Townsville City Council introduces rates structure for short-term accommodation

Townsville City Council will crackdown on short-term accommodation providers with a new rates system while still allowing owner occupiers to make a little bit of cash on the side. SEE HOW IT WILL IMPACT YOU.

Townsville City Council is putting a new rates structure in place for short-term accommodation.

Townsville City Council will crackdown on short-term accommodation providers with a new rates system while still allowing owner occupiers to make a little bit of cash on the side.

As part of the 2025/26 budget, Townsville City Council has introduced a rating system for short-stay accommodation which will align properties with their commercial nature.

The council hopes this will alleviate pressure on the rental market.

Large accommodation buildings with units that are rented out on websites like Airbnb for a significant portion of the year, like The Oaks on Palmer St or the Quest in North Ward, will be moved to the new structure.

It will apply to short-stay accommodation properties which operate with a commercial focus, and that are listed on short stay websites.

The council will not be changing the rates structure for owner occupiers who rent out a spare bedroom or a granny flat for special events, like Supercars, and list them on short-term rental sites for fewer than 30 days a year.

Apartments in the Quest building on North Ward are on Airbnb.

Acting-Mayor Ann-Maree Greaney said the reason for this was to make it fair and equitable across the board.

“Some of these places operate like hotels and they don’t pay the same rates, so what we’re trying to do is introduce this levy and help alleviate that” Cr Greaney said.

“We’ll reinvest that to, as I mentioned in my budget speech into tourism marketing, which is growing, we’ll see probably an investment of $32m returned to us.”

This will move Townsville in-line with other Queensland councils.

The council says that since 2022, there has been an increase of residential short stay accommodation in Townsville of 28.3 per cent, and those properties make up 27 per cent of the market.

Each short-stay accommodation generates more than $38,000 in annual revenue.

“In most cases these larger properties are often indistinguishable from traditional hotels in how they operate,” Cr Greaney said.

“So it’s fair that they contribute similarly to the services they benefit from, including tourism promotion and infrastructure.”

Cr Greaney said this was not about penalising “responsible short-stay operators.

”It’s about recognising the valuable role they play while ensuring the system is equitable and supports broader community goals, including housing availability, and liveability,” Cr Greaney said.

“Reinvesting in tourism creates a ripple effect across our local economy benefiting accommodation providers, hospitality venues, tour operators, and the broader community.”

After July 1, properties which have confirmed bookings or are advertised on short-stay accommodation provider websites will come under the new category if they are offered, available or used for more than 30 days in the financial year.

Originally published as Townsville City Council introduces rates structure for short-term accommodation