Noosa Council to introduce new rating category for holiday homes and units

A shake-up to rates at a tourist hotspot will leave some holiday home and unit owners paying thousands of dollars more each year. See what the changes mean for ratepayers.

Holiday homeowners at a Sunshine Coast tourism hotspot are facing rates increases of more than $10,000 to address the impacts visitors have on the region.

Noosa Council on Wednesday voted in favour of introducing a new rates category for holiday homes and units as part of its 2021-22 budget.

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.

But Noosa Holiday Rentals’ business development consultant Bruce Gregory said the increases would range from “thousands of dollars to up to $16,000”.

Noosa Holiday Rentals' Bruce Gregory said the new rating category meant some homeowners would have a rates increase of up to $16,000.

Mayor Clare Stewart said the new rating category, similar to what Sunshine and Gold Coast councils had in place, aimed to address the impacts guests had on services.

She said tourists placed increased pressure on local infrastructure, waste services, roads and parking.

Mr Gregory said it was a “kick in the guts” for the industry amid ongoing restrictions and the current lockdown.

Mr Gregory, who manages 130 Noosa short stay properties, rejected the council’s justification that the properties placed a higher demand on services.

Noosa Mayor Clare Stewart has delivered her second budget once again under tough Covid Conditions.

“Holiday rental homes aren’t occupied 100 per cent of the year, some of them are only occupied for half of the year, so the true cost to council’s infrastructure is far less,” he said.

“It’s quite disappointing they’ve taken this stance.”

Stayz corporate affairs director Eacham Curry said the move would force holiday homes out of the market or drive up costs of accommodation.

A council report on submissions received about the rates increase said those from short stay property owners objected to the move but that residents supported it.

The new rates category will not apply to residents who rent out their properties for less than 60 days a year or for those who home-host up to 90 days a year.

“We acknowledge and appreciate that many of our residents rely on this supplementary income and we’re determined to ensure they don’t bear the brunt of any increased charges,” Ms Stewart said.

The council will also appoint a full-time short stay local laws officer to help ensure guests comply with accommodation guidelines.

Originally published as Noosa Council to introduce new rating category for holiday homes and units