A local member of state parliament and short-term accommodation owners have lambasted Sunshine Coast Council’s decision to significantly raise rates.
But council says the measure should help address the region’s rental crisis.
Owners of almost 6000 properties that offer short-term holiday rental accommodation have been slugged significant increases in rates, including for low-rise units (from $1896 to $2813), high-rise units (from $2964 to $4315) and houses ($2087 to $2813).
Member for Maroochydore Fiona Simpson said it was a blow to investors and the local tourism industry.
“I’ve had calls from (short-term accommodation) owners and resident managers who are stunned, as they did not know they were facing nearly a doubling of their rates for no extra benefit,” she said.
“This is a tourism tax. This will hurt rather than help. It’s a cash grab.”
But council expected it would help address the Sunshine Coast’s rental woes.
A spokesperson said it should lead to more long-term rentals becoming available for people who need them.
“One of the greatest challenges both the community and council has grappled with recently is the many previous long-term rental homes and units now being used for short-stay accommodation,” they said.
“This has contributed to the longer-term rental shortage on the Sunshine Coast.
“(Short-term accommodation) property owners have the option to return their properties to the longer-term rental market and reduce their rates should they choose to.”
Ms Simpson believed the initiative would have little impact on addressing the region’s housing crisis.
“The answer to the rental shortage isn’t to close down the mainstream tourism accommodation sector,” she said.
“It doesn’t fix the homelessness problem or create new general rentals for all those people who need a home. What it does do is it whacks up 40 to 60 per cent of new tax on accommodation in tourism areas.”
The Sunshine Coast is in the grip of a housing crisis, with many prospective renters and renters battling to find and retain a place to live.
Statistics from real estate appraiser PropTrack revealed the extent of the situation earlier this year, when senior economist Eleanor Creagh said an influx of people to the region and limited housing had caused significant price rises and low vacancy rates.
“With the rental vacancy rate sitting at 1.48 per cent, conditions remain tight and it’s difficult for many to find rentals,” she said.
Graham Howlett, a Brisbane resident who owns a short-term rental at Moffat Beach, said the move would hurt tourism and have flow-on effects.
“There are around 6000 short-term holiday rentals available on the Sunshine Coast, which are helping to bring in significant tourism dollars to the region, yet the council sees fit to penalise these people,” he said.
“Tourism spend in the region benefits the entire local community. If people have nowhere to stay for their holidays, you have much less tourism spend on the Coast, therefore less jobs, less security etcetera.”
Gary Turner, the owner of a unit at a resort at Golden Beach, said he faced a 34 per cent rates increase.
“The council approved that development for short-term accommodation (but) now they … seek to penalise me,” he said.
“In addition, I ask what they are going to do with this windfall in extra rates? Are they going to use it to build accommodation?”
Another local ratepayer, Pip Willis, has started a petition to stop councils from increasing rates for property owners who offer short-term accommodation.
“I heard a couple in Mudjimba would not be going ahead with Airbnb and not hire a housekeeper to manage their place while they go interstate, because the additional rates were unaffordable,” she said.
“So, their house will sit empty for this period.
“Council, with this punitive cost, has stifled employment, housekeeper, laundry, cleaning, gardening and the influx of tourism.”
The council spokesperson said the decision to increase rates was in line with other locations.
“To remain consistent with other South-East Queensland tourism destinations, short-stay accommodation properties have been reviewed and benchmarked, resulting in rate increases comparable to those of other local government organisations,” they said.
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