LGAT Submission - The Short Stay Levy Bill needs to protect local planning powers

We have submitted a response to the Tasmanian Government on the Short Stay Levy Bill 2025, outlining our support for greater transparency in the short‑stay accommodation sector while raising concerns about how the levy's revenue will be utilised.

We welcome the intention to improve data quality and oversight of short-stay accommodation, and support the decision to place levy administration responsibilities with booking platforms and direct‑booking operators.

However, the proposal to direct levy revenue toward first-home owner grants risks further distorting the housing market. Additionally, the expected moderate revenue from the levy is unlikely to convert entire homes back into long-term residential use. We believe that investing this funding in social and affordable housing would be more impactful, as it directly addresses the urgent need in this area and aligns with the Tasmanian Housing Strategy’s goal of ending homelessness.

We've also emphasised the importance of enhancing councils’ ability to manage the local impacts of short‑stay accommodation. The market varies significantly across Tasmania, so a one-size-fits-all approach will not be effective. Councils need to be able to develop tailored regulatory responses that reflect their communities' unique economic, social and housing conditions. This includes restricting whole‑home short‑stay accommodation in areas facing housing shortages, and continuing the use of differential rating to ensure fairness between commercial operators and residential ratepayers.

Our submission also highlights ongoing issues with the enforcement of the Short Stay Accommodation Act 2019. Councils continue to face significant data gaps and limited State enforcement, making it difficult to assess the impact of short‑stay accommodation on housing supply accurately. We are urging the Government to strengthen compliance, improve data sharing, and work more closely with councils.

The sector remains committed to working collaboratively with the Tasmanian Government to develop a balanced and effective framework that supports Tasmania’s visitor economy while protecting the housing needs of our communities.

Short‑stay accommodation: What the latest indicators show

Recent data released by TasCOSS reinforces the scale of the challenge. New short-stay accommodation indicators have been added to Tasmania’s State of Housing Dashboard, which show a 24% rise in non‑primary residences used for visitor accommodation since 2019. There are almost 4,000 homes on the short-stay market, with some communities experiencing higher concentrations than others.