Airbnb has lodged a formal complaint with the Tasmanian Ombudsman over what it described as the Hobart City Council’s treatment of short stay accomodation hosts, Pulse can reveal.
The complaint targets two council decisions, a 2023 differential rate that doubled the standard residential rate for short stay properties and an April 2026 vote to raise the change of use permit fee by more than 1000% from $435 to $5,000.
Airbnb alleges both decisions were made without proper evidence, with no cost analysis behind either figure and no legal advice sought on the fee increase.
The company also claims the council failed to consult affected residents and businesses as required under the Local Government Act.
Airbnb argues the measures amount to a backdoor ban on a lawful activity, pointing to on-the-record comments from councillors describing the intent to make short stay accommodation financially unviable.
Information obtained by Pulse shows the company is asking the Ombudsman to investigate, require the council to change its policy and process, provide an apology to affected hosts and consider disciplinary action.
In response, Acting Lord Mayor Zelinda Sherlock said the council is aware of the complaint but has not yet received a copy.
“However, we will cooperate fully with any Ombudsman process,” she told Pulse.
“Given the matter is currently under consideration, it would not be appropriate for the City to comment on the specific claims made by Airbnb at this time.”
Sherlock noted Airbnb has also made a separate submission on the council’s proposed planning amendment to ban new whole-home short stay rentals, which will go before the planning authority committee on August 26.
Airbnb had argued the amendment is legally flawed and will not fix Hobart’s housing crisis.
“Over 80% of Hobart hosts share just one home and over half say the income helps them stay in their own home amid cost-of-living pressures,” an Airbnb spokesperson said last month.
The Housing Industry Association also opposed the restrictions, with HIA Tasmanian executive director Benjamin Price saying “taking a property off the short-stay market doesn’t build a single new home”.
A similar ban was knocked back by the Tasmanian Planning Commission in 2022.
