. If you know an AA member who is not receiving this advocacy report but wants to, then encourage them to email me and we can add them to the distribution list. Back issues of the fortnightly advocacy updates can be found here.

Kind Regards

Jenny Lambert OAM

National Policy Director

Accommodation Australia