BCC raising rates by 50% on short-stay properties

Say the rates are 2K pa. A 50% increase makes it 3K pa. Might still be worthwhile having short term rental, especially if the landlord raises the rent a little to absorb the extra rates.

 

BCC short term rental properties are predominantly apartments (I would say 99% by looking at Airbnb) that nobody wants to rent long term anyways. At best, this legislation would drive up the cost of holidaying in Brisbane which would benefit no one.

 

I like how how they say "or return it to the rental market"... where they will promptly slug you an extra 20% anyhow, because of the extra slug BCC puts on investment property rates Either way, BCC wins.

Rates up +5% in BCC across the board also...

Another example where it appears they are trying to help out a segment of the community (those struggling for affordable rental accommodation), when it really is just set to help themselves. They're not actually doing anything to address the underlying problems they could fix, such as changing zoning and opening up more development options. For instance, allow splits of 300sqm, effectively doubling the amount of developable land in BNE.

 

LOL this won't happen at all changing zoning. You can dream - that is all that is.

 

Yup.. and the BCC is nearly entirely responsible for unaffordable rental and property in general Brisbane. They could fix it so simply... Does not really matter what Federal or State Governments do, if the knuckle-draggers in BCC can't see what opportunities it would open up. They would actually make more money and be able to better balance their budgets.

 

I think for most owners who have properties on airbnb the rate rise from 2k to 3k won't make them put their properties back on the long term rental market. $1000 would be less than a weeks earnings and it's a tax deduction anyway. Raise the nightly price by $5/night and you have more than covered the rise in rates. In Canberra we pay ridiculously high land tax and rates (annual holding costs for a 2bed, 2bath apartment are around $11,500 including BC, rates, land tax, water, PM fees) and it hasn't put off owners listing on airbnb. Also a large % of apartments on airbnb are people's "city pad" - retirees who live on the coast but come to the city regularly to visit friends/relatives, entertainment - the airbnb money they pick up in the gaps helps with costs so it won't deter them either. It is not the answer to get more long term rentals available in the city! But may grab a positive headline for BCC so it looks like they are doing something.

 

Any idea if the BCC actually use their planning powers to control short stay lets? Aka, do their job?

 

Greed. Taking a cut. Ditto Gold Coast which has a short stay license fee.

What we need is a national approach to a bed tax which works across much of Europe. Impose a bed tax so all tourism support is funded by nightly levies by the users / property owners which is borne by the users. Self regulating and not greed based. In many places in europe the bed tax also gives access to things like resident parking permits, fare discounts and entry to limited places etc. Just this morning I saw QLD are consider a daily fee imposed on operators. This just erodes their business. It seems the aussie way is to tax enterprise out of existence. Once we saw govt as a service which assisted to make things happen. Now it seems every single agency is wanting to make a profit. How little IF ANYTHING does BCC give gack ? They dont. They just want to find more and more revenue.

The market will find a supply of property if there is demand. Look at Meriton. They have a dedicated business unit for short stays.
Brisbane Hotels & Accommodation | Meriton Suites

 

Small tax tweaks like these won't really change the availability of term rentals much. If they want to get really serious about it offer much bigger tax discounts to long term rentals and severely restrict tourist rentals outright.
e.g. in Barcelona .
50% discount on long term let rental income for income tax (this is huge).
Issue of new tourist licences stopped 7 years ago. Widespread hatred of Airbnb here.

Land tax in Australia could be a way to incentives long term rentals. Give long term rentals a discount and make short term places pay double to make up the difference.

Most of Byron Bay restricted to 90 days a year tourist rentals now. My friend there with a few properties not happy but he's changed one to long term rental.

 

How does Canberra’s increase property tax on IPs work if you’re occasionally renting out your PPOR on Airbnb (when you’re away travelling for example)? This is something I’m thinking of doing - does it just get slapped on pro rata? Or do you only cop it if you rent it out for a minimum number of nights per year?

 

ACTs land tax is unlike other states. Its akin to a services levy on owners eg more like rates. Its paid each quarter rather than imnposed on owners at one night of the year. There is a requirement to notify and maintain details of the use if you MOVE out or back in. Secondary dwellings can also be liable so the whole property is not exempt

Land tax

 

Does the rate hike apply if it’s just you renting out a part of your ppor?