by Parker McKenzie, The New Daily
The City of Hobart Council’s decision to double the rates on short-stay rentals may soon become standard across Australia, as local, state and federal governments face increasing pressure to solve the housing crisis.
City of Hobart Lord Mayor Anna Reynolds said the decision to double rates for short-stay accommodation during Monday night’s council meeting was a “signal to the market to say this is more like a commercial business”.
“Some of these properties are making $100,000 a year. It might send a signal. It certainly sends a message that the council does have concerns about these dwellings in our residential zones and we think they should be treated differently and regulated differently,” she said.
“Whether it is going to be a complete disincentive I’m not sure, but councils around the country are basically looking for any mechanism they can to have a bit more control over short-stays.”
The City of Hobart Council isn’t the first local government to target accommodation sites like Airbnb with increased rates or taxes. In 2022, Brisbane City Council increased rates by 50 per cent on properties rented out for more than 60 days a year.
Byron Council also legislated a new framework throughout 2022, including a 90-day-a-year cap on short-stay renting, only for the former coalition New South Wales government to intervene to prevent it from being introduced.
With the state’s Independent Planning Commission recently recommending the introduction of a maximum of 60 days of short-stay renting per property in Byron and a change in government, the council is looking to revisit the policy in the near future.
Noosa Council, home to another holiday destination, introduced new laws in February 2022 featuring minimum safety standards and a special rate category for short-stay accommodation after the council found 86 per cent of short-stay operators in the area were based outside the seaside resort area.
Internationally, tax solutions aren’t new. Italy introduced laws in 2017 requiring Airbnb to collect a flat 21 per cent flat-rate tax after it saw a decrease in its already-in-place tourist tax revenue, following a rise in the popularity of short-stay accommodation.
Read the full article at https://thenewdaily.com.au/news/2023/06/21/airbnb-short-stay-tax/
Editor's Note:
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