Noosa and Its Short Term Accommodation (STA) History
Background History
While there have always been holiday houses in Noosa past access and use was different to the way it is now. Access was often limited to family and friends, and use often for minimum periods of two weeks or more. The advent of online booking platforms changed tourist behaviours and the way holiday houses are perceived by investors, home owners, and would-be investors. Air BNB entered Australia in 2012 and has been followed by many other online holiday booking agencies dealing increasingly with whole home investment properties. Australia’s taxation laws have made it attractive and profitable for investors to use real estate as a way to generate income and capital growth.
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In 2021 Noosa had one of the highest rates of penetration for Airbnb listings anywhere in Australia (Lucid Economics). Noosa Council has estimated that there are around 5,200 active private short term lets in Noosa, with around 4,000 of these outside designated tourist zones
The New Noosa Plan and the 2020 Local Government Elections
In Noosa by late in the second decade of the 21st century it had become clear to many that the growth of whole home short-term letting (STL) in residential zones was having negative effects on long term residents and if left unchecked it threatened to change the nature of the Noosa community. In the lead up to developing a new Noosa Plan the Wellington Council proposed zoning changes coupled with a new local law. A first draft of the new town plan that proposed extending the tourist zone and drawing arbitrary lines on the map in low density zones delineating areas where STL was to be permitted, was released for public comment in February 2019, and was met with heated community debate. A revised final draft released for public comment in November 2019. The final plan proposed making STL an inconsistent use in all low density zones. Over 1500 submissions were received from the community, many of them addressing the issue of short-term letting (The Consultation Report online: https://www.noosa.qld.gov.au/downloads/file/1899/2019-12-11-sm-agenda-item-1-attachment-1-draft-20191202-noosa-plan-consultation-report). The revised plan was endorsed by Council in December 2019 and the State Government approved the new Noosa Plan for Council adoption in February 2020 subject to conditions, but by then the Council was in caretaker mode. Short-term letting was a major issue of debate and division in the lead up to the 2020 local government elections in Noosa, with some candidates campaigning strongly on opposition to limiting STL in low density zones. The elections saw a new Mayor and three new councillors elected. The new Noosa Plan was one of the first major items to come before the new Council. It was adopted in a 5:2 vote with Councillors Lorentson and Stewart voting against adoption (The 2020 Noosa Plan online: https://www.noosa.qld.gov.au/noosa-plan-2020). In summary, the new Noosa Plan made STL an inconsistent use in Low Density zones and designated Medium Density zones as being preserved ‘predominantly’ for long term residents. Home hosted STL was allowed in low density zones and residents were allowed to vacate their homes to STL for a total of 60 days and on only four consecutive occasions per annum.
Existing Rights
Under State planning law premises that had a history of continuous use for STL before the new plan was adopted had the right to continue operating.
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Superseded Planning Scheme Provisions
While many believed adoption of the new plan would mean no more STL in low density zones in fact there were to be around 300 new STL added in the twelve months after adoption, primarily under the provisions of the State’s Superseded Plan provisions that allowed owners to apply for approval under the old town plan for twelve months after the new plan was adopted. Those approved then have six years from approval to begin STL, so the potential still exists for more STA to be added into the future as some of these are yet to come online.
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Medium Density Zones
Council continued to approve new STL in Medium Density zones for some time. While staff began recommending against approval on the basis that some areas ran the risk of being dominated by STL, it was not until after release of the 2021 AEC report cost benefit analysis of STL and the 2022 Draft Housing Strategy that all councillors questioned the wisdom of continuing to approve STL in Medium Density zones.
Short Stay Letting and Home Hosted Accommodation Local Law
Early in 2019 a draft of a new local law regulating the operation of STL was released for community consultation by the Wellington Council. Community discussion was intense and opinions divided. After more than two years a final, revised version of the local law was adopted unanimously by the Stewart Council in October 2021.
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In a nutshell, the new local law requires all STL properties to register with Council; to designate a person responsible for dealing with complaints within 30 minutes; stipulates provisions that must be made in terms of safety and preserving amenity for neighbouring properties; stipulates rules for signage; and sets up a 24 hour/seven day hotline for resident complaints. (Short Stay Letting and Home Hosted Accommodation Local Law Online)
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Implementation of the local law has been slow. Although registration was initially, by January 2023, over 12 months after adoption of the local law only 1848 of a potential 4000 STL were registered and approved for operation 50 had been refused and 34 withdrawn (Source). In a Catch 22 situation, while the hotline was up and running from the outset residents found that if a property was not registered a complaint could not be made. In mid 2023 following a review of the local law Council voted to increase staffing levels to expedite the registration and compliance process.