Housing and Planning – Short-Stay Accommodation

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Helen Burnet MP
September 23, 2024

Ms BURNET – I want to just talk about short‑stay accommodation. It’s clear that short‑stay accommodation is driving down vacancy rates across the state and it’s making it hard for Tasmanians to afford housing. You promised to introduce a 5 per cent levy on short‑stay accommodations. Could you explain to the committee the progress that’s been made in introducing this? And is it just about revenue‑raising or is it a real approach to try and solve some of the housing issues?

Mr ELLIS – This is a matter for the Minister for Finance, but I can probably provide a broad update for you. We’re working to deliver that commitment. It’s an important part of our commitment. You talk about the revenue. That’s actually really important because the revenue for this is committed towards stamping out stamp duty for first home buyers. We think it delivers on that key process. Ensuring that short‑stay accommodation providers are paying their fair share and also providing cost‑of‑living relief to everyday Tasmanians – young couples, for example – who are looking to buy their first time. That’s a saving of about $28,900 for someone who’s purchasing a $750,000 house, which is part of what you’re eligible for.

As I say, broadly speaking, that matter is a matter for the Minister for Finance, but certainly, we have other planning considerations around short stay.

Ms BURNET – There’s a chronically low vacancy rate in Hobart – it’s 1.1 per cent. In Launceston, it’s 1 per cent, and in Burnie, it’s 0.7 per cent.

Mr ELLIS – Which doesn’t necessarily relate to short stay, but –

Ms BURNET – Yes, but it does have an impact. There are 29 councils, and I have recently done a survey of local government elected representatives. About 50 per cent who responded said that short stay needs to be reined in. That’s what they’re concerned about. I’m wondering what more your government will do to rein in short‑stay accommodation and whole homes?

Mr ELLIS – We’re supporters of short stay and the sharing economy. Interestingly enough, Nick McKim in his first speech to the federal parliament was a huge supporter of short stay, but I suppose those things only last for so long as they’re convenient for the Greens.

Ms BURNET – It’s about whole homes that we’re talking about.

Mr ELLIS – Sure. Tasmania’s got one of the clearest planning policies in Australia on short‑stay accommodation. We have flexible planning rules that are supported by data collection to inform local policy.

Our approach is fair. It’s consistent. It’s simple to administer and easier to police than jurisdictions which place a limit, for example, on the number of nights the short‑stay accommodation can operate a year. Any council that’s got a case to support further limit on short‑stay accommodation can apply local restrictions with the approval of the Independent Tasmanian Planning Commission, but in support of our balanced planning –

Ms BURNET – It doesn’t work very well, minister. I’ve been there. It doesn’t work very well at all to rein it in.

Mr ELLIS – Perhaps you might like to elaborate in terms of why your council fell short, Ms Burnet.

Ms BURNET – We were told one thing by the minister and when we took it to the commission, it wasn’t a matter of falling short at Hobart council, it was a matter of, ‘Well, actually, those rules don’t apply’.

Mr ELLIS – Without further detail, I can’t really comment, but certainly, we support our balanced planning regulations. We’ll also seek to incentivise the return of some properties to the longer‑term rental market to boost housing supply. Through our 2030 Strong Plan, we’re extending land tax exemptions for those that switch from short‑stay accommodation to longer‑term rental.

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