Cities ease housing needs
Hobart City Council says it is addressing its housing shortage issue by doubling the charges for short-stay accommodation properties.
The council voted eight to three in favour of the change, which will also affect owners of vacant residential land. The increased rates will come into effect in July.
Hobart's Lord Mayor, Anna Reynolds, says the new rate is needed to deal with the impact of long-term rentals being converted into short-stay accommodations.
She says the city has one of the highest concentrations of short-stay properties in Australia, with 9 per cent of the rental market now converted to short stays.
Approximately 700 properties will be affected by the rate increase.
The decision means that owners of short-stay accommodations will pay double the residential rate, equivalent to 10.42 cents for every dollar of assessed annual value (AAV).
For an ordinary home worth around $750,000, the annual rates will amount to $2,049. If the entire property is listed as short-stay accommodation, the rates will increase to $3,612 per year.
Hobart has joined a growing number of municipalities, including Brisbane and Yarra City Council, in implementing strategies to curb the growth of short-stay options such as Airbnb and Stayz.
Brisbane's Lord Mayor, Adrian Schrinner, highlighted that short-stay accommodations contribute to the housing crisis and increase regulatory costs.
In response, Brisbane City Council has introduced higher rates for short-stay owners and plans to establish a Short-Stay Accommodation Taskforce.
While there is mixed support for the rate change, Airbnb's head of public policy, Michael Crosby, expressed concerns about the decision, considering it to be short-sighted.
However, outgoing Tourism Industry Council of Tasmania chief, Luke Martin, acknowledged the merit of the decision, stating that commercial accommodations should pay higher rates.
In another effort to alleviate the housing shortage, Mount Alexander Shire in regional Victoria has amended its local law to allow residents to camp or park a caravan or tiny home on certain properties without a permit.
The decision aims to provide alternative housing options for those struggling to find affordable housing or seeking a lifestyle change.