The MRBTA has been contacted by some traditional accommodation members concerned about the MRBTA’s position on holiday homes operating in the region. The Board wishes to clarify the Association’s position.
In its submissions and appeals at all levels of government, the MRBTA has deliberately focused on what it believes are the two main issues with the greatest potential to bring about the required change for the accommodation sector.
While the Board is aware of the specific difficulties faced by many traditional accommodation providers, it believes the most qualified people to share these individual stories are the operators themselves. The Board were aware that many accommodation providers provided their own submissions to the inquiry sharing their first hand experiences.
The MRBTA continues to have a close relationship with government, and will continue to advocate on behalf of its members around the two issues highlighted below.
1. Level playing field
Holiday homes and traditional accommodation should be required to meet the same government regulation, including all relevant fire and safety, building and insurance regulations. Holiday home operators should also be required to pay rates and taxes consistent with the commercial nature of their operation.
Any operator offering accommodation without the required approvals should be able to prosecuted, and relevant authorities need to provide sufficient resources to undertake compliance to be effective in deterring illegal operators.
The Board’s belief is that changes to ‘level the playing field’, including equal regulatory standards, payment of rates equivalent to existing commercial properties, and thorough ‘policing’ of compliance, will create a fairer system and raise the hurdle for home owners considering offering their houses to paying guests. These factors, combined with ATO requirements to pay income tax on earnings and capital gains tax on the sale of any property used for commercial purposes, will very likely act to limit the number of holiday homes as well as helping to ensure a higher quality.
Please do not hesitate to contact the CEOs via [email protected] should you wish to discuss further.