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Can strata ban short term holiday letting?

Yes. Under the new NSW strata laws, the owners corporation has the right to ban the use of Airbnb in the building if the owner does not live in the unit and at least 75% of the owners agree to pass the appropriate by-laws.

https://www.fairtrading.nsw.gov.au/news-and-updates/news/new-short-term-holiday-letting-regulations