Published on
Image description

Airbnb lists more than 1000 properties across Phillip Island. Operators say the council's short stay registration fee makes it difficult for them to compete.

By Catherine Watson

 

BASS Coast Shire Council is holding firm on a near-doubling of its short-stay registration fee despite a backlash from local operators.

 

The annual fee has risen from $324 to $600 for properties with up to five bedrooms, an increase of 85 per cent. A new tier of $900 has been introduced for properties with more than five bedrooms.

 

The fee increase dominated question time at Wednesday’s council meeting, with several operators asking how the council could justify increases so far above the rise in CPI.

Cr Meg Edwards’ 20-part notice of motion calling for a review of the scheme lapsed after she failed to find a seconder among her fellow councillors.

 

Almost 400 holiday-home owners have now signed a petition calling for the increase to be reversed. It will be presented to the October council meeting.

 

Destination Phillip Island and the Inverloch Tourism Association are also calling on the council to wind back the increase in line with CPI. The Post understands Airbnb is also likely to become involved in the campaign.

 

Some property owners say the sharp increase has prompted them to consider withdrawing their properties from the holiday-rental market.

 

The council says that so far 773 owners have registered their properties this year, and it has no evidence that the number of short-stay properties available for rent has declined. 


“How does council justify a registration fee $300 to $900 higher than any other municipality and still hope to encourage tourism to Bass Coast?”
Glenn Morris, president of the Inverloch Tourism Association

Several holiday-home owners questioned why they had not been consulted about the fee increases.

 

The council pointed to the consultation process for its 2026–27 fees and charges, which were exhibited from April 16 to May 8. 

 

Four public engagement sessions were held in Wonthaggi, Coronet Bay, Newhaven and online, while budget documents were made available through Engage Bass Coast, customer service centres, social media and local newspapers.


The council also rejected the suggestion that the increase should simply have followed CPI.

 

It said the new fee reflected a review of the costs of operating the program over two years, including 2900 compliance referrals, as well as benchmarking against fees charged by other councils.

 

The council said its aim was to balance support for the visitor economy with managing the amenity impacts of short-stay accommodation on permanent residents.

 

“One property generated 37 local law requests, 12 environmental health requests and four SSRA requests.”
Bass Coast Shire Council

Questions were also raised about the new $900 registration fee for properties with more than five bedrooms.

 

The council said larger properties, which can accommodate significant numbers of people, generate more local-law inquiries involving noise, waste, parking and antisocial behaviour, justifying the higher fee tier.

 

As an example, it cited one property that had generated 37 local-law requests, 12 environmental-health requests and four SSRA requests.

4 Comments
LEE TIERNEY - 3 weeks ago
If a holiday rental does have 5 bedrooms then you would imagine the fee mentioned would be paid for with basically one booking? No doubt Council has taken those figures into account. For years the experiences and very real grievances of neighbours burdened with the nightmare of ongoing 24x7 holiday rental next door to them has been ignored. Permanent residents have en masse felt very victimized in many instances, as the scenario is simply not akin to having permanent renters living alongside who care and are committed to consideration of neighbours and the overall community long-term. I've known of more than one family who moved house owing to the intolerable ongoing situation of noise levels, invasion of privacy, aggressive confused dogs, and multiple parking scenario along with wanton inconsiderate rubbish issues. Small wonder that Council has so many mentioned follow-up costs generated. Permanent residents have had little consideration and support from councillors in the past, and have felt ongoing stress as victims on endless occasions of powerlessness, with fear and stress of recriminations if they made complaints. We all want holiday makers to enjoy a happy memorable stay, but there certainly are some quieter little hamlets on the Island that are simply not ideal to be burdened with the inevitable nightmare scenarios that continue to occur. Achieving a happy balance from this overall ongoing scenario is indeed a challenge for all concerned. Clustered zones for holiday renters may well be a notion for consideration, but it is a challenging scenario.
Dale Walton - 2 weeks ago
Absolute cash grab by the council, disgusting, I also wrote to council and asked them to justify the increase, the response was:
• Maintaining an accurate register of short stay rental properties (this is cost council introduced itself by creating SSRA, should be covered in Rates)
• Processing registrations and annual renewals (this is cost council introduced itself by creating SSRA, it is automated and should be covered in Rates)
• Monitoring compliance with registration requirements (the cost to do this cannot be justified against the increase)
• Responding to enquiries and complaints from operators, neighbors and visitors (the cost to do this cannot be justified against the increase)
• Ensuring properties meet the standards required under the program (Property Owners take great pride in their property to attract more visitors, council do not contribute here)

Property owners take great care in their property to keep it to a standard for rental and their own stays, the council do not assist here in anyway and where they believe they value add that should come out of the rates revenue
Nathan - 6 days ago
Absolutely not. My rates should not go to subsidising short stay rentals. The opposite should be true. These rentals should be subsidising the local residents who have to deal with the issues that come along with having the influx of tourists. Firstly, These rentals take housing supply away from locals which in turn drive up rents and house prices.

Secondly, $900 (which is the highest tier, many rental owners would be paying less than this) is not extortionate whatsoever. It’s very reasonable considering that these are SECOND HOMES. If you can’t afford it, sell up to an owner occupier, or put a permanent tenant in. Many people in this country are currently struggling to buy their first home, so forgive me for not having much sympathy for those who already multiple having to pay a little bit more.
Nathan - 6 days ago
Absolutely not. My rates should not go to subsidising short stay rentals. The opposite should be true. These rentals should be subsidising the local residents who have to deal with the issues that come along with having the influx of tourists. Firstly, These rentals take housing supply away from locals which in turn drive up rents and house prices.

Secondly, $900 (which is the highest tier, many rental owners would be paying less than this) is not extortionate whatsoever. It’s very reasonable considering that these are SECOND HOMES. If you can’t afford it, sell up to an owner occupier, or put a permanent tenant in. Many people in this country are currently struggling to buy their first home, so forgive me for not having much sympathy for those who already multiple having to pay a little bit more.