Lorne is at breaking point. Two of 29 teachers live in town, and a specialist paramedic is experiencing unstable housing, meaning they can't be stationed here. The community knows this matters - all members of the Lorne Affordable Housing Project working group support a land tax exemption pilot, and respected voices from Committee for Lorne and Friends of Lorne are ready to champion it.
Council has been working closely with the Lorne community on affordable housing solutions.
This proposal - community developed and community backed - offers an innovative way to tackle the cost-of-living crisis, secure housing for key workers, and protect local jobs, keeping vital services and the local economy alive.
The support we seek:
Victorian Government to trial a land tax exemption that encourages a limited number of Lorne properties to be made available for long-term rental for a minimum of 24 months.
Current Lorne housing situation
1,775: Dwellings
1,093 or 62%: Unoccupied dwellings (2021 ABS Census)
172: Long-term rental properties (3-9% of total homes in Lorne)
Very limited number of long term rentals available
465: Number of Airbnb listings - (25% of total homes in Lorne)
$3,720: Average annual land tax bill - some properties pay up to $15,000
$663: Median weekly rent
$22,904: Average Airbnb annual earnings (one in four earned more than the long-term rental annual income of $34,476
Urgent need for key worker accommodation
There is a critical shortage of key worker housing in Lorne.
Many are struggling to find accommodation or living in rental stress.
Affordable accommodation is desperately needed for people who deliver vital services (such as teachers, nurses, retail, hospitality, ambulance, police).
Local real estate agents have observed that increased land tax and holding costs are causing property owners who have offered 10-plus years of affordable long-term rental accommodation to consider selling. This trend threatens housing stability and pushes essential workers out of town.
"As a MICA paramedic with advanced lifesaving skills, I deliver intensive care in emergencies. Without stable housing, I'll be forced to leave, creating a revolving door of less experienced paramedics and impacting community safety." Luke
How this will help
Empty holiday homes can become lifelines for essential workers, with no cash outlay for the government.
This pilot will reimagine housing by transforming idle properties into homes for those who keep our communities running.
The land tax exemption pilot will grow the pool of long-term rental properties for key workers.
Removing land tax for a limited number of eligible property owners, will encourage them to make their properties available for long term rather than short term rental.
Community benefits
Housing local teachers, paramedics, chefs, and other essential workers isn't just about convenience, It's about economic survival. When key workers live locally, schools stay open, businesses thrive, and vital services run smoothly. These workers keep communities functioning and drive productivity, which ripples through the economy, supporting jobs, boosting local spending, and strengthening regional growth.
Estimated cost to build 10 modular homes: $2M (estimated) plus cost of land
Estimated cost of waiving land tax for 20 homes for 12 months: $74,000
