Brisbane short-term accommodation providers are collectively paying hundreds of thousands of dollars in extra rates following a new surcharge from the city council.
Key points:
- Brisbane short-stay providers paid an annualised increase of $700,000 on their rates in 2022-23
- Council has launched a task force into the sector; the state government has its own review underway
- Airbnb proposes visitor levies be introduced instead of rate increases on property owners
It comes as a Queensland government-commissioned probe into short-stay accommodation nears completion, which could lead to reforms in the Sunshine State.
Brisbane City Council announced in its recent budget that it would raise its rates surcharge on short-stay properties from 50 to 65 per cent.
Since introducing the charge last year, council has identified 780 properties that have been put onto the transitionary accommodation rating category.
It says the surcharge saw property owners pay an annualised increase on their rates of about $700,000 in the 2022-23 financial year.
The properties have been progressively identified since the charge was introduced, meaning council's actual revenue was less than the $700,000 annualised amount.
Councillor Fiona Cunningham, who is leading a task force looking into short-stay accommodation in the city, said "everything's on the table" as it considered further reforms.
She indicated legislative changes would be needed from the state government.
"The Planning Act is difficult for local governments to enforce when it comes to the short-stay accommodation sector," she said.
"Additionally, the Body Corporate and Community Management Act makes it difficult for bodies corporate to regulate different types of residential use.
"Thankfully the state government has indicated an interest in reform, which is a positive step."
Ms Cunningham said the council's task force wanted to hear from property owners, body corporates and short-stay accommodation companies, such as Airbnb.
"We're determined to strike a better balance between our city's need to have short-stay accommodation available during major events and limiting the impacts on residents," she said.
"We're not alone in this challenge. Jurisdictions around Australia and around the world are grappling with this very same issue."
Airbnb's head of public policy for Australia and New Zealand, Michael Crosby, said they welcomed the opportunity to work with the council towards "commonsense regulatory initiatives".
Mr Crosby said rate increases could make living costs tougher for Queenslanders, as he advocated for a visitor levy to instead be introduced that would be paid for by guests.
"Visitor levies are a fair and sustainable way to raise revenue for local communities, especially in areas of high tourism, as they broaden the revenue base without imposing an additional burden on local ratepayers or businesses," he said.
"This could also be used to fund housing or community projects."
Airbnb is also pushing for a statewide framework that would govern the short-term rental sector.
Mr Crosby said such a move would ensure consistency and meant councils would be unlikely to take different approaches.
"This would include a statewide registration scheme and a code of conduct for Queensland."
Lord Mayor Adrian Schrinner last week suggested the task force could lead to changes such as capping the number of days a property can be leased, or outright bans on short-term accommodation in some areas.
A spokesperson for the state's local government and planning department said any changes to local planning schemes that would limit short-term rentals would require state government approval.
The government announced a probe into short-stay accommodation in October and was due to be done by the end of last year, but it will now be completed by the middle of this year.
The department spokesperson said the government would consider further actions, such as possible reforms, once the report was completed.
"The department has partnered with [the University of Queensland] as an independent body to undertake an analysis into the positive and negative impacts on housing affordability and availability and communities," they said.
"It will also explore how the impact varies across different regions – for example, the impact in Noosa is likely to be different to the impact in Brisbane.
"Any reforms the Queensland government may seek to take will involve consultation with communities, industry and councils."
Loading