Tasmanian councils feel pinch as Airbnb floats short stay tax

A similar tax in Tasmania could reap millions of dollars in extra revenue for councils.

Airbnb Australia and New Zealand head of public policy Brent Thomas, said smaller holiday town councils can have their budgets stretched by tourist numbers, with an extra charge directing money back into those councils a way to help maintain the supporting infrastructure.

Dr Katrena Stephenson, chief executive officer of the Local Government Association of Tasmania, said there are councils facing similar pressures locally.

“LGAT is aware that some councils are feeling the pressure of increased tourism visitation on infrastructure – both that used primarily by visitors but also that used by local residents,” she said.

Dr Stephenson added that to date there had been no conversation in the sector about a broad tourism tax.

“We also know that in some small communities tourism has boosted the local economy and while councils don’t always receive financial dividends directly, they benefit from improved overall community outcomes in terms of relieving pressure on other service demands.

“While LGAT supports a shared investment in tourism infrastructure, we don’t have a particular view as to the best mechanism.”

Minister for Housing and Planning, Roger Jaensch shot down the idea of any new charges.

“As we stated before the March election, the Hodgman Liberal Government will not introduce any new taxes or levies.” he said.

The fee floated by Airbnb in Queensland would come as an additional charge for those booking the accommodation, rather than a tax or levy tacked onto a rates bill like those already implemented by some councils on Queensland’s Sunshine Coast, but was dismissed by the state government, opposition, and tourism industry council.

This comes as the Tasmanian Legislative Council continues its inquiry into the growth of short stay accommodation, its impact on residential housing and tourism, and related regulatory issues.

The inquiry has heard the sector is in need of better regulatory management to prevent rental and housing pressures in pockets of Tasmania.

Public hearings have been announced for Launceston and Burnie next week.

A draft Short Stay Accommodation Bill addressing compliance concerns in the sector was opened for public comment by the Tasmanian government this week.

Airbnb, in their submission to the Legislative Council inquiry, outlined the many instances of taxes they collect in jurisdictions worldwide.

They also stated they were “actively seeking” to expand their tax collection and remittance program globally.

Many of those local programs send money back into critical services, their submissions states, though they also seek to direct revenue to new initiatives.

In Portland, Chicago, and Los Angeles, these kind of taxes on short-term rentals are put towards affordable housing and homelessness programs.

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