2021-10-12 P&E Agenda - Item 2 - Attachment 6 - Cost Benefit Analysis

COST BENEFIT ASSESSMENT – PROPOSED LOCAL LAW AMENDMENT: SHORT STAY
LETTING & HOME HOSTED ACCOMMODATION


1.         BACKGROUND
Noosa Shire Council (Council) has recently publicly notified a proposed local law to manage the operation of short
stay letting and home hosted accommodation across Noosa Shire to better manage the adverse effects on
predominantly permanently occupied residential communities from the increased utilisation of residential properties
for short stay accommodation.

All short stay let properties will require an approval under the proposed local law (exemptions exists for certain
precincts and sites), with conditions placed on the approval including appropriate use and site requirements, a
code of conduct for guest behaviour and the need for a local contact person who manages the property and deals
with complaints. The proposed local law does not aim to address potential issues with housing rental supply or
affordability potentially arising as a result of the use of traditional residential premises for short stay accommodation.

As part of the public consultation process, a list of likely anti-competitive provisions were identified in each of the
amending local law and the amending subordinate local law in the Public Interest Test Plan, which was prepared
in accordance with the requirements of the National Competition Policy guidelines.

The possible anti-competitive provisions identified in the Public Interest Test Plan include:

•    Administration (Amendment) Local Law (No. 1) 2021, Section 5 (Amendment of Schedule 2 (Prescribed
     Activities)).

•    Administration (Amendment) Subordinate Local Law (No. 1) 2021, Section 5 (Insertion of a new Schedule 21A
     – Operation of short stay letting and home hosted accommodation).

Under Clause 5(1) of the Competition Principles Agreement (CPA), legislation should not restrict competition unless
it can be demonstrated that the benefits to the community as a whole outweigh the costs, and the objectives of the
legislation can only be achieved by restricting competition.

To support Council’s Public Interest Test Plan, AEC Group Pty Ltd (AEC) has been commissioned to assess the
socio-economic costs and benefits of the amending local law and the amending subordinate local law. The
assessment is required to demonstrate the benefits and costs – and the overall net benefit or cost – to the
community from the proposed amendments.




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