Warrnambool Council introduces new law to charge Airbnb an annual fee of $400

Beachside holiday trips in Warrnambool could cost visitors more this year. Find out why.

Charging hundreds of dollars to Airbnb hosts in the Warrnambool area will cost locals and tourists alike, a spokeswoman from the company has said after council introduced the new fee.

Warrnambool Airbnb providers will be taxed an annual fee of $400 to run their properties as part of the new short stay accommodation law made by council on Monday.

Mayor Debbie Arnott and councillors Max Taylor, Otha Akoch and Angie Paspaliaris supported the decision, while Ben Blaine voted against.

Two councillors — Vicki Jellie and Richard Ziegeler — declared a conflict of interest.

Warrnambool Airbnb property owner Casey O’Keefe said it appeared to be an “ad hoc system” to make a “couple of motel owners in town feel better about themselves because they think they are missing out”.

“It’s just a weird system. I don’t know how they are going to police it,” Mr O’Keefe said.

“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.

“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 big days like the Sprintcar Classic where it’s pumping that much money into the economy it’s just crazy,” he said.

Mr O’Keefe believed council were making another level of “bureaucracy” that was not needed.

“I’m sure the local law officers have got better things to do than going to check the bins at Airbnb’s to see if guests have recycled properly or are parking off street,” he said.

“They want us to enforce a code of conduct on the guests and be responsible for their behaviour, which is a bit vague. And to display the code for them to see, which is fine, but Airbnb already have these codes and a no-parties policy.

“And each property has their own house rules. Other things I find interesting is that they want guests to have off street parking for all guests which some properties will struggle with,” he said.

Mr O’Keefe said he was not “opposed” to the fee, but said the local law needed work and it “seems rushed”.

“I don’t think someone renting a room or granny flat to help pay bills should be charged the fee,” he said.

Airbnb Australia and New Zealand country manager Susan Wheeldon said the fee would place “further financial pressure” on everyday locals who shared their homes to help make ends meet.

“As Victorians face sharply rising costs of living and economic uncertainty, now is not the time for making policy changes that will put significant strain on households across Warrnambool,” Ms Wheeldon said.

“It will also hurt guests and the broader community who rely on short-stay accommodation to travel affordably in Warrnambool, including for purposes such as to provide care and support for family members.

“Airbnb supports sustainable and balanced regulation of the short term rental sector, and stands ready to work constructively with the Victorian Government on a statewide framework.”

Ms Wheeldon said hosting Airbnbs helped many Australians stay afloat.

In a recent survey, more than a third of Australian hosts said one of the reasons they hosted was to earn money to help cover the rising cost of living, while almost four in 10 said hosting income helped them stay in their home, Ms Wheeldon said.

“Proposals such as this are often based on the incorrect assumption that properties are being used for short-stay accommodation all year round — when in fact many hosts shared their homes on an ad-hoc basis to help meet their mortgage repayments, pay bills or save for their retirement,” she said.

“Diverse and abundant accommodation is vital for a functioning visitor economy, and necessary for hosting large events.”

Ms Wheeldon said hosting in Warrnambool allowed for the city’s ability to scale up for major events such as the Melbourne to Warrnambool cycling race and provided accommodation for workers who travelled to the area for “critical projects”.

It is estimated the proposed law will generate $20,000 in revenue for council each year.

Mayor Arnott said although it could cost time and effort to get it up and running, it should not be “difficult”.