The picturesque coastal area of Bass Coast Shire, home to popular destinations such as Phillip Island, has become the focus of a heated debate. Earlier this year the council announced that the annual short-stay registration fee for holiday-rental properties would climb from $324 to $600, with larger homes facing a $900 charge.
For many owners, the increase feels sudden and punitive. Lisa, a two-year homeowner who rents her seaside retreat for roughly $220 a night, describes the hike as “extortionate” and says she never expected such a jump. She, together with other proprietors, has launched a petition that has already gathered more than 550 signatures, urging the council to revisit the decision before the next peak season.
Fee increase and council’s justification
Mayor Brett Tessari defended the move, stating that the additional revenue is required to offset the growing strain on municipal services. He highlighted issues such as waste collection, beach clean-up, and complaints from permanent residents about disruptive behaviour linked to short-stay accommodation. Tessari argued that the previous fee level left the shire “nowhere near where we needed to be” to manage these pressures effectively.
The council’s position aligns with research from the University of Sydney, where housing specialist Nicole Gurran notes that regional authorities often face “sudden population booms” during holiday periods, which translate into higher costs for garbage disposal, park maintenance, and public-space policing. Gurran also explained that the state-wide 7.5 % booking levy introduced in 2025, which raised $85.8 million for social housing, does not reimburse local councils for these specific operational expenses.
Owner opposition and petition campaign
Owners across the Bass Coast argue that the higher fee will drive many property owners to keep their homes vacant rather than list them on platforms such as Airbnb or Stayz. Lisa’s petition emphasizes that empty homes reduce the accommodation supply during the summer surge, a period when Inverloch and surrounding towns experience a “population explosion” and rely heavily on holiday rentals to sustain local businesses.
Glenn Morris, president of the Inverloch Tourism Association, warned that the fee could make short-stay rentals “unviable,” jeopardising the region’s ability to host tourists. With more than 1,000 properties formally registered but over 2,300 listings detected on major booking sites, the gap between regulation and market reality is already widening. Morris stresses that fewer rental options will leave visitors with limited choices, potentially diverting tourism spend to neighboring areas.
Statewide levy and accusations of double-charging
Victoria’s introduction of a uniform 7.5 % levy on short-stay bookings in 2025 sparked a nationwide conversation about “double-dipping.” Some councils, such as Warrnambool, eliminated local fees after the state levy took effect. Bass Coast, however, chose to retain its own registration charges, making it the jurisdiction with the highest local fees in the state.
Providers contend that the combined burden of the state levy and the council’s registration fee places an unsustainable financial load on owners, who may pass part of the cost onto guests through higher nightly rates. Gurran suggests that the impact is likely split between providers absorbing some of the expense and consumers bearing the rest, creating a “cost-pass-through” effect that could erode the competitiveness of Bass Coast’s holiday-rental market.
As the petition circulates and community pressure builds, the council faces a challenging balancing act: securing sufficient funding for essential services while preserving the economic engine that short-stay tourism represents for the region. The outcome will determine whether vacation homes remain vibrant assets for visitors or become dormant properties that undermine the very tourism they were meant to support.
