Let’s get the new short-stay laws right this time
This month we wanted to cover some of the exciting things that are occurring to make Southbank more livable.
Firstly, we have just had the news of the proposed laws to reduce and control the scourge of “short stay accommodation”. Short stays is one of the top issues that people flag when they join Southbank3006 as impacting on livability.
The changes proposed by the state government include two matters that Southbank3006 has argued as essential for any reform package. The Short Stay Levy Bill 2024:
- Introduces a levy of 7.5 per cent, payable by the booking platform where the stay is less than 28 days. This levy isn’t paid if the property the person renting is out on AirBnb or Stayz is their permanent place of residence.
- Includes a broad definition of “occupancy agreement” to minimise avoidance of the laws – something advocated by Southbank3006.
- Enables an owners’ corporation (OC) to include in its rules a collar of a 28-day minimum period for any rental – something that Southbank3006 argued was essential to any regulatory framework.
It is pleasing that the government has recognised that having large numbers of apartments withdrawn from the permanent rental stock has impacts on housing affordability, supply, and homelessness.
It has also recognised the failings of the existing legislation to manage the disruption of permanent residents’ quiet enjoyment by short-stay tenants in many buildings particularly in Southbank and Docklands.
Unfortunately, needing a Special Resolution of all owners, with 75 per cent agreeing to empower an OC to impose a minimum rental period in the OCs rules needs modification if it is to be an effective policy tool for government and to minimise disruption in our high-rise buildings from short-stay guests.
Southbank3006’s position is that the provision of a minimum rental period should:
- Either be included in the “model rules” so that it applies automatically to every OC. This is because the 75 per cent Special Resolution test is virtually impossible to pass especially in larger buildings that cover most of Southbank and Docklands. Having it in the Model Rules would then impose a positive “opt out” decision by Special Resolution for an OC.
- Or the threshold for this rule is reduced to being an “Ordinary Resolution” of the OC in larger buildings known as Tier 1 and Tier 2 buildings as defined in the Owners’ Corporation Act. NSW allows lower thresholds for decisions on specific issues, so this mechanism is not without precedent.
These changes are necessary because experience shows that mobilising 75 per cent of owners to participate in any decision making is extremely difficult especially in larger buildings where most of the short stay disruption occurs. Unless this issue is addressed the objective in the government’s announcement of the changes that it is “giving local communities (especially OCs) the ability to respond to local concerns” potentially is meaningless in many buildings particularly in Southbank and Docklands.
It is important that all residents impacted by short-stay guest behaviour urge these changes to the draft bill. It is better that government gets it right finally.
You can assist by contacting our local Member Nina Taylor who knows that the short-stay issue is an important one for all Southbank residents: [email protected]
Indicate that you support the Short Stay Bill but you want either the inclusion of a minimum rental period rule in the “Model Rules” or a reduced threshold of an ordinary resolution for Tier 1 or Tier 2 buildings so the government can deliver this important social policy agenda item.
A Merry FriendMas – save the date
A Merry FriendMas is returning bigger, brighter, and better on Saturday, December 14.
Southbank’s original and largest community event is returning for its third successive year in 2024. We are pleased that we have secured an important grant from the City of Melbourne as well as key sponsorships from MICM, Melbourne Arts Precinct Corporation (MAPco), and Pineapple/DGTek to run Southbank’s most diverse and inclusive community event.
The team is excited and yes, all your favourites will be back with some new surprise attractions in the works.
Join us at southbank3006.com to become part of the team making Southbank livable. •