Stayz warns Noosa Council against rates increase for short stay letting homes

The short stay accommodation industry has slammed Noosa’s bid to introduce higher rates for holiday homeowners, similar to Sunshine and Gold Coast councils.

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".

Noosa Council is doubling down on its proposed rates increase for short stay accommodation providers despite backlash from the industry.

Its draft budget includes a new rate category for short stay accommodation, similar to what Sunshine and Gold Coast councils have introduced.

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 median weekly rates increases of about $14.

Mayor Clare Stewart said in some cases the increase would be the cost of about one or two nights' accommodation for these property owners.

Holiday rental website Stayz has slammed the move as a "rushed rates slug on mum and dad holiday homeowners".

Corporate affairs director Eacham Curry said the move would drive up the cost of holiday accommodation and force holiday homeowners to pay retrospective rates bills.

It comes after consultation closed on the council's controversial proposed local laws to regulate the short stay accommodation industry.

Ms Stewart said the new categories better reflected the demand short stay letting properties had on council services and infrastructure.

"We don't believe the burden should be on the mum and dad residential ratepayer or pensioners to subsidise the impact of this activity," she said.

Mr Curry questioned the timing of the change given the uncertain outlook for the tourism sector.

"When implemented in other parts of the world, higher council rates for short term rental accommodation has forced holiday homes from the market, driven up the cost of holiday accommodation and slapped mum and dad holiday homeowners with large retrospective rates bills," Mr Curry said.

"On top of bad policy, council is seeking to rush this through and has only given the community one week to provide feedback on the new rate slug."

Mr Curry said the company was supportive of statewide regulation on the sector.

"Local councils do not have the requisite policy tools or powers to build a lasting regulatory solution for our sector," he said.

"As a result, we urge Noosa Shire Council to refocus their efforts towards advocating for a statewide policy response that will do far more to resolve the key questions about our growing sector."

Ms Stewart said the council had to have a rethink on all aspects of its budget following the Covid-19 pandemic.

"There hasn't been a comprehensive review of our rating categories since de-amalgamation in 2014, so these changes proposed in the budget look to ensure a fair and equitable rating system is implemented for the benefit of all ratepayers" she said.

"Council strongly supports tourism and Noosa is very much open for business."

Residents have until June 7 to have their say on the draft budget.

Originally published as Stayz warns Noosa Council against rates increase for short stay letting homes