What is the issue?
Growth of the online accommodation sector has been significant, with Airbnb properties alone exceeding 10 per cent market share in the last year.
There is an equity issue in terms of the rating classification of these properties, many of which are operating as a business but are paying lower, residential rates and are not paying the Accommodation Provider Targeted Rate.
What we are proposing
We are proposing that properties rented via web-based accommodation services, where the entire residence is let (not just a room), and depending on the number of days booked, will be rated as follows:
- up to 28 nights – continue to be rated as residential and the APTR does not apply
- between 29 and 135 nights
- rated as 75% residential and 25% business, and
- if the property is located within the APTR zone then 25% of the APTR will also apply
- more than 135 nights
- rated as business, and
- if the property is located within the APTR zone then the full APTR will also apply.
Read more about
Issue 3: Rates and charges, and rating of the online accommodation sector
You can also read the full consultation document.