Noosa Residents Against Unregulated Short-Term Accommodation (NRAUSTA) appreciates the opportunity to comment on draft amendment #2 to the Noosa Plan 2020. We focus our response on the Short-Term Accommodation (STA) initiatives in the Amendment, and on Council’s general approach to STAs.
In this regard we note that on one hand the council proposes making STAs an inconsistent use in medium and high-density residential zones, conforming with low density residential zones. NRAUSTA understands that Material Change of Use approval will now be required for a new STA in these zones, delivering a practical ban.
On the other hand, we also note Council’s acknowledgement that ‘existing use rights’ over-ride its Local Law. As a consequence, owners of dwellings in medium and high- density zones with ‘rights’ will be able to seek STA registration, a matter of concern for many residents.
Secondary dwellings not acceptable
We reject the proposal to approve secondary dwellings on existing properties in the Low- density residential zone. The proposal is incompatible with the Council’s stated purpose for
low-density residential zones to “provide housing for permanent residents, in a low rise and
low-density format, with little impact from visitors”. The proposal would increase visitor numbers to residential areas that already have the highest density of STAs in Australia. As
well it contradicts widely expressed Councillor commitments to contain STAs, and to put
residents first. Already there are examples of owners moving into converted garages and
offering their principal residences for STA - adding significantly to traffic and parking
congestion.
NRAUSTA endorses Council’s objective to restrict STA rentals to no more than four times a year for a maximum of 15 days on each occasion. While understanding Council’s intentions to allow permanent residents to offer their principal place of residence for such limited STA rental, NRAUSTA supports the requirement for these owners to meet the same annual approval and re-registration processes as required for unrestricted STAs. It urges Council to take all measures to ensure exemptions granted are not ‘loopholes’ being exploited by absentee investors.
Two car places/rentable bedroom
When it comes to parking we consider that the proposed two or three off-street car parking spaces for a dwelling used for STA is insufficient, and a more appropriate requirement is one off-street car space for each rentable bedroom.
NRAUSTA notes there are more than 3000 of these ‘micro-motels’ (STAs) in Noosa and their penetration rate is more than 10 times the national average (AirBNB figures). Around 1000 of them are still not approved and registered, reflecting the slow rate of implementation of the Local Law frustrating many residents and reflecting poorly on Council administration.
While Noosa once claimed leadership in containing STAs, NRAUSTA notes that other authorities are now moving decisively to achieve reductions in STAs and are far ahead of Noosa’s ‘light touch’ constraints.
In New South Wales an annual 60-day rental cap has been imposed on STAs in all Byron Bay, except its tourist zone. Around 12 more Local Authorities in NSW are expected to follow suit. A State levy on rental income is being considered.
In Victoria the State has imposed a 7.5% levy on gross STA rents.
In Perth there is a 90-day cap on STAs.
Brisbane City Council is set to introduce a permit system restricting a property’s right to function as an Air B n’B unless appropriate planning approval is in place, the body- corporate supports the proposal in multi-unit dwellings, and a property manager is on-site 24/7.
Internationally, a widening list of cities is imposing ever-tightening restrictions on properties offered for Air B n’B and STA. Barcelona’s mayor proposes banning STAs from 2028.
AirBNB and Amendment #2
In Noosa AirBNB is encouraging owners of STAs they manage to petition council on a number of issues including accommodation availability, LTR impacts and caps NRAUSTA’ view on these issues is:
On AirBNB’s own numbers, Noosa already has at least 10 times more STAs than the national average. Residents have expressed their concern at this level of penetration and want fewer STAs. They would not tolerate more.
Noosa Council recognises that in the past many local residents have vacated their homes and leased them to visitors for short periods to offset some of their property costs. With the principal place of residence exemption this practice can continue. NRAUSTA accepts the intention of this exemption but wants Council to take all possible steps to ensure this is not a loophole being exploited by absentee investors.
Constraints on business growth in Noosa are not caused by a lack of tourists, but by the lack of affordable accommodation for essential workers. This impact is evident in the hospitality sector, in Noosa Council’s ability to employ staff, and in the education sector. If this employment trend continues, essential services such as health, banking and policing will be diminished and residential amenity and convenience further impacted.
Tourism is an important contributor to Noosa’s GDP. But tourism’s contribution has been in relative decline for some time as the Council successfully encouraged economic diversification. Today the health and wellness sector is the biggest contributor to local GDP in an economy that has rebounded post-Covid with growth now matching State growth.
Existing rights ‘hurdle’
As previously noted the State’s ‘existing use rights’ planning provision is a significant hurdle for Council to fulfil its stated commitment to restore the Noosa community’s precedence over visitors and investors. NRAUSTA urges council to understand how Brisbane City Council is approaching the ‘lawful rights’ issue as it introduces a permit system. It also urges Council to lobby directly, and through the Local Government Association of Queensland, for a State review of this regulation where it affects the ability of local authorities to protect residential amenity from the impacts of STAs, and the reduced availability of Long-Term Rents.
Election promises raised community expectations of comprehensive initiatives around STAs and implementation of the Short Stay Let Local Law, but we note that formulation of Amendment #2 pre-dated by many months these election undertakings.
To meet these raised expectations and noting that local governments have the authority to make any local law “necessary for the good rule and government of its area”, NRAUSTA urges adoption of a suite of additional provisions in residential and rural zones, including
STA land rates that at least match commercial rates, and/or a bed tax to ensure recovery of the full economic impact of tourists;
cap at 60 the number of nights each STA property can be rented each year;
cap at four the number of bedrooms that can be offered in each STA;
cap at two (including children) the number of occupants in each bedroom;
require one off-street parking for each rentable bedroom; and
for re-registration of each STA that has been the subject of a complaint, a
comprehensive on-site review of its compliance.
None of these provisions would impact Noosa’s overall capacity to accommodate a range of visitors of differing financial means, or those seeking an alternative to commercial accommodation.
Council’s aim should be to not only constrain further STA expansion, but to restore the balance of resident to visitor numbers that existed prior to the advent of AirBNB and STAs. Council’s STA objectives should be detailed in a Statement of Principle for all stakeholders.
Beware Emperor’s new clothes illusion
Determined enforcement of the available laws, and adoption of further comprehensive and stringent responses is essential for the Wilkie Council to avoid community accusations of it adopting an ‘Emperor’s new clothes’ illusion in its approach to STAs.
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