Noosa Council to introduce new rates category for holiday homeowners

Holiday homeowners at a major tourism hotspot are likely to pay higher rates from next month as the council seeks to claw back funds for increased services.

Noosa Council is expected to introduce a higher rates category for properties rented out for short stay accommodation.

Holiday homeowners at tourist hotspot Noosa are likely to be hit with higher rates than other residents from July.

Noosa councillors on Wednesday doubled down on a decision to create a separate rates category for short stay properties, despite backlash from property owners and the tourist accommodation industry.

Submissions for and against the new rating structure were considered as part of a special meeting about the council's draft budget for 2021-22.

Minimum rates for homes used for short stay accommodation would be $2318 and home hosted accommodation would be $1739.

According to the council, owners of more than 4200 short stay letting properties would have average weekly rates increases of about $14.

Councillor Brian Stockwell asked for clarification on why the council had made the decision, in light of objections from short stay accommodation websites including Stayz.

"One submission, from Stayz, makes sweeping statements that need clarification," Mr Stockwell said.

"It says the council poorly assessed the situation and there's a serious flaw in logic.

Noosa Council Mayor Clare Stewart has proposed a new rates category for short stay letting property owners but Stayz corporate affairs director Eacham Curry has slammed the move as a rushed rates slug.

"Did we have an expert in the field to provide us with these recommendations and analysis?"

Corporate services director Michael Shave said the new rate was intended to better reflect the council services required for short stay properties.

"We engaged an external consultant and they did recommend the proposed structure ... they referenced similar structures in place in other high tourism areas such as the Sunshine and Gold Coasts," he said.

Mr Shave said the Gold Coast's rate was slightly higher and the Sunshine Coast's lower.

Councillor Frank Wilkie said the higher rates category for holiday homes and units was fair.

"We know under the 2016 Census figures that we have an average of two people per average household," he said.

"If we have a property with four to five bedrooms there could be eight to 10 people staying there.

"Each individual title is having a greater impact on council services and it is only fair they're rated proportionately higher."

A report on the submissions said those from short stay property owners objected to the move but that residents and ratepayers supported the increased rate.

Stayz corporate affairs director Eacham Curry said the council had rushed through the "rate hike".

"The tourism sector is only starting to recoup the losses associated with the ongoing Covid-19 pandemic and a rate hike and arbitrary new rules for short-term rental accommodation will only delay the tourism sector's comeback in the well-loved holiday destination," Mr Curry said.

The council is expected to adopt its 2021-22 budget by the end of the month.

Originally published as Holiday homeowners to be hit with higher rates