Capes councils signal ratings ramp up for short-stay accommodation sector

The City of Busselton have fired the first shot in efforts to claw back costs from the region’s rampant short-stay sector, with the Shire of Augusta-Margaret River eyeing up its options as well.

Busselton councillors flagged a potential 15.12 per cent ratings increase for Airbnb-style operators in its looming annual budget as part of efforts to recoup lost income, and the need for compliance and enforcement efforts as a result of State Government reforms to the sector.

While the Augusta-Margaret River Shire has a differential category for tourism sites, they are lumped in with commercial and industrial properties and not targeted for any specific major increases this year.

However, recommendations from the shire’s in-house revenue diversification team included shelling out up to $50,000 for a consultant to review ratings categories for future years that could augur higher rates for Airbnb-style listings.

Busselton chief executive Tony Nottle said the city was facing the same cost pressures as residents, with an average 7 per cent rates increase proposed for other categories including residential homes.

The move to increase rates on short stays was to counteract lost income from the State Government’s new registry system which would see the city lose fees for registration.

The ratings move had the support of Margaret River-Busselton Tourism Association chief Sharna Kearney.

“While holiday homes make up an important part of our region’s accommodation offering, they need to be carefully regulated to ensure that impacts on our community are managed, visitors have a high quality experience, and that competition with traditional accommodation providers is fair,” she told the Times.

“Local governments play a critical role in regulating holiday homes, in particular, ensuring that impacts on our community are managed.

“In the past, the city has been able to raise funds to contribute to the cost of managing holiday homes through their own registration scheme, but this will now be replaced by a Statewide register.”

Ms Kearney said money from the higher rates would go back into managing the sector and supporting tourism, marketing, and economic development.

Acting Augusta-Margaret River chief Nick Logan said his shire already received a one-off fee when owners submitted development applications for holiday homes.

The proposed Busselton residential rates increase included a 1 per cent tithe for future community facilities, with the city recently confirming plans to build a new leisure centre.