Council grilled over steep short-stay administration fees

LOCAL tourism leaders have formally challenged Bass Coast Shire Council over the imposition of steep administration charges to manage short-stay rental accommodation.

The dispute arose after council introduced local laws requiring short-stay accommodation providers to register online. This regulatory framework included a dedicated annual registration fee initially set at $300 and later adjusted up to $600 to $900 depending on bedroom count to cover compliance and amenity management.

Inverloch Tourist Association (ITA) President Glenn Morris formally challenged council regarding the financial justification and administrative overheads of the program.

Morris expressed deep concern that the charges placed an unnecessary financial burden on local operators who are already navigating a challenging economic climate.

He warned that the added financial overheads would disproportionately affect small-scale mum-and-dad operators potentially driving them out of the accommodation market and lowering overall visitor bed availability.

“Extra costs could drive smaller operators out of the market, ultimately reducing visitor beds and harming regional businesses,” claimed Mr Morris.

Council has defended the fee, stating it was necessary to fund compliance, manage local amenity impacts, and cover the cost of one full-time equivalent (FTE) staff member dedicated to administration.

The dispute has highlighted a growing regional divide in regulatory approaches.

Local tourist operators pointed out that neighbouring tourist-centric municipalities like the Surf Coast Shire do not impose registration fees under the Public Health and Wellbeing Act.

However, Bass Coast Council has maintained its stance on the fees arguing that the fee structure was built by benchmarking against a separate, growing group of Victorian municipalities that have successfully implemented similar short-stay local laws.

Regional tourism bodies fear the long-term economic ripple effect, noting that a drop in accommodation availability will directly impact retail, hospitality, and service businesses that depend heavily on weekend and holiday visitors to survive.

As the peak holiday season approaches, the tourism sector is calling for greater transparency regarding how the collected fees will be reinvested into the community.

Critics claim council's strategy has overlooked the complex motivations of holiday home owners. Many use these properties for their own families during parts of the year.

This split usage makes permanent, long-term tenancies legally and practically impossible, defeating the intended purpose of the administrative charge.

Bass Coast was warned it risked losing its competitive edge as a preferred drive-tourism destination. While the council is standing by its benchmarking data, ITA has called for an immediate review of the policy.

They argue that protecting permanent residents should not come at the expense of the tourism industry that sustains the region's livelihood. Property managers have also noted the registration fees lack pro-rata adjustments.

Homeowners leasing properties for just four days, such as during the Phillip Island MotoGP, pay the same annual rate as full-time holiday rentals.

Stakeholders have questioned if the fee truly encourages long-term housing conversions or functions purely as a revenue-raising mechanism.