Warrnambool council drops plan to charge Airbnb more in rates

Warrnambool City councillors will meet on Monday night to vote on the budget and council plan as well as its rate and revenue plan which had included a move to charge short-term accommodation providers a commercial rate.

The plan - which would see the average Airbnb property pay $2698 instead of $1499 - was welcomed by motels but prompted backlash from owners and short-term accommodation website Stayz.

The council received 22 submissions from the community, some in support of the idea but many against.

The idea has now been removed from the rating and revenue plan which is expected to be adopted on Monday, but it does leave the door open for the issue to be revisited in the future.

But just what any future proposal may look like, and when it may be revisited, is unknown.

"Given the complex natural of this issue and a lack of a statewide approach, it is proposed that short-term accommodation be removed from the definition of the commercial property rating differential," the council agenda says.

"Council will continue to consider the most efficient and effective treatment of short-term accommodation properties to ensure rating equity across all properties within the municipality.

"Council will consider the feedback received through the community consultation process in any future proposal."

The council had estimated about 75 short-term accommodation properties would attract commercial rates under its proposal. "This means owners of these properties would pay an average rates bill of $2698 instead of $1499," the council had said.

That move had been welcomed by motel operators who said it was "a step in the right direction" and would help to level the playing field.

They pointed out that commercial accommodation operators had to pay for fees other holiday rental businesses such as Airbnbs didn't such as kitchen inspections and health and safety compliance.

Holiday rental website, which lists 87 properties in Warrnambool, Stayz labelled the council's policy as "misguided" and said it would drive up the cost of tourist accommodation.

It called for the council to push for statewide regulation of the industry that would keep any changes consistent across council boundaries.

Owners also questioned the timing of applying the charge to a sector already hard-it by the COVID-19 pandemic and was still struggling to recover under repeated statewide lockdowns.