@Audrey695 your information about your booking and refund, as a host in NSW does show that their are some greedy hosts out their and it will depend on the amount of time you gave before cancelling. If you live in Aus most people should understand the situation with now 5 lockdowns that Victorians has experienced. Sadly it is the hosts rules that they have set on their property that they have on airbnb.
I have flexible cancellation with 24hrs, when a guest cancel before the 24hrs they receive their money back into bank account. If less than 24hrs they are charged for 1 night but Airbnb ask would I like to give them the full refund. Which I do give back as, I feel we are all in this Covid together and we are all giving up or going without.
I then communicate with guest and let them know and explain that Airbnb do keep the fee that is added to the booking. (I think this is correct, someone will inform me if this is incorrect on this page).
Lots of guests have started asking what is my cancellation policy which is on my Airbnb page before booking on pending/decline request. My advice to other people who ask me is to check cancellation and this is the same with hotels, motels and other booking platforms.