Shoalhaven housing crisis: Mayor’s holiday home rate hike aborted as council report declares it unviable

A proposal for a ‘Robin Hood tax’ for south coast holiday homeowners - trumpeted as a solution to address a worsening housing crisis - has been scrapped after being deemed ‘too hard’.

Shoalhaven mayor Amanda Findley said the proposal had become too hard, while Salt Care founder Peter Dover said something had to be done.

A proposal for a ‘Robin Hood tax’ for south coast holiday homeowners - trumpeted as the solution for a housing shortage which has hit crisis levels with rising numbers of people becoming homeless - has been scrapped after being placed in the ‘too hard’ basket.

The Shoalhaven region on the state’s south coast has been battling with increasing homeless rates, with 2021 census statistics revealing homelessness figures have risen by more than 20 per cent since 2016. A recently-released Business Illawarra report reveals more than 22,000 homes in the south coast and Illawarra were facing financial stress.

When advocating for the holiday home tax less than 12 months ago, popularly-elected Shoalhaven Greens mayor Amanda Findley spoke of the “remarkable stories of homelessness” across the region, revealing every day phone calls were received about local families having nowhere to live.

As of September, 23,000 homes in the region were empty, prompting a desperate open letter by Ms Findley to the LGA’s non-resident ratepayers asking them to consider renting their property to alleviate the housing crisis.

A Shoalhaven local, Kieran Jones, recently told this publication how he and his family were “essentially homeless” for three years, living in cars, caravan parks and rentals when possible.

Shoalhaven City Council mayor Amanda Findley. Picture: Supplied

To combat the worsening housing crisis, Ms Findley called for a special rate variation to slug the region’s 4500 holiday homeowners with higher rates, with the funds generated to be used to create an affordable housing fund which could be accessed by community providers to purchase land or property.

However, the bold plan has “hit a brick wall”, with a report prepared by council staff determining the proposal as “unrealistic”.

Shoalhaven Council deputy mayor, Paul Ell. Picture: Supplied.

“It couldn’t be considered because it was going to be too hard to ascertain which houses were actually holiday homes,” Ms Findley said. “It would take a lot of personnel power and a lot of money to work out the exact figures.”

Ms Findley said it was “disappointing” to have the idea not go ahead, with the council report noting the proposal was unviable as changes were required to federal and state legislation.

Shoalhaven Liberal deputy mayor, Paul Ell said he never believed rate hike for holiday homes was going to work, labelling it a “stunt”.

“I’m open to supporting real solutions, but I won’t support wasting the resources of our staff on fanciful and out of touch ideas like this,” he said.

Salt Care CEO and founder, Peter Dover. Picture: Tom McGann.

Peter Dover, the owner of not-for-profit Shoalhaven-based homeless shelter Salt Care, said it was saddening to see empty homes while people lived on the street.

“It’s so frustrating because a lot of these homes aren’t even AirBNBs, so they’re just empty boxes sitting there which could really be helping people who need it,” he said.

“We have so many beds and we are at capacity. There are clearly more people out there and it is so frustrating because we are in such a built up area.”

South Coast Labor MP Liza Butler. Picture: Supplied.

Mr Dover was critical of the open letter asking owners of holiday rentals to consider putting their homes on the rental market, with only three people contacting him as the letter directed.

“It didn’t work and so, going from the letter not working to now this affordable housing fund not going anywhere, it’s just saddening seeing no solutions,” he said.

South Coast Labor MP Liza Butler - who supported the holiday home rate rise hike as then-Shoalhaven deputy mayor - said she believed it was always “ambitious”.

“I have always said that council needs to focus on roads, rates, and rubbish,” she said. “Housing policies are the responsibility of state and federal governments.”

As state MP, Ms Butler has been taking on the region’s homeless crisis by providing $250,000 to Salt Care and Safe Water Ulladulla to fund their homelessness services and made an election pledge for a $30m investment for a Build to Rent pilot program on the south coast.