The Hobart City Council has suffered a legal loss in fighting its so-called ‘war on short-stay accommodation’, this time involving an apartment overlooking the River Derwent.
The Supreme Court of Tasmania has today ruled against the council’s attempt to block the conversion of a third unit in a four-unit Sandy Bay Road complex into a short-stay offering.
This decision upholds a previous ruling by the Tasmanian Civil and Administrative Tribunal (TASCAT) made last year.
It potentially sets a precedent that could hinder the council’s efforts to control the amount of short-stay accommodation in the city, which last year included the doubling of rates for owners who convert entire properties.
The council first opposed the application in 2023, citing concerns about the potential impact on the ‘residential function’ of the strata scheme and the ‘unreasonable loss of residential amenity’ for the remaining long-term resident.
However, TASCAT disagreed, finding that the design of the units, with private carports and ground-level entrances and solid brick walls between each, would mitigate any negative impacts.
The council appealed TASCAT’s decision to the Supreme Court, arguing that any deviation from a primarily residential focus would automatically lead to an unreasonable loss of amenity.
However, the Supreme Court rejected this argument, saying it had been incorrectly assumed that any shift away from residential use would negatively impact residents.
Sources indicate the appeal was intended as a ‘test case’ to provide clarity for the council’s process when assessing visitor accommodation applications within strata schemes.
Pulse understands the council views the Supreme Court’s interpretation as a decision that will make it ‘very difficult’ to refuse future visitor accommodation applications within strata properties.
Councillor Louise Elliot has been vocal in her criticism of the council’s approach, questioning the legal costs and referring to the situation as a “war on short-stay accommodation”.
“It’s reassuring that our judicial system is able to look at these matters fairly and objectively. Short-stay is still people eating, sleeping and showering,” she said.
“I shudder to think how much this has cost ratepayers, not only in costs to prepare for battle at TASCAT and in the Supreme Court, but also whatever costs the council will have to pay the respondent.”
Councillor Ryan Posselt says the decision means there could now be “no protection from entire blocks of units being bought and turned into hotels overnight”.
“It means a loss of residential accomodation and makes a complete mockery of residential rezoning,” he said.
“I urge the Minister to intervene and change the law now.”
2023 data from the Real Estate Institute of Australia suggests 6.6 out of every 100 private rentals in Hobart are entire dwellings turned into short-stay accommodation.
The City of Hobart was contacted for comment.
