Airbnb providers could be charged a fee if new local law passes council

Warrnambool City Council could become the next municipality to enforce an annual fee for short-term accommodation providers. Find out more.

Owners of Warrnambool AirBnb properties may have to pay an extra $400 a year to run them if a local law is passed by council.

Warrnambool City Council is the most recent council to try to enforce a fee on Airbnb owners, following in the footsteps of Mornington Peninsula Shire, Bass Coast Council and Yarra Ranges Council.

Warrnambool Airbnb property owner Casey O’Keefe feared the fee could add to an accommodation shortage in the region.

He rents his property out through Airbnb as it’s more flexible and allows him to also use the property.

“We’ve just had the Grand Annual Sprintcar Classic in town and everything was booked out — the whole town. It’s brought in over $8m in the economy for the three days,” Mr O’Keefe said.

“But the council seems to still want to charge us an extra $400 a year to run an AirBnb. It just doesn’t make sense to me that they’re charging us extra to help fill people in town on bigs days like the Sprintcar Classic where it’s pumping that much money into the economy. It’s just crazy.”

Casey O'Keefe and his fiancee Caitlin Kavanagh out the front of their airbnb property. Picture: Supplied

The fee proposal was aired at council’s December 2022 meeting, when councillors voted for the community to be consulted about it.

“This short stay accommodation fee will bring Warrnambool into line with other municipalities to address the inequity between registered motels and hotels who pay commercial rates and must meet strict registration requirements and those also providing visitor accommodation through newer platforms such as airbnbs who do not,” Deputy Mayor Max Taylor said at the meeting.

Councillor Vicki Jellie said the fee should be the responsibility of the state so there was no variation different municipalities. Other councillors agreed.

Mornington Peninsula shire properties used for short stay accommodation must be registered annually for $300, or risk a $1000 fine.

Warrnambool councillors will need to vote on a new local law specific to short stay accommodation to implement the fee.

The local law would also introduce a code of conduct for property owners, placing responsibility on them for anti-social behaviour at their properties.

The issue will return to council this month when councillors consider a report containing community feedback.

Airbnb country manager for Australia and New Zealand Susan Wheeldon previously told the Herald Sun Australians faced “sharply rising costs of living and economic uncertainty” and the fee could disadvantage people sharing their homes to “make ends meet” or impact the tourism dollars brought into towns.

If approved, the annual fee would apply for the 2022-2023 financial year.