Busselton holiday homes in line for 15 per cent rate hit as seven per cent rise planned for other ratepayers

The City of Busselton is set to target holiday-home owners with a double-digit rate hike as it tries to minimise a State Government-created hit to its bottom line. While other ratepayers are planned to be subject to a 7 per cent rise in rates from July, those who own properties used for short-term accommodation will be facing an average increase of 15.12 per cent. The council argues the significant rise is needed to support regulation of holiday homes in the area, which has previously been paid for by the city’s registration scheme. But that scheme will finish by the end of the year as the State Government implements its reforms on short-term rentals, which will require owners to pay an initial $250 registration fee plus an additional annual fee of $100. The change from a local government to a State Government scheme will see the city lose about $400,000 in fees, with the proposed holiday home rates rise expected to recover about $200,000 in the lost revenue. Chief executive Tony Nottle said everyone, including the city, was facing increased costs. “We fully understand the current cost of living pressures the community are facing, but unfortunately the city is also experiencing those same pressures when funding the delivery of a wide range of projects and services for residents,” he said. “Developing a balanced budget is always complicated, with many competing demands and increases in the cost of service delivery due to current market conditions.” Mr Nottle argued the city was “playing catch up” for smaller rate rises over the past four years, which he said were 6.7 per cent below inflation and 2.8 per cent under those in council’s long-term financial plan. This includes a zero per cent increase in 2020-21. “The city has a large number of community assets to continually maintain – buildings, parks, reserves, ovals, playgrounds, roads, footpaths, drainage, coastal infrastructure and more,” he said. “This is in addition to all of our much-loved community facilities, events, services and programs. “Critically, we are also planning for future infrastructure development to support our growing population, so we need to put some money aside to ensure we can meet those future needs while ensuring we continue to maintain a high standard of daily service delivery in line with the expectations of our community.” Council’s 7 per cent general rate increase is above the 3.9 per cent approved last year. The city has proposed to spend $154 million next financial year, alongside creating a new reserve fund to pay for future sport and recreation improvements in the area. Ratepayers have until July 10 to make submissions on the proposed changes.