Mount Gambier Council Rejects Higher Rates for Short-Stay Rentals

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Arabic version: مجلس مدينة ماونت غامبيير يرفض زيادة الرسوم على الإيجارات القصيرة الأجل

The City of Mount Gambier has reversed its decision to impose higher council rates on short-stay rentals, a move that has been positively received by property owners. The council had initially planned to reclassify these rentals, commonly listed on platforms like Airbnb, as commercial properties, which would have resulted in a significant rate increase.

According to ABC News, the proposed change would have raised commercial rates to 270 percent of residential property rates. However, after community backlash, council members voted against the increase, emphasizing their support for tourism in the region.

Property owner Jenny Bickley criticized the council’s rationale for the proposed rate hike, arguing that the justifications were unconvincing. She noted that short-stay rentals typically generate less wear on local resources compared to permanent residences, which can house multiple tenants.

The council’s decision comes as the South East region grapples with a rental vacancy rate below one percent. Housing advocate Shane Maddocks highlighted the need for a broader approach to address the local housing crisis, suggesting that increasing housing supply is essential, rather than penalizing short-stay rental owners.

Despite the rejection of the rate increase, the council plans to implement other rate reforms, including a rise in primary production rates to 270 percent of residential rates, which would be phased in across five years. Meanwhile, commercial rates would fall from 270 percent of residential rates to 200 percent in the same time period. The City of Mount Gambier aims to encourage housing development while balancing the needs of its tourism sector.

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