As ZDNet Australia exclusively reported in early December, .au Domain Administration (auDA) is considering whether this practice -- also known as "domain monetisation" should be considered legitimate for the purposes of registering Australian domain names.
In a statement, auDA chief executive Chris Disspain said his body was "not opposed to domain monetisation per se", but would like to know "whether the Internet-using public would like this practice to take place under the .au domain name system.
Disspain said domain monetisation was widespread overseas.
"The practice is becoming particularly common amongst registrants of .com and .net domain names," he said. "This is because unlike .au domain names there are no policy rules limiting the number and type of .com and .net domain names a single registrant can register.
In Australia, organisations must have a "close and substantial" connection with a domain name before they can register it for use -- for example a registered business name or trademark.
The regulator has issued a discussion paper on the subject, which is available online. Public comment must be received no later than April 21.