THE Short Stay Levy Bill has been passed by parliament, and a 7.5% short-stay levy will be applied to short-term accommodation from 1 January 2025. But concern has been raised at the high contribution the peninsula will make to the levy, which will go towards funding affordable housing projects, and the small amount of funds to be spent back into the area.
It is believed the Mornington Peninsula has over 4,500 homes listed on the Airbnb platform alone. It makes the peninsula the highest short-stay accommodation rental market in the state, dwarfing the Surf Coast (2,254) and City of Greater Geelong (2,314). The Committee for Frankston and Mornington Peninsula sought assurances from the CEO of Homes Victoria, Simon Newport, in September that a fair portion of the revenue from the proposed short-stay levy would be used to alleviate the housing and accommodation crisis on the Mornington Peninsula (Push for short-stay tax revenue to stay on peninsula, The News 1/10/24).
They have now received a reply stating that only $10m of the state government’s $6.3b Big Housing Build and Regional Housing Fund would be spent on the peninsula. “That’s 0.15% from a major housing initiative delivered to a local government which is currently ranked the second worst for homelessness and those sleeping rough in metropolitan Melbourne,” said Josh Sinclair, CEO Committee for Frankston and Mornington Peninsula. “It’s difficult to think of any other region in Victoria that has significant housing issues like ours but with so little support and investment from government to address them.”
Mornington Peninsula Shire is ranked the second-worst metropolitan local government for homelessness and those sleeping rough – but is ranked in the bottom four metropolitan councils in the Victorian Government’s Big Housing Build. The region also accommodates eight million visitors a year, which puts further strain on cost of living and house affordability.
Comparative to the Mornington Peninsula’s $10m on affordable housing, the City of Frankston is being allocated $48 million. The City of Greater Geelong – an equivalent region in both population and economic output – has received $214.5 million from the housing programs; $204.5 million more than the shire in the same period, and $156.5 million more than Frankston and the Mornington Peninsula combined.
“Our region has more than 40% of renters living in rental stress, a severe lack of accommodation for our workforce; major shortage of social and affordable housing; and the unwanted reputation of being the fourth worst local government area for homelessness in the state,” said Sinclair.
“The committee will continue to advocate with both levels of government and both sides of politics for more support and investment in housing and accommodation on the Mornington Peninsula. “We can and must do better when it comes to getting the support and critical investment we need for housing.”
First published in the Mornington News – 5 November 2024