Greens Propose Council Tax, Regulation on Holiday Lets

Australian Greens

Greens NSW MPs Jenny Leong and Tamara Smith have today urged the NSW government to tax short-term holiday lets in a joint submissionto the NSW government's review into short-term rental accommodation.

The Greens have also called for new powers for local Councils to regulate short-term rental accommodation by enforcing a bed tax, requiring owners of dwellings used in this way to register as a business, and prohibiting short-term holiday lets in LGAs with low rental vacancy rates.

A number of reforms proposed by the Greens have also been endorsed by the Independent Planning Commission.

In Byron Shire, which Ms Smith represents in the NSW Parliament, reports suggest that 25% of housing stock is short-term rental accommodation. Byron Shire also has more rough sleepers than any other LGA in New South Wales.

Meanwhile, approximately 35,000 dwellings statewide are being used for non-hosted short-term rental accommodation year-round.

The Greens are hopeful the NSW Labor Government's review signals openness to reforms that will see these dwellings shifted to the long-term rental market where they can provide the stable, long-term housing our communities need.

Tamara Smith MP, Member for Ballina and NSW Greens Disaster Relief Spokesperson, said,"Short-term holiday lets are tearing apart the social fabric of the region. With one in four homes being short-term rentals in Byron Shire, it's no wonder we have a housing crisis."

"Our submission urges the government to return planning powers to the community by empowering local governments. Short-term rental accommodation affects different areas in different ways, and a one-size fits all approach won't work."

"In my community, the massive overrepresentation of short-term holiday lets is driving up housing prices and displacing essential workers like nurses, teachers and hospitality staff. We've also seen the devastating floods of 2022 render thousands of homes in our region uninhabitable, which is why the Greens are also proposing that short-term holiday lets are used as emergency accommodation during natural disasters. If you have homes sitting empty during a flood, you should use them," Ms Smith said.

"I know locals have been expressing their outrage at this system for decades now, and we hope that NSW Labor will listen to the community's wishes and act to tax and regulate short-term holiday lets. Labor has a chance to usher in transformative reform, and any government serious about addressing the housing crisis would back these measures," Ms Smith concluded.

Jenny Leong MP, Member for Newtown and NSW Greens Housing and Homelessness Spokesperson, said:

"In all the talk of new housing supply, we can't forget about the thousands of existing dwellings statewide that aren't being used for long-term housing. If we're serious about putting a stable and affordable roof over everyone's head, we need to shift these homes back onto the long-term rental market."

"Local councils need to be empowered and resourced to regulate short term rental accommodation in their area, including by imposing a bed tax and those who operate short term rental accommodation to register as the business they are. Revenue raised could then be used to fund local homelessness services and infrastructure to meet community need."

"Homes should be for people - not a vehicle for making profit. Ambitious reforms like changes to the way we regulate short term rental accommodation are urgently needed to give our communities the housing security and affordability they so desperately need."

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